Total passenger numbers going in and out of Larnaca and Paphos airports are forecast to fall just 1.5%-2% from 7.45 million last year, while Russian passenger numbers are seen dropping by 30%-35%, Hermes Airports’ Senior Marketing Manager Maria Kouroupi told the Cyprus Weekly in an interview.
“We have taken initiatives and there is growth from a number of other countries including the UK, Germany, Israel, Poland, Switzerland, Austria and even Ukraine,” Kouroupi said. “All of these small pieces add up to an improvement and fill in the gap left by Russia.”
About 20% of people flying in and out of Cyprus last year were Russians, second only to the British at 30%.
But the rouble has lost half its value over the past 12 months because of lower oil prices and sanctions over Moscow’s actions in Ukraine, and that is curtailing Russians’ spending.
To add to the potential woes for the airports, Cyprus suspended operations at Cyprus Airways after the European Commission ordered the struggling flag carrier to pay back over €65 million in illegal state aid. The last Cyprus Airways flight took place on January 9. Hermes Airports is owned by an international consortium of nine shareholders led by French construction group Bouygues Batiment International and including the Shacolas Group through Cyprus Trading Consortium.
Capacity has been filled
Kouroupi said the capacity lost after the collapse of Cyprus Airways has been filled, and even slightly increased, with Greece-based Aegean Airlines having taken most of it and basing four planes in Cyprus.
“There was a small gap of two months because all of the flights to continental Europe will start at the end of March, but starting from then the routes are served,” she said.
The difficulty the airports face is trying to maintain capacity in winter, when flight frequency and passenger numbers fall.
Kouroupi said Hermes Airports, the tourism authorities, hoteliers, tour operators, travel agents and the government all need to work together to revamp Cyprus’ image and encourage people to come and visit for more than just sun and sea.
She said the historical focus on blue sky and beaches means the island faces competition from cheaper non-EU holiday destinations like Egypt, Turkey and Tunisia. Cyprus should concentrate on giving itself an edge by emphasising that it can also offer other experiences such as hiking in the mountains, quirky villages, warm winter golf and wine tours, she added.
“We are working actively on trying to get all the stakeholders, including ourselves, aligned towards one direction to get Cyprus out there, get sustainability and extend the season,” Kouroupi said.
To that end, Hermes Airports attended the world’s biggest tourism trade fair ITB Berlin this month to discuss incentive schemes with airlines and try to encourage them to fly to Cyprus in winter. These incentive schemes are monetary and include rebates for new routes and increased frequency, as well as financial incentives for new winter routes.
The company has no plans for capacity expansion for now as neither Larnaca nor Paphos airport runs at full capacity. Larnaca has a capacity of 7.5m and saw 5.4m travellers last year, while comparable figures for Paphos were 2.7m and 2m.
Kouroupi said various committees and working groups meet regularly to discuss how best to revitalise the island’s image and attract visitors all year round.
“I can’t say we are there yet, but there is progress,” she said. “We need to identify the heart and soul of Cyprus and then package it in a new brand.”
Source: InCyprus
