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Tourism Management 26 (2005) 79–94

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doi:10.1016/j.tou

An institutional appraisal of tourism development and planning:the case of the Turkish Republic of North Cyprus (TRNC)

Habib Alipour*, Hasan Kilic

Eastern Mediterranean University, School of Tourism and Hospitality Management, Famagusta, TRNC Gazimagusa, Via Mersin 10, Turkey

Received 18 May 2003; accepted 15 August 2003

Abstract

This paper aims to explore and analyze the structure of the tourism sector in the Turkish Republic of North Cyprus. It identifies

the principal institutions and organizations responsible for development and planning in this sector. In order to achieve this goal, the

first section of the paper offers a historical overview of the evolution of the tourism sector in Cyprus up to 1974. The second section

of the paper examines the post-1974, period, when the island was divided into separate geographical and political entities. The paper

focuses on Northern Cyprus (TRNC), as a separate political and economic unit independent of Southern Cyprus (the Republic of

Cyprus) and it pinpoints the main variables that have caused the tourism sector in the North to lag behind the South. Among these

variables, internal factors (i.e., institutions) are of prime concern in this study as they have proven to be profoundly inefficient and

irresponsive, which has resulted in the tourism sector not achieving its economic potential. The final part of the paper presents an

organizational model designed to overcome the policy and planning problems of the tourism sector in the TRNC. The paper

concludes that those institutions in charge of, and responsible for, the development of the tourism sector have failed to formulate

and define a clear policy for this sector. This lack of clarity and direction in respect of policy, planning and strategy has resulted in

no real, concrete integrative planning for the tourism sector. One of the other principal aims of the study is to answer the question as

to why the North, has, for the last two and half decades, failed to develop a viable tourism sector despite the existing resources. The

theoretical background for this study is based on a concept of ‘‘institutionalism’’ and tries to show the extent to which it aids

understanding of the problems faced by less developed countries. This study contends that an analysis based on ‘institutionalism’ is

also conducive to Island economies in general and North Cyprus’s case in particular, it also shows the need for high profile

involvement by the state in reviving economies in the absence of various resource endowments.

r 2003 Elsevier Ltd. All rights reserved.

Keywords: Tourism development; Tourism institutional elements; Tourism planning; Tourism in Turkish Republic of North Cyprus

1. Introduction

The significance of tourism, at a worldwide level, iswell recognised and an old story. As reported by theWorld Travel and Tourism Council (WTTC), thecontribution of tourism to the global economy in 1999encompassed 11 percent of Gross Domestic Products;created 200 million jobs, which equates to 8 percent oftotal employment and will generate 5.5 million new jobsper annum until the year 2010 (Holden, 2000).

Third World countries have utilized tourism toachieve improvements in balances of payments; toincrease the general income level; to create additionalemployment opportunities; to stimulate economic di-

ng author.

ss: [email protected] (H. Alipour).

front matter r 2003 Elsevier Ltd. All rights reserved.

rman.2003.08.017

versification and to decrease regional imbalances(Theuns, 2002). Island states are no exception andindeed in many of them the tourism industry hasbecome the major sector for generating economicprosperity and overcoming various structural weak-nesses (Andriotis, 2002) by which island states arecharacterized. Most of them have a fragile economicstructure in terms of their reliance on the export of oneor two main products. Politically speaking, they play aminor role on the world stage (Butler, Briguglio,Harrison, & Filho, 1996).

This paper will approach the case of North Cyprus(formally the Turkish Republic of North Cyprus)(TRNC), as a particular and somewhat unusual casein its quest for development. In island states, the role ofgovernment is unique because islands are peculiarentities in terms of their highly dependent nature, not

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to mention the specific problems of such microstates andhow tourism is, in many cases, conceivably their onlyhope of economic development (Oppermann & Chon,1997, p. 17).

As Bull (1997, p.137) elaborated:

Island communities, simply because of their islandsituation, often face many problems in providingtheir inhabitants with ways of making a living. Theseproblems usually include remoteness, a restrictedresource base, and a constrained local market,whether the island is a sovereign state or part of amuch larger political unit (Royle, 1989). Indeed, thequality of life and opportunities for economicadvancement in some island communities may be sopoor that many of their inhabitants decide to leave.Tourism, in theoretically providing a mobile andconstantly renewable resource, may offer a way ofsolving some of these problems.

