Revenue from tourism up 6.8% in November

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By Stelios Orphanides

Revenue from tourism rose in November 6.8 per cent to €89.5m compared to the respective month of 2016, against an increase in arrivals of 16 per cent, the statistical service said.

In the first 11 months of 2017, tourist spending in Cyprus rose 12 per cent compared to January to November of 2016, Cystat said in a statement on its website on Friday. In January to November last year, arrivals rose 15 per cent.

During their stay in November, which tourists extended on average by 0.2 days to 9.7, they spent on average €618.67, 8.3 per cent less compared to November 2016, Cystat said in a separate statement.

Visitors form the UK, Cyprus’s largest source of incoming tourism, reduced their average stay by 0.7 days to 11.4 and their budgets 23 per cent to €645.98, Cystat said. Those from Russia, the second largest market, reduced their spending 8.4 per cent to €637.51 and extended their stay by 0.9 days to 9.6.

 

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • Philippos

    The slightly changed durations of stay are mostly to do with flight timetables and are not really that significant, but changes in expenditure, including up to a 23% REDUCTION in one of the most populous origin nations is just a disaster. On the one hand we are getting cheaper and cheaper tourists and on the other, we cannot stop building Marinas and Tower Blocks of so called luxury apartments, or put another way, just plain expensive, or even more accurately, over priced. An Economics Student of three days standing could see that that wasn’t sensible or likely to succeed. More and more of our tourists are likely to live in Tower Blocks and sure as hell would not want to repeat the experience in their leisure time

    • Alfie

      Erm, have to disagree with you here. Cheap or expensive tourism is irrelevant. Ultimately, it’s the overall revenue/profit that matters. Remember, Rolls Royce went bankrupt, it’s the Hyundais and the Toyotas that succeeded most.

      • Philippos

        Exactly Amigo and it is both revenue and profit that is going down. Rolls Royce was “reborn” within the BMW Stable, having become very much behind the game and trading on a past reputation to a narrow market, so there’s a lesson for Cyprus there too, which is very vulnerable to its two main customers

        • Alfie

          Nope overall revenue and profit are going up according to the report. I think you’re confusing overall figures with figures per tourist. And that’s exactly my point, it’s the overall figures that ultimately matter, not the ones per visitor.

          • Philippos

            I think that you are missing the trend, namely more and more “cheaper” tourists, that’s not the way for a small country to go. We need fewer tourists spending more. Our infrastructure cannot go on adding to the Arrivals and taking less income per head

          • Alfie

            I’ll put it simply for you: I’d rather sell a million Hyundais with a €1 profit per car, than sell 10 Rolls Royces with 100€ profit each. That’s clearly what’s going on here, and that’s why Hyundai is conquering the world, whilst RR went bust and is now just a brand that changes hands.

          • Philippos

            That’s what you would rather do. Me not. I should rather that our country was not devastated and its meagre resources plundered by hordes of impecunious and primitive beings, most of whom don’t even smile ever, just to enrich the few bloated and equally primitive “Stakeholders” who are wealthy enough already and believe they are above the Law, treat their employees like pooh and show scant regard for the rights of their fellow citizens and don’t repay their Bankloans…and who would dream of buying a Hyundai ever.

          • Alfie

            Going for the Rolls Royce model would result in fewer tourists that spend much more per tourist, right?

            The net result will be:
            Disproportionate numbers of luxury hotels in the hands of these fewer stakeholders
            Disproportionate numbers of luxury restaurants again in the hands of the few, same applies to bars, cafes etc and all that supports the tourist industry.
            Less overall employment in the tourist and allied industries
            Less overall income for the country, less equitable distribution of income.

            There’s no perfect model, but it’s clear that the Hyundai one works better, if your interests lie in benefiting the many.

            As to the impact on resources, I agree, this is an issue, but it needs to be addressed separately. It’s not directly linked to one or the other model.

          • Philippos

            Well your analysis is a bit extreme because we have Lexus, Aston Martin Bentley, Range Rover etc, not just “Rollers” Additionally a significant proportion of wealthy people want traditional, environmentally friendly simplicity. (One reason why we are losing here in Cyprus and going to continue to lose). Employed people per tourist will go up, Overall income is likely to rise because more will be spent here and distribution will rely on Government Policy which should adjust to fit the “model”. It might help if you looked at which “Model” caused more money to be brought into Cyprus and spent here as opposed to being spent in the origin country or staying inside a single hotel business, many of which are failing due to lack of profitability. and NOT going into Restaurants, Excursions, Cafes and Bars etc

          • Alfie

            To use your examples: Aston Martin, Bentley, Range Rover, Ferrari, Bugatti. .. all these companies went bust and got rescued by the Toyotas, Fiats and Hyundais of the world – who now own them.

            You’re wrong if you think luxury hotels/tourism have less of an environmental impact. Remember, these are the tourists that go for golf courses, marinas and hotels like Anassa in Akamas.

            Overall income and employment will be lower, yes per tourist income/employment is higher, but the market for luxury tourists is niche, nothing like the market Cyprus has now.

            The businesses that are failing are as a result of natural wastage, in any environment you will have some that are not up to the task, and that’s the nature of a healthy, market driven economy. The sh*t ones will go bust, and so they should.

          • Philippos

            Thank you for a really interesting discussion. I hope that this is being replicated in government offices in devising the new “National Plan” and in selecting suitable personnel for the “Secretariat”. Just to say that many of the businesses in the category of your last sentence above have been allowed to continue way beyond their “Sell by Date” due to the recent influx of “Bargain Basement’ Tourists from Mother Russia, so they have not gone bust yet as should have happened. Behind every such “Bust” you will find a huge long outstanding NPL

          • Alfie

            I agree, propping up failing businesses is counter productive, and detrimental to the economy as a whole. Especially if done through eventual NPLs. That’s not a solution to any industry. Not to be too cliché again, but take the British government’s attempts to prop up its automotive industry in the 70’s and 80’s. The whole venture fell flat on its face.

            I don’t see the issue with attracting Russian or tourists of any other ethnicity. Russian tourists have provided valuable income and employment for many years and a healthy tourist industry should not rely on any single market too heavily. So the move to diversify Cyprus’ sources of visitors should be seen as a good one.

          • Philippos

            Yes, diversity is vital, hence having around 80% of your business coming in from two clients (UK and Russia) represents a huge risk especially when you look at their respective economic situations and mostly the instability of their currencies versus the EUR. It has also happened rather fast in the case of Mother Russia. Usually if it comes in in big lumps, it goes away in big lumps too. Very much the Russian case since a large portion of that market will seek the cheapest holiday destination each year. The comparison between Russian tourist and the UK Car industry in the past is a good one. When BLMC(?) made GBP 5 per Mini, the profit was so low that it could not cope with upgrading, modernizing , even replacing capital equipment and redundant buildings. Look and Learn Cyprus

  • David Hill

    Government should clamp down on A I hotels as this is destroying the local areas. Wouldn’t be so bad if they had local cuisine but on my one occasion to use a said establishment most was dedicated to east european cuisine.Diabolical.

    • Alfie

      Better if they served fish and chips, right? What’s wrong with East European cuisine, may I ask?

      • David Hill

        When in Rome. Local dishes served in Cyprus like halloumi salads and the like not soused herrings for breakfast.Just expected your best local fare,what not to like?.

        • Alfie

          I think market forces will dictate what’s best. Had there been no market for the Eastern European cuisine you refer to, then these establishments would have folded. If they continue to trade successfully, then although you might not like it, there’s people out there who do. There’s plenty of fish meze restaurants around to cater for you too!