Our View: CTO needs to get its act together

Published on March 12, 2010

TOURISM, once the driving force of the economy, has fallen on hard times. The decline, caused by lack of competitiveness, was evident before the recession hit European markets, but it has been speeded up as a result of the world economic downturn. Tourist arrivals and spending both decreased last year and figures for this January indicated that the decline was set to continue.

The government took some measures to help the industry last year, but it was little more than a damage limitation exercise – an attempt to apply the brakes on the downturn, by making the product slightly more competitive. Inevitably, the budget for advertising and promotion abroad was increased but this has become standard practice – every year more is spent in order to limit the decline.

This year, however, we might not even be spending any money on advertising and promotion because the CTO’s budget has become an issue of legal dispute between advertising agencies. It is the familiar story of a company failing to land a contract for the creative part of the campaign and appealing against the decision to award it to a rival tender. In this case, the company which had lost out appealed because the winning bid was too low – only €2.7 million compared to its €6.75 million tender. Interestingly, the CTO expected to have paid €8.75 million.

We cannot comment on the details of the dispute or comment about who is right and who is wrong as these cases are often judged on procedural technicalities. What we can say though, is that the delay would cause more problems for the ailing tourism industry. Ironically, this is the CTO’s advertising campaign for 2009-2012, which gives a good indication of the urgency with which the organisation operates.

It took a decision on its ‘new’ campaign with a year’s delay that could be extended by another several months, assuming the Tenders Review Board takes a speedy decision. For the time being, the old, tired, ‘Love Cyprus’ message would have to be used if there is to be any advertising campaign. This is the message that should have been replaced in 2009, but was not because the CTO, like all state organisations, is structurally incapable of taking any decision on time.

The Organisation’s director did not see that running the same old advertising campaign, with the same visuals and the same message would be a problem. But if she felt the old campaign would do its job, why had the CTO decided to commission a completely new campaign? The truth is that by the time the new campaign, which may have renewed interest in our tourist product, is ready to roll, most tourists would have already booked their holidays for this year.

We had hoped that the crisis the tourism industry was going through would have forced the CTO to get its act together, but nothing it seems could instil a sense of urgency in a state organisation.

Thu, April 1st 2010 at 21:54

fintan from dublins fair cityfood comments:

Cypriot food, klefitco, stifado i love it, lamb and beef baked in ovens for 12 hours or whatever, available throughout the island.Correct me, should i be wrong i have only seen one of these ovens actually alight. 1Oam one morning i noticed smoke billowing out from what i thought was a building I could see activity around the place and soon realised it was one of these famous ovens. Laxia Palace on Protara Ave preparing for a wedding that evening I had some, fabulous. Re tourists rip off, go on strike for one week they will listen then, they aint that stupid.

Thu, March 18th 2010 at 15:58

Barbara from Cheshire UK comments:

Hello

I have been visiting Cyprus for many years now and have to agree regarding the fall in tourism. A lot I believe due to the Euro exchange rate that brits now face but this fact alone is not sufficient a reason for people not to still come in their droves.

I have to agree that Cyprus no longer has it's character of old and very infrequently can you find anywhere supplying traditional cypriot cusine and hospitality. Cyprus seems hell bent on destroying the very fabric which attracts it's visitors in the first place. Wake up Cyprus now and get back your identity back before it's too late; sea and sunshine i'm afraid is not enough to allow complacancy and excessively high prices to set in.

Personally I will still come because I have many cypriot friends and am able to look beyond the greed and poor infrastructure as I avoid most of the tourist areas.

Wed, March 17th 2010 at 19:14

Maria from Limassol comments:

The ads were fine, they may have even encouraged quite a few people to come here. The problem starts however when one goes to book a holiday and finds it is cheaper to fly ten hours in business class than 4 hours on a no frills carrier and continues all the way to one of the most expensive coffees in Europe and the worst service! Forget the ads and sort the rest out CTO!