The objective of this paper is to approach the case ofNorth Cyprus’s tourism by addressing various aspectsas follows: first, the study will provide an historicalbackground of tourism development, as well as addres-sing the process of tourism development after indepen-dence (post-1960s). Second, the paper will focus on thedevelopment of tourism in North Cyprus in comparisonto that of the South (formally the Republic of Cyprus).Third, an evaluation of governmental institutions inrespect of the Northern Cyprus situation forms thefundamental part of this paper due to their major role indevelopment in general, and tourism in particular.

The analysis of the structural problems of the tourismsector, in respect of government policy and planning,uses an institutional approach based on the belief that:‘‘the institutional framework affects growth because it isintegral to the amount spent on both the cost oftransactions and the cost of transformation (in theproduction process)’’ (Aron, 2000, p. 4). The argumentis that, in comparison to the South, institutions in theNorth have failed to restructure the tourism sector. Withreference to the role that institutions play, Aronelaborated:

When institutions are poorly defined or there are fewformal institutions, economic activities are restrictedto interpersonal exchangesytransformation costs arehigh because the economy operates at a very low levelof specializationycontracts still are constrained bykinship tiesyfinally, there may be considerable sunkcosts in developing political and economic organiza-tions that can operate in a weak institutionalenvironment (2000, p. 4).

Hence the final section will propose a nationaltourism organization model designed to overcome thepresent problems and to incorporate a logical frame-work for the future development of tourism in North

Cyprus. To succeeded in this the variables that areassociated with the slow pace of tourism development inthe North need to be identified to create an appropriateworking model.

2. Theoretical basis of the study

To examine the case of the North Cyprus’s tourismdevelopment, and to understand/explore the causes offailures in this part of the island, a methodologicalmodel is suggested (see Fig. 1). The model’s funda-mental conceptual framework is based on an ‘institu-tional’ analysis of tourism sector in the North Cyprus.Justification for the employment of such frameworkincludes: first, the availability of a rich body of literaturepertaining to theories of ‘development and economicgrowth’ (i.e., application to tourism and its economic,social and environmental impacts) (Burns, 1999; Bry-den, 1973; de Kadt, 1976; Singh, Theuns, & Go, 1989;Britton, 1989; Theuns, 2002; Ayres, 2000; Coccossis,2001; Fayed & Fletcher, 2002; Balaguer & Cantavella-jorda, 2002; Sreekumar & Parayil, 2002). Second the‘institutionalist’ approach, is a new dimension that hasemerged in the literature to assess the process ofdevelopment and growth (North, 1990, 1995; Dugger,1995; Aron, 2000; Dawson, 1998; Engelbert, 2000;Casey, 1998). Third but not least, a theoreticalepistemology based on ‘social capital’ to explore thecauses of regional disparities has proven significant(Putnam, 1993; Keefer & Knack, 1995; La Porta, deSilanes, Shleiter, & Vishy, 1997; World Bank, 1992, 1997).

Given the boundaries of mainstream developmentand growth (i.e., in the context of economics), this studyuses an institutional analysis that parallels Burn’s (1999)argument (paradoxes in planning) He proposes a‘development’ versus ‘growth’ paradigm in order todetermine the ‘tourism’ sector’s long-term impact as ameans for national development. Burn’s model (i.e.,bipolarities in Tourism and Development) elaborateshow two distinct policies; a ‘‘development-First’ ap-proach versus ‘Tourism–First’ approach have beenutilized and applied in different environments.

A further reason for the debate is the availability ofthe case of the South (the Republic of Cyprus) as acomparative case study with its remarkable economicachievement via tourism as the focal point. Needless tosay, the ‘tourism’ sector has played a central role in thesouth’s NICification (Panayiotopoulos, 1995; Clements,1998).

‘Nicification’ is a process associated with the ‘NewlyIndustrialized Countries’(NICs) of Hong Kong,South Korea, Singapore, and Taiwan whose econom-ic performance coined as ‘‘Asian Renaissance’’ (Hong& Hsu, 1999). This process characterized by rapid

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The Republic of Cyprus

Division of the Island (1974) The Republic of Cyprus (South

Cyprus) Greek Cypriots segment.The quasi – state of North Cyprus

(TRNC) Enclave of Turkish Cypriots.

Post-Division Economic restructuring; Institutional Restructuring; Policy reformulation; Focus on Tourism Sector as the

main economic engine for development and growth.

Lack of institutionalization in general and absence of a clear policy regarding

Tourism sector.

