ECONOMY: Cyprus warns travel industry that price hikes will affect Cyprus tourism

Increases in the price of air tickets will have a negative effect on Cyprus’ air connectivity with an immediate impact on tourism, Transport Minister Vassiliki Anastassiadou warned.

The economics of air connectivity are fragile and subject to the continuous changes of market dynamics, said Anastassiadou.

Any additional cost to air tickets will have a negative effect on air connectivity, which is a fundamental factor for tourism development, she added.

She told the 29th ACI (Airports Council International) Europe Assembly, that Cyprus supports the ongoing efforts that must be implemented to address the challenges posed by climate change and supports sustainable development of international air transport.

More than 300 aviation executives from over 40 countries met in Limassol for the event, hosted by Hermes Airports.

Anastassiadou said air transport stands at a critical crossroads between sustainability and development and for this reason climate change is of strategic importance for the sector.

The EU’s contribution is of vital importance in terms of the measures that need to be taken to address greenhouse gas emissions at global level and any additional taxes on air transport must be evaluated cautiously.

The minister argued that Cypriots seek affordable flight tickets more than their fellow Europeans since air transportation is the only available way of connecting with other countries.

We should secure sustainability of international competition within the European air transport sector and at the same time, take into account the particularities of the member states.

Despite Cyprus air connectivity being at a satisfactory level, there is room for improvement, not only by attracting new markets, but also by enhancing existing markets with big prospects, such as Germany, France, Ireland and Italy, said Anastassiadou.

In collaboration with Hermes Airports, the Government of Cyprus provides an incentives scheme for airline companies that have managed to improve connectivity as well as the country’s economic development.

She said air transportation in Cyprus has recorded a steady and continuous increase in recent years, as the number of passengers at the island’s two international airports in Larnaca and Paphos reached approximately 11 million in 2018.

Source: The Financial Mirror