The Director General of PASYXE, Philokypros Roussounides, and the President of the Association of Travel and Tourist Agents (ACTTA), Charis Papacharalambous, have revealed that approximately 30,000 tourists who were expected to visit Cyprus are impacted by the bankruptcy filing of travel provider FTI. This affects around 160 hotels and other businesses in Cyprus that collaborated with the Group, including transport services and travel agencies.
Impact on Tourism and Local Businesses
Roussounides described FTI as a “giant” in the German market and other German-speaking markets, bringing tourists to Cyprus from Germany, Poland, Switzerland, Austria, and the Netherlands. “It seems that this year, we were expecting around 30,000 tourists to our island, who would have stayed in 160 different hotels,” he said. Despite the seemingly small number, the development is significant as it adds to other challenges the industry is facing, such as the war in Israel, the economic recession in the UK, upcoming elections, and major sporting events.
On the other hand, ACTTA President Charis Papacharalambous stated that the development is “clearly negative for the industry,” although he believes the direct impact on customer arrivals will be small. He explained that the numbers from the German market are relatively small compared to other countries, with all German tourists in Cyprus amounting to 200,000 annually. Additionally, there are many travel organizers in Germany, so the figures are not overwhelming.
Financial Concerns and Bookings
When asked about the impact on travel agencies in Cyprus that collaborated with FTI, Papacharalambous replied that the Group had an office in Cyprus and other partners beyond hotels, including transport companies and other travel agencies. “There is an issue with outstanding amounts, and that is where the biggest problem lies, especially regarding payments for services that have already been provided,” he noted.
Roussounides mentioned that bookings made through FTI are being canceled. Efforts are being made by other major travel providers in Germany to cover part of these trips, but success has yet to be seen. Several hotels are exposed to debts of tens of thousands of euros. Asked if they intend to seek state compensation, he said, “We do not foresee requesting any specific support. We need to focus on the tourism industry, provide incentives and flexibility to businesses.”
Booking Trends and Future Prospects
Roussounides reported a contraction of around 10% in bookings compared to the same period last year. He reiterated that it is a challenging year and hopes there will be no further contraction. The focus remains on maintaining last year’s numbers despite these setbacks.
Papacharalambous added that most bookings have already been transferred by third-party collaborators. For direct sales by FTI to consumers from Germany, Switzerland, Austria, and France, these consumers are covered by the Travel Organiser Insolvency Fund. He clarified that while new arrangements might not necessarily be for Cyprus due to changed pricing policies, he believes most will still make new bookings.
Domestic and Outbound Tourism
Regarding domestic tourism, Roussounides noted that it is performing at satisfactory levels, historically accounting for around 7-8% of the total. Papacharalambous added that Cypriots continue to travel abroad, with numbers expected to be close to or slightly higher than last year’s record figures.
He advised consumers to consider experiences from the FTI closure and ensure they book with approved travel organizers who have insolvency coverage. Direct bookings lack legislative protection if something goes wrong with service providers.
