Tourists spend over €1.5 billion, setting new high

The most recent data from the Statistical Service regarding tourism revenues are confirming expectations, as expressed by Deputy Minister of Tourism Kostas Koumis in a recent interview with "K". It appears that this year could potentially set a new record for tourism revenues.

In July alone, tourists contributed approximately €454.6 million to the local economy through their expenditures on accommodations, entertainment, dining, shopping, and transportation. This figure is quite promising, especially when compared to 2019, indicating a positive trend.

What's particularly noteworthy is that throughout the first seven months of 2023, tourism revenues not only surpassed the figures from the same period in 2022 but also exceeded those of 2019.

To be precise, the total estimated tourism revenues from January to July 2023 stand at €1,544.7 million, marking a 19% increase compared to the €1,217.4 million in the corresponding period of 2022 and an 8% rise over the €1,425.2 million recorded in 2019 during the same timeframe.

For July 2023 alone, revenues reached €454.6 million, a 19.1% increase compared to the previous year's €381.7 million for the same month. Interestingly, even when compared to July 2019, this year's performance exceeded expectations by 7.5%. This suggests a consistent upward trajectory in revenues, with further growth anticipated in the upcoming months.

Notably, earlier reports from "K" had indicated that economic analysts were estimating this year's annual tourism revenues to surpass 2019 figures by approximately 8%, approaching the €3 billion mark.

The next few months, particularly August, September, and October, are expected to provide a significant boost to revenues due to favorable tourist performance in terms of arrivals. While official statistics are not yet available, it's encouraging to note the substantial passenger traffic at Larnaca and Pafos airports, with over 1.5 million passengers recorded in August and 1.314 million passengers in September, indicating a positive trend.

Several markets have played pivotal roles in driving up revenue. Notably, markets like Israel, Lebanon, and Switzerland, as well as the UK, Norway, the Netherlands, and Sweden, have demonstrated high per diem spending and average per capita spending, contributing significantly to revenue growth.

On average, tourists stay for approximately 9 days, with an average per capita expenditure of €867.96 and daily spending of €96.44, surpassing the targets outlined in the National Tourism Strategy.

Breaking down the contributions from major markets, the UK market stands out with €177.3 million generated in revenue, thanks to a substantial number of tourists and their average spending, which exceeds €1,000. Israel, despite shorter holiday durations averaging around five days, contributed around €43 million to Cyprus' revenue.

Sweden followed with approximately €23 million, while tourists from Poland and the German market contributed an estimated €18.2 million and over €17 million, respectively. France also made its presence felt, generating revenues of around €9.6 million in July, with the Austrian market contributing a similar amount. Switzerland's market added €13.2 million, and the Lebanese market contributed approximately €7 million.

The increase in tourist spending can be attributed to various factors, including inflation and rising costs of products and services. Additionally, the inclusion of new markets, such as France, and growth in existing markets like Poland, Germany, Switzerland, and Sweden have contributed to this upward trend.

Furthermore, the number of arrivals from markets with smaller shares has doubled compared to the previous year. Interestingly, there's been a shift towards more individual tourists compared to those traveling with tour operators who typically opt for all-inclusive packages. In many cases, reductions in holiday spending are a result of shorter vacations rather than decreased per capita expenditure.

These trends in tourism revenues paint a positive picture for Cyprus' tourism industry, with potential for continued growth in the coming months.

[This article was translated from its Greek original]