"One island, a world of options " INTRODUCTION Although Cyprus is a small island, it has managed to be wide spread known as a paradise destination for tourists all over the world. Especially in the last 20 years the tourism industry is growing rapidly, attracting more and more tourists every year offering them unforgettable holidays. IMPORTANCE OF TOURISM TO CYPRUS ECONOMY - Tourism accounted for 9. 7% of total gross value added (2001) - Tourism receipts CYP 1. 277 million which amounts 46% of the total foreign exchange of goods and services (2001) - In 2001 receipts form tourist accounted 22% of GDP - In 2003 travel and tourism is expected to generate 51. 2% of the total export - Capital investment in tourism is estimated at 20.

8% of total investment in 2002 - Tourist sector accounted for 59776 jobs, 15. 9% of total employment - In 2002 there were 90946 beds available in tourism accommodation - Tourists arrivals in 2002 were 2 696 732 and excursionist arrivals were 143 922 MAIN CHARACTERISTICS OF THE TOURISM INDUSTRY a) Domestic tourism -the latest study on domestic tourism conducted in 1995 revealed that some 46% of Cypriots take long holidays. Out of these 61% took their long holidays exclusively in Cyprus, 8% in Cyprus and abroad, while 31% chose to only travel abroad. In addition the domestic tourism represents the 1/5 of the overseas tourism.

b) International tourism-2696732 in 2002, mainly mass tourism, high level of importance, main part of the industry. c) Special tourism products: sea (11 beaches with blue flags), sun (all year time), excellent gastronomy (food, wine, fruits, sweets), attractions (theme parks-aquarium, dinosaurs park, camel park-, water parks, events, festivals, nightlife, archaeological monuments, hospitality of the locals, culture. EXCELLENT ACCOMMODATION (20 5 star hotels, 54 4 star hotels, spa resorts and many other types of accommodation. EXCELLENT LEISURE FACILITIES (18 holes golf courts, indoor heated swimming pools, sport facilities etc.

) d) Seasonal tourism e) Geographical concentration- 4 main cities: Nicosia 206 200 p Limassol 161 Larnaca 72 000 p Paphos 47 300 p coastal region - 40% of total population - 57% of the total urban population - 90% of the republic's tourist activity - 93% of the tourist accommodation. tourism is largely based on hotel capacity in coastal areas. f) Maturity of the industry-tourism growth after independence of Britain in 1960 - big growth in tourist arrivals (1985-827937, 2002-2696732), accommodation capacity (1985-43346, 2002-90946) and quality, number of employees in the industry (1985-9550, 2002-59776). - industry is steel growing - the industry is strongly supported the by government, other related industries, EU (funding). g) Degree of diversity of tourism products -summer tourism -winter tourism (mountain resorts) -conference tourism -sport tourism -agro tourism (rural tourism) -ecotourism (nature) -yachting (4 high quality marinas) -adventure tourism (extreme sports) -cruises (middle east Mediterranean) ROLE AND SIGNIFICANCE OF THE GOVERNMENT INVOLVEMENT IN THE TOURIST INDUSTRY a) Vital step - the establishment in 1969 of the Cyprus Tourism Organization (CTO) b) CTO has drawn a strategic plan for tourism for the period 2000-2010 c) the main targets of the plan are: increase of the per capita tourist expenditure, improvement of seasonality, increase of tourists arrivals, increase of the length of the stay, increase of repeated tourism. d) Government's funds.

e) Government's provisions and easements to the corporations and developers of the industry. (low taxes, tax allowances) f) promotion of tourism programs (agro tourism, conference tourism) S. W. O.

T ANALYSIS OF THE INDUSTRY Strengths: - coordination role of the CTO, developed a long-term strategy, trend towards quality instead of quantity -well organised travel agencies -hotel infrastructure is well developed -quality and quantity of accommodation -ideal weather, san, sea, sand -food processing sector is highly modernised -easy to communicate -safety -high level of hospitality and friendliness -countryside (winning award for agro tourism) -easy accessibility -low taxes Weaknesses: -the strategy of the CTO is not very consistent -not enough well-educated employees -inflexible working hours -degree of cooperation and coordination within related sectors -seasonal concentration during summer -low-middle class tourists -Cyprus political problem Opportunities: -accession of Cyprus in the EU in May 2004 -open skies policy -infrastructure investments in all sectors -upgrading of accommodation -development of other forms of tourism -low taxes -Cyprus' intends to attract more sophisticated tourists, high income tourists Threats: -increased price competition from other tourist organizations -other destinations with lower prices and higher degree of cooperation within tourism related sectors -external events (shocks) - introduction of euro could result in rising prices CONCLUSION: -Industry is still growing -large number of consumers -development of accommodation and infrastructure -great opportunities (solution of Cyprus problem, EU) -guaranteed investment revenue TAKE THE OPPORTUNITY! INVEST IN CYPRUS! Once more, well met in Cyprus! (Shakespeare, Othello, act 2) References -Mediterranean tourism. (Facets of socioeconomic development and structure. ) Y. Apostolopoulos, P Loukissas 2001 - web - web - web -Tourism on Cyprus. Annex 2 of the contract ETD/00/06/503332 IBM.