Aviation and Tourism industry on 24th March 2009 in Pafos, the International Air Carrier Association (IACA) airlines urged the Cypriot Government to take concrete steps to make airlines return to Cyprus. IACA represents 34 airlines serving the leisure industry and 26% of the airline market share in Cyprus. The association continues to be extremely concerned by the excessive high airport charges and infrastructure costs, as well as by the overall lack of efforts to attract to Cyprus as a tourism destination. Against a background of an alarming decline in incoming tourists, from the UK in particular, the subjects discussed with the represented governmental and tourism authorities included:

• The unacceptable increase of 34% in airport charges at Larnaca and Paphos airports, managed and controlled by Hermes
• The knock-on effect of the new charges which make Cyprus up to 115% more expensive than other competitive Mediterranean leisure-oriented airports
• The concession fee on Hermes revenues allowing the Government to take 33% or more than 29 million euro of revenues earned from the airlines without any financial risk or any commitment to re-invest it back into airport infrastructure
• The ongoing and repetitive seasonal congestion problems at Larnaca airport due to a mismatch between airport terminal capacity with arriving and departing flights, particularly at peak times
• The automatic indexation of airport fees
• The suggested measures to remedy the current negative trend in tourism traffic to Cyprus

Over the last 2 years, IACA with significant experience in all areas of aviation and tourism, warned the Government repeatedly about the negative effect of rising airport charges. Increased costs for airlines operating to Cyprus have shifted traffic to more competitive destinations that offer in many cases a superior quality of service for both airlines and tourists. Speaking after the meetings, Luc Geens, Manager Ground Operations, IACA, said: “Today, we regret to note that IACA’s past warnings have unfortunately been ignored by Cyprus, leading now to an alarming situation. In the current global economical crisis, worsened by a weak UK pound exchange rate against the euro, the Cypriot government should do all it can to encourage airlines to fly to Cyprus.”

“IACA fails to understand why Cyprus hesitates to come up with constructive long-term plans to win back tourists. The meeting revealed that the to-do list is long.” “IACA will be watching carefully to see if any concrete progress is made on its critical recommendations.”