The European Union, Cyprus and Tourism

Since May 1^st 2004, the Republic of Cyprus has been a full member of the European Union and, consequently, it has become part of a wider spectrum of geographical borders. More specifically, the Union promotes freedom in the movement of goods, people and capital. In particular, for Cyprus, entrance into the European Union was viewed as the way to end the political instability and the division of the island. Before its accession, Cyprus had to be harmonized with the European Acquis in order to convince its European partners that it met all the requirements to become a member. On May 1^st of this year, Cyprus completed eleven years of membership in the EU. Unfortunately, the country is facing one of the most difficult times in its political and economic history since the Turkish invasion of 1974. Traditionally the tourism industry was the backbone of the economy whereas, at present, it requires restructuring and has to face all the challenges caused by the complex relations with the various stakeholders. This article aims to present the European Union's relationship with the tourism industry in Cyprus.

Every year the European continent is visited by 563 million tourists and has $496 billion revenue (World Tourism Organization 2014). It is the most popular continent in terms of tourism arrivals and revenues. This is because of its geography with a border proximity that has formed a mosaic of countries with different cultures, traditions, natural beauty and gastronomy. The idea of the political and economic union of the European continent’s countries contributed positively to the tourism industry with the improvement of the quality of services and the visitors’ profile.

The Treaty of Lisbon for 2000–2010 included tourism among the priorities for the creation of new jobs ('Enhancing tourism's potential for employment’ [COM (1999) 205]), while promoting four pillars of strategic actions:

- Fostering the exchange and dissemination of information

- Improving training and qualifications in the tourism sector

- Improving the quality of products and services related to tourism

- Promoting environmental protection and sustainable tourism development

In 2010 Europe's vision was reflected in a new strategy namely 'Europe 2020' [COM (2010) 2020] with the aim to increase employment, interdisciplinary research and development, climate / energy, education, social inclusion and poverty reduction.

Cyprus is the easternmost point of the enlarged Europe and must dynamically and actively act upon the strategic objectives of Europe 2020, especially the strategy relevant to the tourism industry. The arrival of European low-cost airlines (Ryanair, Easy Jet, Blue Air) on the island and the subsequent introduction of new routes and cheap fares created and can create new mobility opportunities. Air connectivity is a prerequisite of the success of the tourism industry; hence the introduction of new routes will stimulate the interest of European citizens to choose the island for holidays. Cyprus is also being promoted in the official European online portal for tourism (see visiteurope.com).

The European policy on tourism encourages international cooperation; research and innovation, successful entrepreneurship for SMEs (Small Medium enterprises). Undoubtedly, a pertinent strategy on tourism within the guidelines of the European policy will contribute positively and will enable the economy of the island to recover more quickly. Thus, the role of the Cyprus Tourism Organization (CTO) as the incumbent governmental body for the development and promotion of the tourism industry is important. The CTO’s new tourism policy (2016–2020) should become a feasible scenario with the aim of repositioning the island on the tourism map by promoting all-year tourism activities and ensuring value for money. In addition, the national policy should be aligned with the European policy in order to seize all the potentials of the membership. Undoubtedly, a successful tourism industry has a multiplier effect on all sectors of the economy and ultimately will enable Cyprus to recover from the financial crisis.

Dr Sotiroula Liasidou

Assistant Professor/ Programme Coordinator

Hotel and Tourism Management

Intercollege Limassol

Article Published in Accountancy Cyprus Magazine - Issue 119 
Photograph:  All rights reserved to the photographer