Despite breaking one record after another when it comes to tourist arrivals, Cyprus has seen tourists spending significantly less per person than previous years while on vacation on the island.
While 3,239,760 tourists have visited the island in the first nine months, recording an increase of 7.9% compared to the same period last year, tourists are spending on average close to EUR 200 less compared to 2013.
According to figures published by Stockwatch, tourists are spending on average EUR 695 compared to 870 back in 2013, essentially 20% less, keeping in line with the negative trend of the past five years.
Chairman of the Cyprus Tourism Organization Angelos Loizou told Stockwatch that the reduction in per capita income is a global phenomenon.
"There is a global crisis from 2007-2008 which is to continue. People are becoming more and more selective, looking for the cheapest options, while becoming more demanding," Loizou said.
In 2008 the average tourist spent EUR 745 in Cyprus. Expenditure declined in the following years and exceeded €800 in 2013 to start declining again.
The trend is that tourists opt for making more often trips while spending less money, Loizou pointed out.
The General Manager of the Cyprus Hotel Association, Zacharias Ioannides, told Stockwatch that spending per capita is decreasing because of the tendency for more frequent holidays rather than choosing a one-off holiday with a longer duration.
“Secondly,” said Ioannides “while foreign holiday budgets remain stable in their national currency, British and Russian spending in eurozone destinations appears lower due to the depreciation or weakening of their country's currency”.
Ioannides said a third reason behind the dip in tourist expenditure on the island is that this year, major competitive destinations such as Turkey, Egypt and Tunisia have made a dynamic comeback.
“Due to the unprecedented phenomenon of the increased competition and over-supply of rooms in the Mediterranean, reduced prices at hotels were recorded even during the peak season in an effort to ensure filled capacity,” he said.
However, as the stakeholders in the Cyprus tourism industry stressed, the fall in spending per capita cannot be taken as an indication that Cyprus is a cheap destination.
"Cyprus has been the second most expensive destination of the Mediterranean in recent years. So, one cannot claim that Cyprus is not attracting quality tourists,” said Loizou.
Moreover, the total income from tourist receipts is on the up and made a record EUR 2.6 bln last year.
