It did not take very long for the calls for state support for tourist businesses to start. The Hoteliers’ Association (Pasyxe) started complaining about a fall in bookings within a week of the start of the war on Iran, and on Monday a political party decided to submit proposals for the “support” of tourism.

Disy leader and House president Annita Demetriou held a gathering of stakeholders (Pasyxe, Stek, Association of Travel Agents, Oev, Keve, Shipping Chamber) for an exchange of views about the possible consequences of the Iran war on the economy. After the meeting, having heard what the stakeholders had to say, Demetriou said that the “great dangers for the tourism industry had to be faced as soon as possible, otherwise there would very be very serious consequences”

It is rather rash and alarmist to speak of great dangers and forecast very serious consequences without having the slightest clue of how the situation with the war will develop. Nobody knows how long it will last, how the Eastern Med will be affected, the impact on the world economy and the travel industry. These are all unknown, which makes it rather difficult to come up with any meaningful plan to face a possible crisis. Demetriou came up with platitudes about preparing for the medium- and long-term as well as for unity in dealing with the crisis.

She also presented seven proposals for supporting tourism, which she must have discussed with the stakeholders. These included, safeguarding air connectivity, increasing the budget for the island’s international promotion, utilisation of the Cyprus presidency of the EU Council and the drafting of a crisis management plan for the tourism industry.

Predictably, Demetriou also proposed state handouts for the industry. She wanted measures for the support of workers, guarantees for travel agents and “the setting in motion of support incentives for the industry and tour operators, as had happened in the management of Covid-19.”

This is rather vague, but we think it is rather premature to start talking about incentives for industry. Who exactly does the Disy leader propose the taxpayer has to support and how? Hotels, restaurants, beach clubs, pubs, bars, car rental firms, tour guides, hotel employees? Tourism is a big industry and everyone might be affected by a prolonged war that discourages travel and holidaying.

In Cyprus many businesses would be affected by a crisis in the industry and they cannot all be bailed out by the taxpayer, so any such thoughts should be put aside, because it would encourage our profligate government to engage in a spending spree. No business needs state support, especially hotels which have been enjoying record profits in the previous years and are perfectly capable of taking a hit if bookings are down this year.

The idea that the state must come to the rescue of private business when there is an economic downturn has no place in a market economy.