Tourism development as a clear economic policy.

Lack of a formidable tourism policy; low-key tourism sector; perpetual dependence

on Turkey in every aspect.

Institutional restructuring; Tourismrole in Nicification of the South; a

success story.

Institutional deficiency; political uncertainty and lack of utilization of

tourism as an economic policy.

Set to join the European Union in year 2004.

An institutional assessment of

tourism development as a theoretical base

of the study.

Total institutional failure in the North vs. remarkable economic achievement in the South (with

emphasis on tourism).

Fig. 1. An institutional analysis model.

H. Alipour, H. Kilic / Tourism Management 26 (2005) 79–94 81

economic growth and development, which resultedfrom certain/deliberate policies of export orientedproduction, integrated national development (Gereffi& Hampel, 1996), cultivation of locally based capital,protectionism and government activism that could betermed ‘state-assisted capitalism’. The further mani-festation of Nicification is that, ‘short term efficiencyin production was subordinated to the longer-termgoal of building up strategic industrial capacity, thatis, to developing ‘‘dynamic’’ rather than ‘‘static’’comparative advantages in selected capital- technol-ogy intensive industries’’ (Walden, 1996, p. 3).

Finally, within such a framework, an answer canbe explored to a rather unanswered, yet legitimate

question: ‘‘Why has the northern part of the island notbeen able to capitalize/utilize its tourism sector toachieve the same objective despite its remarkabletourism resources?’’ It is suggested the answer lieswithin the structural characteristics of the institutionsand their defunct macro-level rules as well as theirincompetent players (Casey, 1998).

Fundamental to the theoretical aspect of this study isthe applicability/utility of the ‘institutional’ analysisapproach as a dynamic paradigm to investigate thepattern of stagnation and lack of structural transforma-tion, defined here as a process through which onestructure gives rise to the next (Brinkman, 1995). It iswithin this paradigm that explanations can be found forthe different trajectories of tourism development in the

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North when compared to the South. This study assumesthat endogenous factors (factors internal to the systemin the North), which are imbedded in the structure of theinstitutions including both policy-makers and policies,have been responsible for the dire economic conditionand decline of the vital tourism sector (Barkey &Gordon, 2001/2002). To add a significant strand to thelatter assumption, Burn’s (1999) ‘bipolarities in Tourismand Development’ model is applied as a fundamentaltheoretical base. According to the model, two distinctpolicies have been practiced universally in the tourismsector in different destinations, these being a ‘Tourist-First’ approach versus ‘Development-First’ approach.However, the study revealed that neither of thesepolicies has been implemented in the case of the North.Despite the rhetoric, the role of tourism in the economyhas, to date, remained a minor one. This has been thecase since the partition in 1974. As Ioannides (2000,p. 124) noted: ‘‘Unlike its Greek Cypriot neighbors, theTurkish Cypriot administration did not stress tourismdevelopment in the immediate aftermath of the 1974war.’’

3. Research methodology

Given that the purpose of this paper is to identify andexplore the processes of government policies andplanning and their subsequent effectiveness, a qualita-tive approach was employed. For this particular study,in-depth interviews were carried out with 33 personsinvolved in the policymaking process and the imple-mentation of plans. The subjects were drawn from theNational Tourism Organization (a public sector entity);the private sector (including travel agencies, hoteliersand tour operators) and non-profit organizations(including members of the media and related focusgroups). Interviews were conducted in an open-endedand descriptive manner and all conversations wererecorded to permit the accurate retention of importantinformation. The research process can thus be classifiedas recursive. Using this approach the formation of thehypothesis evolves as the research progresses; dataanalysis and collection take place concurrently, writingis also often an evolutionary, dynamic process, ratherthan a separate one which happens at the end of theproject (Veal, 1997, p. 131). The research methodemployed in this study is conducive to, and commensu-rate with, the objectives of the study, which attempts toinvestigate the history of tourism policy and plans andthe state of the tourism infrastructure and super-structure. The degree of sustainability and the natureof community participation with the local governmentwill be also examined. The findings will be presented inthe form of a discussion of issues at a general level asunderstood by the author. Some of these are con-

tentious, but the issues are serious for Northern Cyprusand it is evident that the current situation is not assuccessful as many would wish it to be.

