A group of Cyprus tourist officials have held an emergency meeting to discuss the best ways of dealing with the crisis facing the tourism industry, following the news that there has been a considerable drop in bookings for 2009.
The meeting of an ad hoc committee, under Cyprus Tourism Organisation (CTO), President Panos Egglezos, was held yesterday to analyse the prospects of the industry and to exchange views on the best action to be taken.
Proposed measures include reducing VAT on tourism services from eight to five per cent, the abolition of night tax on hotels during the winter season and the reduction of this tax by 79% during the summer season.
The government is expected to ask the electricity authority to reduce rates for hotels and will offer further incentives for investment in tourism.
The group of officials have decided to submit their list of proposals to the Ministry of Commerce, Industry and Tourism.
Mr Egglezos told a press conference that the world financial crisis will “most probably” affect Cyprus’ tourism industry, at least during 2009.