June 2011 - Posts

We live in critical times, looking ahead.
Let's not be mistaken, our obsession is also with the Cyprus Tourism Organisation, because it has been sitting in the middle of tourism development for too long, but that's a story for a different post.
Let me not distract you from the point at hand, understanding the importance of recent developments in our sector and therefore our economy. From the picture above. Forrester Research makes a graphical representation on how to understand and interpret the ages as they have developed in different economic times where companies have been succeeding themselves or renovating themselves to play an important role accordingly.
Last week we highlighted in various articles the importance of the Hermes Airports contributions and what I do wish to highlight here, is not the tremendous efforts and investments which are praiseworthy, but it's having resolved the single most important impediment for our industry to have been able to move ahead. Hermes Airports strategically placed their efforts for the last year in resolving 1 single most problem - that of distribution, according to this new understanding about customers.
As we look forward with the realization that 2003-2010 plans have completely overlooked resolving a key challenge dating back to previous era, how can we be so confident that the current service model that has been used for the last 30 years, has actually resolved the challenges of an Age past, that of connectivity and information flow, and let alone being prepared for the challenges that are coming ahead.
With this issue in mind, the strategic tourism plan made out by the Cyprus Tourism Organization for the next 5 years, should the tourism sector not join in and help out, just as Hermes Airports is doing so that we are not stuck with challenges Ages goneby.
It's a new age where carrot (cto budget) and stick (political parties) reminds us that this not what will help us to connect with customers, who are those that will ensure we move forward in the business of tourism. And you why are you in the business of Tourism. How are you going to connect?
Video Credit: Short version of Jessie J -Price Tag - expressing adequately as to why sometimes we do the tings we do despite contrary logic.
Hermes thankful for the successful implementation and management of Cyprus National Airports

The new airports have heralded a return to
tourism growth for Cyprus and with the focused action of Hermes Airport, Cyprus Tourism is seeing a growth of arrivals due to new airlines unlike any period in the 30 years of Cyprus Tourism. The opening of
new source markets for tourism in western, eastern, and central Europe,
Scandinavia, Russia, and the Middle East has resulted in a Traffic in 2010 increased by 3.2% and
has grown by over 5% in the current year, and so despite lack luster performance of national carriers.
The strategy of commercial incentives combined with additional support from the
stakeholders is allowing for longer term commitments, unlike previous negotiation led by Cyprus Tourism Organisation which resulted in too much seasonality, uncertainty from year to year and too much dependency by large scale tour operators that eroded operational margins of the tourism trade.
It's undeniable that the increased tourism to Cyprus will gain greater weight from the winter and off season travel, due to the more frequent introduction of new routes by cost carriers such as EasyJet, Wizzair,and Ryanair.
In the words of Hermes Airports CEO, Mr. Alfred Van der Meer during a conference honoring the 5 years of successful development, "The new Larnaka and Pafos international airports are perhaps the best example Cyprus has of the value and benefits to be derived from public private partnerships". Surely in the case of Cyprus Tourism, this is an exception that confirms the rule.
In mutually beneficial complicity, Tourism authorities rush for refuge behind infrastructural developments to divert attention from the negligent management of national tourism assets in Cyprus
During the annual conference of travel agents in Cyprus (ACTA), Mr. Paschalides, minister of commerce, industry and tourism, urged the tourism trade to focus on building the winter season. In continued efforts to undermine deficiencies in the service based industry, Mr Paschalides pointed towards the numerous works as, accomplishments, which will further improve the tourist infrastructure. Among developments outlined he pointed to the refurbishment of the International Conference Centre, ongoing works at the Limassol Marina and new golf courses planned in Larnaka and Pafos.
What it is for sure, is that nobody may have informed him about the Tourism and travel competitiveness report published earlier this year by the World Economic Forum, where Cyprus without further infrastructural investments, was already leading world tourism industry with outstanding performances in its tourism infrastructure.
On the another hand, Cyprus Tourism Organization head also reassured the travel agents stakeholders, that the new design of strategy plan 2011-2015 was well underway of being implemented.

By the looks of 155 page report, especially with the personalised template design, it will not be getting high marks for an inspiring marketing read. If we are to judge by this organisational planning document that is to lead the Cyprus Tourism Organisation into next decade, one is bound to be more skeptical about the expectations building up for the next 5 years.
With these developments and despite the calls for unity and collaboration, it isn't surprising that the observations of Mr. Mantovani, president of the travel agent association, resonate more than ever when highlighting public interference of national air carriers, as examples of improvisation by Tourism Authorities.
In contrast to the opinion of Mr. Paschalides, I believe that Tourism stakeholders do have a choice, in how they will unite and collaborate.
One thing for sure and a good start is get back to earth and put our heads together, because it is evident, from past track record, that neither Mr. Paschalides nor Cyprus Tourism authorities seem to be able deliver upon expectations.