4. Cyprus and tourism development

Cyprus is the third largest island in the MediterraneanSea. It occupies an area of 9851 km. (3572 square miles).It lies 60 km. south of the coast of Turkey, 96 km. westof the coast of Syria, and 322 km. distant from Greece(Rustem, 1987) (Fig. 2). Tourism development has takena different direction in the northern part of the islandsince partition after the Turkish intervention of 1974(WTO, 1994; Godfrey, 1996). The partition was theresult of unrest between the Greek and Turkishsegments of the population, which erupted into civilwar, resulting in an intervention (Bahcheli, 2000;Gazioglu, 1999) by the Turkish army and the de factopartition of the island. This partition has remained ineffect continuously since then.

Since 1974 tourism has been developed extensively inthe southern (Greek) portion of the island (Andronikou,1987), but it has all but disappeared in the northern,Turkish portion, although this area was originally thesite of most tourism development prior to partition(Lockhart, 1993; Butler & Mao, 1995). The formation ofNorthern Cyprus as a separate geographical area andhaving a distinct political/administrative system wascreated when Turkey (as a guarantor power) intervenedin Cyprus on July 20, 1974 and again on August 14,1974. As a result of this, about 37% of the territory inthe North then came under the jurisdiction of theCyprus Turkish Administration (Nedjatigil, 1982; An-dronikou, 1979; Barkey & Gordon, 2001). Conse-quently, ‘‘since 1974 the two geographical entities haveevolved separately. Whilst the South has shed thehandicaps inherited from the war and developed into aflourishing and affluent society, the North has struggledto achieve economic growth and escape dependence onTurkey (Barkey & Gordon, 2001).

5. Partition of the island: implications for tourism

development

5.1. The case of the South (the Republic of Cyprus)

Following the events of 1974, tourism developmenthas therefore taken two distinct paths; one of rapiddevelopment in the South (the Republic of Cyprus), andanother of decline and underdevelopment in the North(Northern Cyprus) (Clements, 1998). Interestingly en-ough, the process of rapid development in the South hasoccurred even though most of the tourism facilities andresources, especially around Famagusta, were lost to the

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Fig. 2. The map of Cyprus with the demarcation line.

H. Alipour, H. Kilic / Tourism Management 26 (2005) 79–94 83

North in the aftermath of the partition (Godfrey, 1996;Lockhart, 1997, 1993). As Godfrey (1996, p. 66)described:

The direct result was a loss of 37 percent of Cypriotterritory to Turkish control, along with 50 percent ofthe island’s manufacturing capacity and two-thirds ofits main agricultural area. More importantly fortourism, 50 percent of all catering and entertainmentfacilities, 82 percent of all accommodations, and 96percent of new hotels under construction (Androni-kou, 1979) were lost to the Turks. In addition, themain international airport at Nicosia, the capital city,which is a divided city between the south and north,was closed to commercial traffic, and visitor arrivalsseriously declined.

With the interruption to tourism in 1974, the industrycame to a virtual standstill (Ioannides, 1992); however,the Republican government’s firm commitment rejuve-nated the sector by formulating clearly defined policieson various fronts. As Clement (1998, p. 1) noted, ‘‘acentrally planned and controlled tourism industryevolved from the ashes, driven by a clear view of theindustry’s potential customers and the product thesecustomers desired’’. To name a few, coastal tourism wasgiven priority attention; there was a shift to qualitativedevelopment; a comprehensive plan for tourism wasprepared in the 1980s; the design of new strategiesincluding product improvement i.e., diversification andinvestment incentives. With regard to investment andincentives, the provision of 10-year tax holidays for

tourism enterprises undertaking large-scale productimprovement projects was laid down (WTO, 1994). Onthe physical development front, coastal areas weresubjected to what is known as ‘‘concentrated’’ develop-ment versus ‘‘dispersed’’ development (Inskeep, 1991).In fact, 90 percent of all tourist beds in southern Cypruscould be found along its 185mile (295 km) stretch ofcoastline (Godfrey, 1996; Lockhart, 1997; CTO, 1997).The amount of available accommodation had rocketedby the 1990s. By 1986, almost 40 percent of the 31,883CTO registered bed spaces were in hotel apartmentscompared to 29 percent of the total in 1981. In addition,there was a large non-licensed tourist accommodationsector—almost all self-catering—estimated as approxi-mately 30,000 bed spaces (Ioannides, 1992, pp. 722–723). By the 1990s, the CTO reported that of the 84,368beds available at the end of 1996, 45,950 were in starredhotels, 26,715 in luxury, ‘‘A’’, ‘‘B’’, and ‘‘C’’ class hotelapartments, and the remaining 11,703 in tourist apart-ments, tourist villas, traditional houses, guest–housesand non-starred hotels.

