NEW INCENTIVES for airlines to boost tourism, including a reduction in landing fees, could bring in an extra 400,000 visitors next year and increase revenue by €400 million, it was revealed yesterday.
The initiative also includes a plan to boost winter tourism, expansion into new destinations, and an incentive for airlines that pledge to use either of the island’s airports for at least five years.
The incentives are to come into force immediately, Communications and Works Minister Efthymios Flourentzos said at a news conference yesterday after signing the deal with Hermes Airports.
“The incentives aim at boosting tourist numbers mainly from new markets through reduced passenger fees,” Flourentzos said. “We intend to put these incentives immediately into force. Passenger fees are considered too high, mainly by low-cost airlines”.
Under the plan, airport charges will be reduced bv €25 per passenger for airlines who bring in 250,000 or more visitors each year. The cost of the reduction will be borne by Hermes to the tune of 64.48 per cent and the government by 35.52 per cent.
“We believe that by implementing these measures [Cyprus] will be able to work in a more competitive way,” said Flourentzos, adding that the Cyprus Tourism Organisation (CTO) was also in full support of the measures.
Hermes’ honorary chairman, Nicos Shacolas, said that passenger flow through both Larnaca and Paphos airports should increase by 400,000 and tourism revenue by €400 million.
Flourentzos clarified that the new measures were in part the government’s response to low-cost airlines, which consider the airport fees too high. Ryanair is one such airline. However, he assured that the measures were aimed at all airlines without preferential treatment for low-cost carriers.
Flourentzos said that the measures were given an extra push due to calls from low cost Ryanair and Easyjet, which both wanted to increase their arrivals to the island.
Hermes chairman Iacovos Iacovou, described the agreement as one that was heading in the ‘right direction, which would aid tourism in Cyprus “under these very difficult circumstances.”
Iacovou said that they expect an increase in the flow of tourists from all countries but especially from Russia. “There was an increase in general from Russia during 2011 but we are expecting a significant increase from the Russian market over the next few years,” he said.
The catalyst for bringing more Russian tourists to Cyprus, said Iacovou, was President Demetris Christofias’ mediation with the Russian Federation to allow the airline Transaero to increase its flights to the island.
Cyprus Mail
