The tourism industry in Cyprus appears to be recovering from the impact of the sanctions imposed on Russia due to the invasion in Ukraine. The sector has been steadily growing in 2023, experiencing an 8% increase compared to the successful 2019 tourist season. However, some businesses still face significant sustainability challenges, prompting the government to step in and support them to prevent closures and avoid widespread unemployment. 

These discussions took place during a recent session of the Energy, Trade, Industry, and Tourism Commission, focusing on the repercussions of the Russian sanctions on the Cypriot economy following the invasion in Ukraine. 

President of the Commission and member of the Democratic Rally (DISY) party, Kyriakos Hadjiyiannis, highlighted the need for Cyprus to assist businesses severely affected by Russian sanctions and subsequently facing high unemployment rates. He emphasized the importance for the government to engage in a dialogue, primarily with the tourism sector, to understand the extent of the impact and devise a comprehensive support plan. Hadjiyiannis stated that financial aid is not the only solution and called for a holistic approach.

Moreover, the Deputy Minister of Tourism, Kostas Koumis, elaborated on the consequences of the sanctions on the tourism industry, categorizing them into two groups: direct effects, such as the cessation of tourist movement from Russia and Ukraine, and indirect effects, including increased operational costs for tourism businesses and a general rise in prices. Cyprus experienced both direct and indirect impacts due to its significant dependence on Russian and Ukrainian markets. In 2019, tourists from these two countries accounted for 22% of total arrivals, reaching a staggering 876,000 visitors.

In response to the challenges faced by the tourism industry, Deputy Minister Koumis emphasized that the Ministry maintains daily communication with businesses and the market in general. He assured that the government remains proactive and committed to improving air connectivity to Cyprus and expanding into new markets.

To fulfill his pre-election commitment to strengthen tourism, the government of Nicos Christodoulides is moving forward with the establishment of the Tourism Promotion Agency, according to Brief. The official approval of this initiative is expected in the upcoming Ministerial sessions, even perhaps in today’s session. The agency will aim to enhance Cyprus' image as a tourist destination and work closely with the private sector and other tourism entities. It will build on successful past campaigns while developing new promotional programs and communication strategies.

The Tourism Promotion Agency will replace the Marketing Support Committee, which at the moment comprises representatives from Hermes, STEK, PASYXE, ACTA, and PASYDIXE. The new agency's primary role will be mainly advisory, contributing to the formulation of policies and actions to promote Cyprus as a tourist destination. According to Brief sources, the proposal suggests the involvement of all aforementioned associations, representing the Marketing Support Committee, and the inclusion of representatives from Leisure Centers, Tourism Development Companies, KEVE, and OEB.

Cyprus has firmly established itself as an attractive and affordable destination for tourists, demonstrating its competitiveness and drawing in a growing number of visitors each year. The upward trend suggests that 2023 will outshine even the successful year of 2019. The island's numerous strengths, including its welcoming locals, high-quality service, abundant entertainment options, tantalizing cuisine, short travel distances, and inviting warm seas, hold great appeal for travelers from Europe and beyond. As the establishment of the Tourism Promotion Agency progresses, Cyprus aims to strengthen its position as an affordable tourist destination and attract visitors from around the world. With ongoing efforts and effective strategies, the country's tourism sector is poised for a promising future.