Strategic Plan for Tourism 2010

As a developed tourist destination in an intensely competitive environment, Cyprus in on the receiving end of the effects of globalisation and the further development of the tourist market.
Competition has sharpened greatly both among new destinations and tourist enterprises and this has had repercussions on destinations which are subject to pressures, particularly in matters related to price.

Demographic, social and technological changes have definitively altered the international tourist market of the future, which can be described as mature, well informed and complex.
As a result of experience and education, tourists are generally more demanding, independent, active and have good knowledge of tourist destinations, and are characterised by constantly changing needs and expectations.

With over 30 years of experience in the sector of tourism Cyprus is called upon to make use the experience of the past and, within the newly emerging situation, to launch the new course of Cyprus tourism towards the 21st century.

Vision

The guiding vision of the Strategy for the next decade is:
"Cyprus: a quality tourist destination that will satisfy the visitor with various interests and quests and that will ensure the continuous improvement of the quality of life for the locals".
This vision will become a reality through a Strategy that focuses on sustainability development, which is equated to the concept of quality. Within the context of sustainability, the development of tourism will ensure the quality of the tourist experience, the natural environment and the quality of life of local population. This will be achieved by utilising available resources without depleting or exhausting them, thus enabling the destination to respond successfully to the current and future needs of both visitors and locals.

Targets

Maximization of social-economical benefits will be pursued through the increase of income from tourism, a target that will constitute the basic index of success of the strategic plan. The maximization of revenue from tourism will be achieved via the:
· increase of the per capita tourist expenditure
· increase of tourist arrivals
· increase of the length of stay
· increase of repeated tourism

A critical factor for successfully pursuing the target of maximization of revenue is for the approach to change, for the emphasis on the maximisation of arrivals to give place from now on to the maximisation of income. The main objective of income maximisation is pursued by setting growth targets and levels of priority to each of the component parameters "income" objective.

Repositioning

The reinforcement of the competitiveness of Cyprus constitutes a basic presupposition for the achievement of the objectives of the Strategy. Cyprus will pursue repositioning on the tourist map by projecting the advantage that differentiates it from its competitors. Its unique advantage, eg, its competitors was judged to be the great diversity of the tourist experiences to be had in a small geographical area:
"A mosaic of nature and culture, a whole magical world concentrated in a small, warm and hospitable island in the Mediterranean, at the crossroads of three continents, between east and west that offers a multidimensional, qualitative tourist experience."
The strategic effort for repositioning by 2010 is supported by three component strategies: the Marketing Strategy, the Product Strategy and the Quality - Value Added Strategy.

MARKETING STRATEGY
The Strategic Direction that the Marketing sector will be called upon to follow is focused and aggressive and its central goal is the development of selected markets and market segments which are more efficient and productive.

In the first years of implementation of the strategic plan emphasis will be placed on further penetration into existing markets/segments, in an effort to attract the most efficient type clientele. Subsequently, as the new product takes shape, through upgrading the current product and creating new ones, emphasis will shift to the differentiation of markets, that is to say, to the cultivation of new markets/segments.

Prioritisation of Markets and Market Segments
Based on the analysis, evaluation and prioritisation of the market segments which was carried out, the Marketing Strategy is focused on attracting selected motivational and demographic segments from priority geographic markets.

Communication Strategy
Communication Strategy aims at the creation of a clear and unique image and identity for Cyprus and to reposition the island on the international tourism market. The Communication Strategy proposes a rational use of advertising and various promotional and public relations instruments in order systematically to project a distinctive and unique image based on the repositioning of tourist Cyprus, and to target effectively the selected markets and their various segments. Ways are proposed for close collaboration with the private sector so that efforts at communication can be set within a common framework, on the basis of the repositioning of Cyprus, in order to achieve the aims and targets of the strategy.

Distribution
Through the Distribution Strategy, the greater part of the tourist traffic will continue to be channelled through the Tour Operators, with whom changes in the mode of cooperation will be pursued. The target is on one hand to enhance co-operation with selectively chosen Tour Operators so as to ensure the upgrading of the destination's presence in general brochures, its inclusion in specialised packages, expansion of specialised programmes etc., and on the other to strengthen the co-operation with small and specialised operators as well as Tour Operators which specialise in the destination.

At the same time efforts will be made to explore alternative ways to organise and book trips other than through tour operators, by the establishment of a destination management system aimed at increasing individual tourism.

Information / Research
A successful implementation of the strategy presupposes a system of collection, processing, evaluation and data dissemination, monitoring and evaluation of the marketing information. The prompt, accurate and systematic dissemination of information to all tourist partners constitutes the main target of the Information / Research Strategy.

Marketing Organisation
Finally, the Marketing Strategy proposes changes and improvements in how the destination organises its marketing, and the establishment of mechanisms for co-operation among those involved in tourism on the national and regional levels.