The role of government (Clement, 1998) in theevolution of the tourism sector and its extraordinarygrowth is beyond dispute; with most of the credit goingto the CTO, the South has consolidated its tourism inaccordance with Butler’s Product Life Cycle model.More importantly, such an achievement has been mainlydue to domestic efforts rather than international/foreigninvolvement as is falsely perceived by the North. In thecase of the Cypriot accommodation sector, the presenceof foreign international firms is surprisingly minimal

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Table 1

Tourist arrivals by country of residence and tourist expenditure

Country 1999 1998 Change % Average per person

expenditure (CYP)

United Kingdom 1,155,623 1,015,234 13.83 499.37

Germany 238,763 208,356 14.59 373.93

Switzerland 88,744 83,720 6.00 456.54

France 32,461 28,603 13.49 381.34

Holland 53,591 48,213 11.15 370.99

Belgium/Luxembourg 37,781 33,744 11.96 399.18

Austria 31,626 27,438 15.26 401.08

Italy 21,832 21,583 1.15 391.82

Ireland 31,138 21,930 41.99 599.85

Greece 83,134 70,768 17.47 281.61

Nordic countries 265,338 242,440 9.44 316.59

Russia + Ex. Sov. Union

Coun.

134,238 197,532 �32.04 457.02

Countries in Eastern

Europe

58,035 44,826 29.47 N/A

Israel 61,029 53,597 13.87 230.24

Arab countriesa 60,895 55,200 10.32 360.71

Other countries 80,057 69,522 15.15 N/A

All countries 2,434,285 2,222,706 9.52 400.26

Source: CTO (1999).aThe figure includes tourist arrivals from Lebanon, Middle East and Gulf Countries.

H. Alipour, H. Kilic / Tourism Management 26 (2005) 79–9484

(Ioannides, 1992). Due to these measures, Ioannides(1992, p. 727) maintains that: ‘‘the Cypriot governmenthas intentionally steered the island’s resort cycle towardsButler’s ‘consolidation’ stage’’. Whatever the case, thetourism explosion in the South consolidated when thenumber of tourists arrivals reached 2,088,000 in 1997,foreign currency earnings were estimated at 830 millionsCyprus pounds and (in 1996) tourism’s share of thereceipts for the export items accounted for 40.60percent. The number of beds/licensed establishmentspeaked at the end of 1997 to 84,368 (CTO, 1997). Seealso Table 1 for the tourist activity. Overall, the grossreceipts from tourism in foreign currency were reportedas CYP 194 million in year 2000, which constituted40.10% of the receipts from the exports of goods andproducts (Pound CP = 100 cents; exchange rate onOctober 21; 2000: 0.6795: US$ 1; CP 0. 5724: euro 1(EIU, 2003, CTO, 2000).

6. Tourism in the North Cyprus

6.1. The case of TRNC

Since the partition in 1974, the North’s economy hasremained highly dependent on foreign aid from Turkey,its main source of finance. As the Economist (2000)noted: ‘‘the local economy is almost entirely dependenton handouts from the Turkish government’’ (July 22–28, 2000, p. 32).

Tourism development has remained in a dismal state,contrary to its vital significance, found in other

Mediterranean destinations. Government tourism poli-cies have not created a ‘formidable’ strategy for thetourism sector in comparison to the South, despiteinheriting 387 kilometers of coastal resources and mostof the tourism accommodation in Famagusta andKyrenia (two main tourist regions in the North), aswell as 65 percent of the then existing total bed capacity.In addition, the North ended with possession of themain access point of Nicosia International Airport(Saveriades, 2000, p. 148).

Northern Cyprus has failed to structure its tourismindustry from a lack of a clear policy and implementableplanning guidelines. Tourism in the North remainshighly dependent on Turkey, both for financial supportand the tourist market (i.e., 80%) and as a stepping-stone or gateway to the rest of the world. For instance,bed occupancy rates have never exceeded 50 percent andtourism’s contribution, as a proportion of the GDP, hasremained insignificant. As Scott (1997, p. 65) observes:

The pattern of tourism development in NorthernCyprus has, therefore, been perilous and unsteady.Whilst it provides a considerable share of invisibleearnings, as a proportion of the GDP, it has remainedstatic at around 2 percent. Agriculture, and, inparticular, citrus production, remains the backboneof the economy. However, the agricultural sector,too, is beset with problems, resulting largely frommarketing bottlenecks and high inflation (Morvaridi,1993). With the lion’s share of resources earmarkedfor tourism development, agricultural activity hasbeen increasingly marginalized.

