Cyprus Editorial: Airbnb will not bring in millions

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What Cyprus needs is a radical re-think of its tourism policy, by looking far ahead into the future and deploying a mid- to long-term strategy based on worldwide trends, changing needs of consumers, global warming and, above all, sustainability.


 
The first three are easy to identify as there are tens, if not hundreds, of studies and reports that the Cyprus Tourism Organisation could utilise, if it ever wanted to.
However, the issue of sustainability is a wide-ranging spectrum that basically includes all three previously mentioned categories, with the addition that we do things seriously, with respect to the traveller-consumer and by preserving and promoting our heritage, identity and, of course, environment.
If we get the formula right, then not only will tourist numbers continue to grow again, but more importantly, holidaymakers will spend more on their visits to the island.
Recent arrivals figures, which the Tourism Minister and other officials frequently blurt out, are not reliable, as we do not know if these numbers can be maintained over the years, while witnessing a steady decline in per capita spending.
The ‘quality tourism’ that everyone has been talking about will never get here unless we get our act together. Just by building a mega-casino resort does not mean that big-spenders will come in droves. Neither did passenger traffic boom when we built two new airports, and the same applies to ‘cruise terminals’. In other words, if you don’t have the infrastructure to promote the nicer things about Cyprus, such as wine, food, history and hospitality, then why should tourists in their right mind choose the island for their holidays? Is it just cheap all-inclusives or budget weddings? Hardly not.
But what the CTO should also do at the same time is somehow regulate the accommodation sector, not by re-introducing some of the ludicrous requirements of the past (eg. area of room, number of sockets or fridge size determining the star-class of hotels or apartments), but by putting the whole industry in order.
The new trend for self-operated accommodation (vacation and rental sites such as Airbnb) is spreading around the world, but it is most successful where there is regulation, owners declare their income and pay their taxes, and where accommodation demand is very high.
Enjoying almost three seasons of record tourism, Greece has now decided to chase the unregulated holiday rental properties, as it has discovered that is losing about 300 mln euros in revenues every year.
Considering the proportion of beds and arrivals in Cyprus, then it would be fair to say that the government is loving in the region of 40-50 mln euros a year, an amount that could be better spent on marketing Cyprus properly, and not on the walls of a train station in a low-income area of London, or in pissoirs in Paris.
Holidaymakers who choose to rent villas and apartments from the likes of Airbnb, have no guarantees of safety, are unaware of the absence of insurance cover and have no way to secure their money back if they are dissatisfied.
On the other hand, regulated accommodation providers and their supporting tour operators have to dish out hundreds of thousands, if not millions, in bonds.
It was nice while it lasted, but the government has been duped by the greedy developers who sold villas and apartments knowing that these would go on the holiday rental market.
This nothing more than tax evasion and the CTO and the Ministry of Finance know all too well. Bur when will they do anything about it?