The Association of Cyprus Travel Agents (ACTA) called for emergency measures to save tourism, as figures showed a plunge in arrivals of 11.6 per cent from Britain last month. ACTA said the situation was likely to worsen after forecasts from the World Tourism Organisation yesterday predicted a 9.0 per cent reduction in the number of Europeans who will holiday next year due to the credit crunch and looming recession. Last month, total tourism to Cyprus fell 3.2 per cent year on year. The September fall, the second consecutive drop, was due to a significant reduction in the arrival of British tourists.

Britain is the island’s second biggest market, accounting for well over 50 per cent of all 2.4 million or so arrivals. In September, arrivals from Britain slumped 11.6 per cent compared to September 2007. Decreases were also recorded from Greece, some 3.5 per cent, and Germany 2.4 per cent. Russian arrivals continued to increase, however. Last month, tourism from Russia jumped 13.4 per cent, while Swedish tourist arrivals also increased 15.4 per cent. Russia has this year overtaken Germany as the island’s second biggest market.

Since the beginning of this year, tourism arrivals have fallen a total of 0.3 per cent over the first nine months of 2007. A total of 1,972,493 tourists visited Cyprus between January and September 2007, falling to 1,965,855 in the same nine months this year. The drop in September was the second subsequent fall in arrivals during peak season. In August, arrivals decreased by 3.7 per cent, and by 4.6 per cent from the UK.

The Cyprus Tourism Organisation and the government are working on a crisis plan for tourism for the remainder of 2008 and for 2009, as the international credit crunch and approaching recession loom over the island’s main European markets.

But ACTA said they were running out of time and any measures that needed to be taken would have to be in place before the World Travel Market in London in the first week of November in order to attract tour operators.

In a letter to President Demetris Christofias, ACTA suggests the abolition of VAT on all tourist services, and the reduction in municipal taxes on tourism businesses. “According to the World Tourism Organisation, the number of Europeans expected to holiday next year will drop by nine per cent and the holiday budgets of the remainder will be reduced,” the letter said.

The zero-rated VAT should apply to all tourism services, including hotels and air carriers, ACTA said. The cost of electricity and water to the tourism sector should also be reduced and transport should be fuel subsidised to reduce air fares to the island.

All businesses in the sector should also try to apply a moderate pricing policy, it added. “All proposals should be implemented or be announced as soon as possible and before the start of the World Travel Market,” ACTA said.