Mon, March 15th 2010 at 13:09

patrickdh from barcelona-larnaca comments:

Cyprus Mail could use some more objective reporting about issues and be less blatant about supporting hidden agendas.
Surely everyone is entitled to an opinion, but coming from a 'considerated media' I feel it's easy to be sitting on the sidelines just relating facts with sole interest of riding the wave of disgruntlement and contributing to the senselessness of how certain businesses are run.
We have an endemic problem, and more serious issues than managerial obstacles at the CTO and as Barbara expressed it "Your people were loved for their warmth and hospitality and their strong pride in all tradition, its like they have died inside or cannot be bothered anymore with visitors most of the time".
Tourism hasn't fallen upon hard times, it's about a model adjustment, mass tourism can no longer be supported in Cyprus. This shift in models is what the country as a whole is having to face, with little energy, desire and support to do it. Is there a relevant question: Should The focus be on strong structural changes and or on quick-fixes by price? One requires leadership and the other business dealing. Which of these will enable to push for a tourism that is sustainable, preserves the island's balance for years to come and restore economic value behind authentic hospitality services.
It's because I don't want you to feel sad as you sit by the sea and remember those vibrant, traditional and true Cypriot hospitality days....

Mon, March 15th 2010 at 12:31

Denis McLean comments:

Having lived here since 1994, I have for many years recieved visitors from family and friends on a regular basis. Sometimes 2 - 3 times per year, sadly the last 2 years have seen only one visitor. A family friend with her 2 teenage boys, after pickng the up and dropping their luggage we went for a quick meal, this cosisted of: 4 half kebabs with 1 beer, a glass of local wine and 2 soft drinks. The price for this feast was Euro 52.00, nearly 50 quid UK! As you can imagine that was their only night out in a week, we just took a picnic on our trips out with maybe buying the odd refreshment if a decent price. So, after usually having anything up to 12 visitors a year none are coming back, they have all tried Turkey and Egypt where the prices are reasonable and service first class. Will they ever come back? I doubt it.

Sun, March 14th 2010 at 14:02

Kanine comments:

Ryanair are not the solution the the problem. It was widely publisised the reason Ryanair will not fly to Cyprus is because of the high airport taxes jointly imposed by the Government and the Airport operators.

Greed, by all. It is the only way that Cypriots know how to run their businesses. Increase prices and hire Eastern Europeans who are desperate for a job at very low wages working rediculous hours. This is why there are no Cypriots in the tourist industry, operators will not pay a fair wage.

The problem is the world and Europe has moved with the times. The Cypriots entered the EU but still do their own thing behaving and acting like a little independant island.GO OUT THER AND SEE WAHY PEOPLE GO TO EGYPT AND TURKEY. The Euro is not the problem, the Cypriot arrogant greed is the problem.

Reduce your prices, get more people in make a bit less on each person. They come back more often and hey presto you may make some money and everyone is happy.

It is funny reading about the debates on Casinos, how stupid. Cypriots go to the North and gamble on line yet the Government want to be the peoples Protector, so the revenuse goes elsewhere. Shops are regulated when they can have sales! How stupid is this.

The story goes on.

CYPRUS look how the rest of the world operates, free competition, price driven promotions. Entreprenerial ways of running the country.

As i said before, remain in your little bubble, BUT STOP COMPLAINING. Or wake up, become competitive get your act together. The solution is not difficult the work has been done by others.

Just copy them

Sat, March 13th 2010 at 16:19

Barbara from England comments:

There is always so much talk about declining tourism on Cyprus but nothing is changing to improve it ........10 million Brits stayed in the UK last year for their holidays because of the Euro which is badly damaging Euro holiday places..with Egypt and Turkey having a massive influx of tourism these past few years. I am confident that the British love Cyprus and would love to return but Euro is killing it, and the overwhelming numbers now of eastern bloc staff in hotels and restaurants.....where and what is Cyprus anymore? Your people were loved for their warmth and hospitaly and their strong pride in all tradition, its like they have died inside or cannot be bothered anymore with visitors most of the time.