PRODUCT STRATEGY
The Product Strategy has as its cornerstone the sustainability of the tourism sector and invests on the comparative advantage of Cyprus in a way as to meet the preconditions and develop in a short time, the tourist product that will ensure the repositioning of Cyprus on the tourist map. In turn this will enable it to attract tourist clientele from the selected market segments.

The Core Themes
The development of the tourist product will evolve around the main two core Themes: Culture and Environment. Culture, given the dimension attributed to it, includes the "human" factor, as well, upon which the identity and the uniqueness of the destination is dependant.

The Product Strategy covers all aspects of product development, i.e. Special Interest Products, Accommodation, Catering, Basic Infrastructure, Inland Transport, Shopping and Merchandising. Moreover it encompasses Regional Strategies through which the regional product will be developed based on the particular characteristics of each area, enabling each one to develop and project its own identity and image.

Special Interest Products
Product Strategy- Special Interest Products, focuses on the creation of products that can project the uniqueness of Cyprus as a destination. These products evolve mainly around the two core themes, be culture and environment.

The "special interest products" will act as attractors to the destination, which at the same time will offer opportunities for activities and entertainment (things to do and see). Top priority Products are the Themed Routes, Museums, Agro tourism, National Forest Parks, Nature Trails and Events all of which will be given maximum priority. Other high priority Products, catering for the needs of specific market segments are Marinas and Football Grounds, while Golf Courses, Theme Parks and others constitute special interest products of medium priority.
Accommodation

Regarding Accommodation the Product Strategy aims at encouraging new types of accommodation facilities (e.g. mixed use destination resorts), at upgrading the existing tourist accommodation establishments, at developing small scale accommodation units of particular character and ambience and moreover, at rationalising the existing classification system, discarding certain categories, and the updating of the legislative framework.
It is estimated that a number of 131,000 beds, in total, is required to meet the projected demand for accommodation by 2010. As such, the strategy aims at the creation of 22,000 new beds in the following categories: mixed use destination resorts, 3*-5*hotels , tourist villas, tourist villages and small units of particular character.

Catering
The aim of the Strategy for the catering sector is to offer a variety of value for money food and beverage services, so as to satisfy the varying tastes of visitors.
The Strategy will focus on the revision of the statutory framework that governs the establishment and operation of all Catering Establishments which in general suffer from standardisation, lack of authenticity, low levels of service and other similar problems, and also on projecting the traditional, national and regional cuisine of Cyprus and the warm hospitality of its people.

Basic Infrastructure
Top priority issues include the expansion and upgrading of airports. This will relate both to a capacity point of view and the provision of high standard general and specialised facilities and services, as well as the improvement of ports so as to be used not only as access points of entry but also as places offering services of high standards to cruise passengers.
Furthermore, the improvement and upgrading of the road network is of crucial importance, since the uniqueness of the Cyprus tourist experience lies in the degree to which visitors are able to travel with ease and safety throughout the island. What is also of great urgency is the upgrading of pavements and street furniture, and the completion and expansion of the pedestrian paths and cycling tracks network, especially in tourist areas.

Inland Transport
The need to improve inland transport means is absolutely interwoven with the strategy to redefine and reposition Cyprus on the tourist map. For this reason the aim of Transport Strategy is to ensure better organisation and upgrading services and to enhance communications with new means of transport suited to visitors` needs.

Shopping and Merchandising
Merchandising can be a very effective means for promoting and projecting the culture of Cyprus as well as a means to enrich the product. Therefore, it is of vital importance to take measures that will orientate the current supply of standardised, non-traditional products towards the supply of authentic Cyprus products that will give the visitors increased opportunities for shopping in various areas of Cyprus.

Regional Strategies
Within the framework of Cyprus' repositioning strategy each region will be called upon to prepare its own Regional Strategy. Each region will have its own vision regarding its tourist growth and will focus on developing the right product to fit the needs of market segments it will choose to target.

QUALITY AND VALUE-ADDED STRATEGY
The Strategy for Quality and Value Added in tourist experience seeks to contain the erosion of the competitive position of the tourist sector.

The offer of a better "value for money" and the improved relation between quality and price will be pursued through a number of efforts which are: The maximization of the visitor's satisfaction, the provision of a rich and diverse tourist experience, the cultivation of a distinctive character and identity for the destination, the supply of broader and more attractive tourist facilities and infrastructure maintained at high levels of quality, the increase of productivity and efficiency of the sector, and the use of local human resources to meet the sectors needs.
The critical success factors of the Quality and Value Added Strategy are: Quality (establishing standards, total quality systems, quality mentality), the development of human force (balance of supply and demand, education and training of tourist professionals as well as of other professionals who are directly or indirectly involved in tourism), and finally the issue of pricing and pricing policies (price-quality correlation, medium-term / long-term approach, timely and accurate information, collective approach and cooperation to reinforce negotiating power).