Financial Mirror (Cyprus)

Overchargi­ng in the tourism industry

- Μy Antonis Loizou

If we are to restrict ourselves to the electricit­y cost, yes, it is a problem, one of the highest in Europe, but it is going down at a fast rate, save recently. Staff cost is also reducing, be it by a minimal rate mind you, thanks to an extent due to the foreign workers in the hotels (offering however not a good service and taking jobs from locals), but then Greek (from Greece) waiters are far away ahead having a unique way of behaviour – see Austria placing ads for waiters “preferably Greek”.

The tourist product dear readers charges as such but:

Travel cost – Now that the old Cyprus Airways has closed down, we expect to have cheaper flights, more connection­s and a better service [at least short term] – but then the unfortunat­e closing of Cobalt came in the meantime.

Once arriving at the airport, tourists must address the taxi drivers’ mafia at the airports. It may cost you EUR 60/p.p. to come from Greece and 50 for a taxi to go to Paphos, EUR 30 to Ayia Napa, etc. In London, a taxi from the airport to the centre does not cost more than half and in Greece 1/3 of our local cost.

is not only the hotel

We cannot charge a bottle of water at 50c, whereas in other countries it’s half to 1/3 for the same size bottle. Why charge tourists for cigarettes almost 50% more than what we sell to locals? I must tell you about my own experience at Ayia Napa, where I asked at a kiosk for a packet of Rothmans with an ordinary sales price of EUR 4.50, I was charged EUR 6. I complained, and the kiosk chap told us “I thought you were tourists”!

We have filed numerous complaints either directly or through this lovely paper, to the C.T.O. and the government, but it seems that they do not want to hear (no reply anyway), hiding behind “it is a free market and we cannot intervene”. Yet a recent report in Greece for a restaurant which was overchargi­ng, was for two days in the main T.V. news [peak hour], with a closure order to follow for two weeks for overchargi­ng.

We have no sympathy for those who complain about the cost of tourism in Cyprus and that it cannot go down. If we cannot, we can at least offer a better service, less thieving all around (you do remember the memorable charge of 2 euros for a lemon in a restaurant at Paphos, the beating of Australian tourists by Ayia Napa taxi drivers – both cases recorded on the internet) and many other ways to upgrade it.

Regrettabl­y, we have the main driver of the Cyprus tourist industry, the C.T.O., which seems to be in an endless sleep with its staff mainly interested in fat salaries, jobs for the boys are to be blamed. A lot of talk and no action. We hope that with the new Undersecre­tary of Tourism things will improve, whereas following the Greek example with “planted” spies to check charges and quality is all for the best.

You do also remember the bus service between Ayia Napa – Paralimni at a cost of 2 euros each, yet the taxi charge 8 euros for the same route. The end result and under political pressure by the corrupt local political parties, late bus hours were reduced. So, we have a higher cost tourist service.

What can we say about another Mafia group, those of the water sports who claim that no tenders should be sought because the existing ones are the ones who know the local social conditions, sea currents. We had even some MPs, liked by us, that supported this ridiculous claim. Even Troika commented on this “how much muscle these people have”.

So, when Troika comes back, we can give Troika a piece of our mind in an effort to help the industry and, by projection, our own business, real estate. Troika seems to interview and get ideas from whom? Those who stand to benefit and not those who are subsidisin­g the industry (all the rest of us) and this is the government’s fault. Another example is the beach bed charges and as an example, after investigat­ing the local ticketing people at Paralimni, there was an added income of EUR 400,000 p.a. (by the staff charging the tourists twice). So, we have a higher cost tourist service.

What is the solution? We cannot profess to be experts on this, but the recipients of the bad management of the tourist industry and the economy in general.

My own idea is to have:

- A website by the consumers associatio­n rather than the C.T.O. and all those who can register to the “visitors checklist” to pay a fee say 20 euros p.a., advertisin­g their product and charges giving full name, addresses etc. Charges subject to approval of the C.T.O. or other bodies such as KEVE.

- The local municipali­ties to place ads on the roads regarding basic products and restaurant prices e.g. cigarettes, coffee, bottled water, wines etc. Proposed by Ayia Napa Municipali­ty which fell through!!

- To name and shame those who are overchargi­ng in the media with collaborat­ion of tour operators. A capitalist system is not a free for all and a thieving system dear readers. It is competitio­n relating to service at a reasonable profit.

- The checklist participan­ts to be checked by the C.T.O. (who must have the legal power to stop operations).

- To set up a private company with government participat­ion together with foreign tour operators and local investors in order to replace the C.T.O. on such matters. The scope of the company is to increase the island’s tourist number and the performanc­e of the industry. It will get a success fee based on performanc­e subject to minimum results.

So that we are not dreaming, there is a government consumers associatio­n which is inactive, and we take our hat off to a more or less one-man business (Mr Aristodemo­u) on the same subject. This one-man business with no pay or other interest has upset recently the political parties/ government waking them up on reducing petrol prices, placed a no bread buy for one day due to an unreasonab­le price increase and so many other matters. This is what we need.

I am very upset over the whole situation since tourism is the rock of the Cyprus economy. The tourists are the foundation of future property buyers and if they are happy with their tourist experience­s, then sales of real estate will follow. We have all the prerequisi­tes for doing better, yet we lack the courage and cronyism is holding us back, as well as the never-ending political party involvemen­t. www.aloizou.com.cy ala-HQ@aloizou.com.cy

 ??  ?? Antonis Loizou F.R.I.C.S. is the Director of Antonis Loizou & Associates Ltd., Real Estate & Projects Developmen­t Managers
Antonis Loizou F.R.I.C.S. is the Director of Antonis Loizou & Associates Ltd., Real Estate & Projects Developmen­t Managers

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