Selfishly speaking and having visited and loved the island for 28 years now.... its people generally have now put high value on securing material things and money..but I also take into account that Cypriots have become fully involved in further education and unlike their fathers, uncles etc no longer see the once kudos of working in the best tavernas and hotels/tourism......Tourism/Service industries are not given the status they deserve to attract the best and homebred cypriot employees
....No longer do I have the pleasure of a Cypriot looking after me in hotels, restaurants,..... authentic tavernas are few and far between, traditional music and dance seems to be for special occasions, and on my last visit in January this year to a well known 4 star hotel, I had to change rooms 3 times to enjoy my 10 day stay. Considering the number of rooms and the hotel capacity at maybe 30% maximum ...persuading the non cypriot reception staff to change my room was very hard work...and this is my 2nd stay in 12 months with this hotel....Years past they would have welcomed me back and been horrified I was not happy with my room....thats how things have changed.

I will go back because I have strong friendships with Cypriot friends, but I feel sad when I sit by the sea and remember
those vibrant, traditional and true Cypriot hospitality days....

Sat, March 13th 2010 at 16:01

Mike from Limassol & UK comments:

Pauline from Kent - Low cost, no frills, cheap carriers can only operate in a 3 hour window in order to get 4 return trips in a day or near as paossible. Malta from London is around 3 hrs 10 mins so achievable, just. Cyprus is a no no at nearly 5 hours prices must be at least double & over that time meals & other services kick in.
What we need is competent management (almost a contradiction of terms within the CTO) a combined effort not to extort as much from each & every tourist for what is a pretty shabby, dated and very poor product and a concerted effort to clean up the country and get rid of all the half built construction sites and fly tipping. War torn beiruit or Kosovo was never as bad as we have it now in full view of visitors.
Finally we need to eliminate the expletives sprayed on every available wall by our morons as visitors paying €4000 to €8000 per family in questionable 4 & 5 star accommodation really do not want to see it. Sadly it is like asking for pie in the sky therefore it aint gonna happen & other destinations will prosper.
We can build all the Golf courses, spa's, and seven star Hotels you like but if we continue to man them with East European or Ukranian staff who have forgotten how to smile and fail to contribute to the customers good experience then I am afraid my little village will not benefit from the pleasure of seeing visitors admiring how Cyprus used to be like and spending their money in our reasonably priced eateries.
Whenever I travel to Paphos, Limassol, Larnaca or Paralimni tourist areas I cringe at some of the prices being asked. Needless to say I never take a taxi either. We have sealed our fate for a long time to come unless we change.

Sat, March 13th 2010 at 02:54

jim chris from london comments:

As a dedicated tourist to the mother land , year after year , I see Cyprus as a building site that never ends , , and a people that complain about other countries issues , but never sees its own .
Why can I fly to Turkey , Spain , Italy , Romania , for an all inclusive Holiday , for the price of just a plane ticket to Cyprus.
The high value of the Euro has seen a decrease of 1.29 to 1.08 for a British pound , in the last 24 months.
Recession in Europe is at a crisis , and why is Cyprus an exception.
Entering a few hotels this year , the majority of staff did not speak Greek , as they were not. Service was nothing special , and
an arrogant expectancy that I should return to Cyprus as it was my motherland.
I bought a place and I still have not deeds , payed my tax on my car that came fron a European country . It used to be paradise compared to cold England , but now England is cheaper than Cyprus.

Fri, March 12th 2010 at 22:53

T from London comments:

oops!
I meant that Cypriot traders seem to believe that tourists are anything other than wealthy, when in reality they are generally just ordinary families on a budget.

