Panayiotis Konstantinou, President of the Famagusta Hotel Association, expressed optimism about tourist bookings in the Famagusta district despite the bankruptcy of the German tour operator FTI and the loss of thousands of reservations.

Mr. Konstantinou told the Cyprus News Agency that "the booking situation in Famagusta district hotels is not as expected, with several establishments not reaching desired occupancy levels. However, this appears to be improving after mid-June, with better arrival flow and hotel occupancies expected to reach satisfactory levels." He also mentioned that "although there is optimism, it seems we are somewhat behind in bookings compared to 2023."

Regarding the FTI bankruptcy, he stated that "about 500 people in the Famagusta district have had their holidays concluded, and the process of repatriation to their countries has begun. Fortunately, everything appears to be proceeding smoothly, with no major issues concerning flights or the repatriation process."

He described the FTI bankruptcy as "a blow to the Famagusta district, as FTI facilitated approximately 30,000 visitors to Cyprus, with 70% to 80% of their business centered in Larnaca and Famagusta."

When asked about the bookings that tourists from various countries had made for vacations in Cyprus with FTI, Mr. Konstantinou responded that "many of these bookings will be lost. However, some reservations have already been made at the same hotels through other partners or tour operators. While this is positive, the majority of the bookings will likely be lost."

Regarding potential compensation for hotels where FTI customers had booked vacations, Mr. Konstantinou expressed his belief that "there does not appear to be any compensation forthcoming. Unfortunately, hoteliers are the last in the chain to expect payment and there is no indication that any of these funds will be returned to the hoteliers."

He added that "PASYXE is conducting a study to collect certain data to assess the situation, as FTI used to provide advance payments to some hoteliers. For some years, FTI had been experiencing financial difficulties, and hoteliers had taken certain measures. However, there are still outstanding amounts, and in some cases, they are substantial."

In response to another question, Mr. Konstantinou said that "the gap left by the bankruptcy of this tour operator must certainly be filled by other markets and agents, given that demand for vacations will continue. This is yet another challenge in this season, in addition to others we have to face, such as the ongoing war in Ukraine and the Middle East and the poor economic situation in countries from which we draw tourists, such as Germany and the United Kingdom."

"There are also sporting events, such as the Olympic Games in Paris and the Euro Championship, with many people having made arrangements to attend these events in person," he concluded.