Orhan Tolun, President of the Cyprus Turkish Travel Agencies Association (KITSAB), emphasized the decline in tourism’s contribution to closing the country’s foreign trade deficit, which fell from 60 percent in 2019 to 35 percent in 2023. Speaking on the “Gün Ortası” program on KIBRIS TV, Tolun noted that the tourism sector has yet to return to pre-pandemic levels, attributing the drop in revenues to a decline in the number of foreign tourists and shorter stays.

Tourism’s Contribution to Foreign Trade Deficit Falls

Tolun highlighted that in 2019, tourism revenues played a significant role in balancing the country's foreign trade deficit. He pointed out that while imports in 2019 reached approximately $1.7 billion and exports were around $125 million, tourism revenues of $960 million covered about 60 percent of the trade gap. However, in 2023, despite imports increasing to $2.85 billion and exports rising to $175 million, tourism revenues remained stagnant at $960 million, covering only 35 percent of the deficit. "There is a big decline," Tolun remarked, emphasizing the need for a closer examination of tourism's role in the economy.

Changes in Tourist Stays Post-Pandemic

Tolun also discussed shifts in the tourism market, particularly the decrease in foreign tourists' stays and an increase in tourists from Turkey. He noted that while the overall number of tourists rose by 4-5 percent in 2023 compared to 2019, there was a 6 percent decrease in the average length of stays. “In 2019, tourists stayed for an average of 3.6 nights in Northern Cyprus, but now that figure has dropped to 3.2 nights,” Tolun explained. He added that while foreign tourists previously stayed for about 6 nights, the number of these tourists has decreased, and Turkish tourists, who now make up a larger share, tend to stay for only 2.2 nights.

High Costs Undermine Competitiveness

Tolun further pointed out that the high cost of living and increased accommodation prices have made Northern Cyprus less competitive in the tourism market. He explained that room prices, which were around 100 Euros in 2019, have now risen to 250-300 Euros, marking a 200-300 percent increase. In contrast, he noted that prices in Turkey and Southern Cyprus have increased by only around 15 percent. “A tourist who could stay here for 10 nights with 1000 Euros in 2019 can now only stay for 5 nights,” Tolun stated.

He attributed the price increases to rising costs within the country, including personnel, energy, and food and beverage expenses. These rising costs, according to Tolun, have forced hotels to increase their prices, resulting in a decline in the sector’s competitiveness.

Tolun’s remarks underscore the ongoing challenges in Northern Cyprus’s tourism industry as it strives to regain its pre-pandemic strength and navigate the effects of high costs and shifting tourist patterns.

Source: Kıbrıs Gazetesi