Fri, March 12th 2010 at 22:50

T from London comments:

I have been coming to Cyprus for the UK school summer holidays for the past 6 years. Over this period I have seen the prices rise and the quality decline. 2009 felt like the most expensive summer ever and I did not go crazy with going out nor buying impromtu treats. There were fewer tourists about and the Cypriots seemed intent to make their money on those who came by further overinflating their prices. The poor Euro rate is another factor, but generally it is the Cypriots who refuse to believe that tourists come over with limitless cash and credit cards. Last year many of my friends who generally visit Cyprus every summer said that they would give it a miss for a few years. It is a shame as Cyprus is a lovely place to visit with a young family. Things will have to get much worse before we see a change. Ironically the Cypriots are hard core hagglers who refuse to be overcharged even by 1 cent! They need to realise that value for money extends to us all.

Fri, March 12th 2010 at 22:23

Joe Citizen from Limassol comments:

I second all comments, cheaper prices allround will do the trick. I doubt if the top brass will convince greedy owners though. I think we need to roll further downhill hoping that when these owners crash into financial trouble at the bottom of the hill they might wake up and smell the coffee. We don't need a toothless CTO for anything.

Fri, March 12th 2010 at 22:21

Pauline from Kent comments:

Cyprus really needs Ryanair and the sooner they come the better!!!

Fri, March 12th 2010 at 18:31

John comments:

Cheaper flights will not be the cure all for the diminishing Cyprus tourist package. Cheaper flights will encourage dearer Cypriot prices again. Why? It is their mentality to squeeze as much as possible from the foreign visitor in front of them at that moment in time. Think about tomorrow? Tomorrow never comes does it?

Fri, March 12th 2010 at 14:23

James JH lockhart comments:

Kanine Excellant comment Hit it on the head, But Also the Fact Will Anybody do Anything apart from Blame others, With ryanair, Daily flights to MALTA from many Uk Airports from 39 Euros upwards return !!!!

The maltese Know that The visitors if given These Sorts of Flights will Spend In Malta Even the maltese Airport taxis Put paphos Airport to Shame, Agreed written tarrifs, purchase a Taxi trip in the Airport, At the prices Shown.

But Malta is 2010,

Fri, March 12th 2010 at 13:43

Kanine from London comments:

The problems with the decline on tourism, cannot all be blamed on the CTO. They are a small part of the problem. I am a UK bsed Cypriot and come to Cyprus frquently.

It is not just the cost of flights it is everytbing.

The ripp off arrogant culture which has developed in Cyprus is the problem.

Flights are too expensive because of the high airport taxes. The CTO is run by a bunch of beurocrats who have no idea how to run a business commercially. They are there to line their own pockets and employ their friends and families.

Hotel owners think they have got something great to offer and just rip people off. The truth is the hotels are just average. Go and see what other countries offer.

Restaurant and bar owners are as bad as the Hotel owners. Offering cheap food at inflated prices.

It is cheaper to stay in a hotel in London. It is cheaper to eat out in London. A cup of coffee in Starbucks or Costa Coffee is cheaper in London.

Unfortunately until a few businesses go bust and people begin to wake up at their blinkered arrogant behaviour, nothing will change.

If you travel around the world you will see that business and government organisations have a structured commercial approach to business. Not in Cyprus though. Everyone thinks everyone is a theif and cheat - except of course themselves.

Wake up Cyprus otherwise it will take years before you get back to reality.

Recruit some expertise from outside of your little bubble. See what others are doing.

Unfortunately though the Cypriot culture is not to unite and work together, instead everyone blames everyone else!

Fri, March 12th 2010 at 12:18

fknose from Cyprus comments:

Tourism is basically a 'people' business; unfortunately we can't cut it in that department....

Fri, March 12th 2010 at 12:17

Pauline from Kent comments:

Look at Easyjets flights to Cyprus they are similar to ones of Cyprus Airways , its about timne to get Ryanair flying into Cyprus. We need more low cost airlines. Malta has Ryanair, now Greece has Ryanair, so why can t Cyprus have ryanair too.

We really need Ryanair to be in Cyprus.

Pauline