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The assumption is that, two major tiers of broadfactors are at work in the case of Northern Cyprus.Firstly, the external factors which resulted from parti-tion in 1974, and were exacerbated by the South’ssubsequent effort to overcome the division and achieveunification of the island. These efforts have takenvarious forms, including a total embargo on the Northby the South, lack of communication between the twoparts, international sanctions in aviation and trade, non-recognition by the international community, a militarypresence, and dependency on Turkish assistance inalmost every aspect (Lockhart, 1997; Dodd, 1995; Akis,Peristianis, & Warner, 1996).

The second tier of factors are internal/endogenous tothe system (i.e., institutions responsible for the devel-opment of tourism), and this tier are of major concernand are explored in this study. However, one must notoverlook the detrimental impacts of the exogenousfactors as mentioned above. For instance, because of anembargo by the International Air Transport Associa-tion, which is a result of Greek Cypriot pressures,European governments do not permit scheduled flightsto the TRNC. This has hurt tourism, which otherwisemight have been the most promising sector in theTurkish Cypriot economy (Bahcheli, 2000, p. 4).However, the supply side, which is represented by thegovernment and private sector, have yet to come up withany policy or mechanism to overcome this problem.Consequently, the tourism sector in the TRNC is unableto compete with other destinations in the region despiteits potential to produce a unique product. Lack of atourism master plan, deficient institutional structure,lack of clear policy for the sector, are just a few of manymalaises. As a result beaches suffer from a lack of anycoastal planning, solid waste has spread with almost nomanagement, and shanty campsites occupy some of theprime beaches. Furthermore, a repulsive landscape dueto lack of local planning and a total absence of anyintegration between tourism and urbanization hasresulted, exacerbated by deficient basic services andinfrastructure (Kibris, 1999, 2001a, b, 2002).

7. A political option

One option available to overcome the problems is‘‘unification’’. Ever since the partition, ‘‘numerousattempts have been made to bring the two sidestogether, and countless talks have been held under UNauspices with active US participation. All have provenfruitless’’ (Barkey & Gordon, 2001, p. 2). The lack ofcommitment to reunification cannot be blamed only onthe Turkish part; the Greek Cypriots uncompromisingattitude over territorial agreement has provided acondition for adamant behavior by the Turkish Cypriotleaders, thereby frustrating any hope for unification.

Cyprus is set to join the European Union in May 2004,whether the island remains divided or not (Simons,2003, p. 1). Unfortunately, with the breakdown of thelatest unification effort (in 2003) and the accession of theGreek Cypriot side into the European Union, the futureof tourism in the TRNC is even bleaker than ever. Asthe United Nations Secretary General expressed: ‘‘re-grettably these efforts were not a success; we havereached the end of the road’’ (Reuters, 2003, p. 1). Thefate of the tourism sector will be even bleaker if theopportunity for joining the European Union is lost atthis historical conjuncture.

8. Tourism activities

8.1. Economic impact

As a result of past developments, the economicimpacts of tourism in Northern Cyprus have beenminimal. Bed capacity has remained under 10,000, withgenerally an uncompetitive product (interview withdirectors of KITSAB and KITOB, 2001) (CyprusTurkish Travel Agents Union and Cyprus TurkishHoteliers Union). The low occupancy rate has drivenmany hotel owners to the verge of bankruptcy andemployment in the tourism sector has remained as lowas 3269 or 3 percent of the total employment.Agriculture remains the second largest employer afterthe public sector (SPO, 1999). In fact, most of theuniversity graduates who are trained in tourism do notfind employment in the North, and mostly look forwork in Turkey or migrate (Kibris, 2001; Akis &Warner, 1994). As Barkey and Gordon (2001, p. 4)noted: ‘‘The exodus of many of the most talentedTurkish Cypriots has accelerated, and according to thebest estimates, nearly half of northern Cyprus’ popula-tion is made up of mainland settlers’’.

As the trade deficit had reached US$336.7 million by1998, tourism’s contribution to the GDP was reportedas being 3.1 percent for the same year (MSDPM, 1999).See also Table 2 for the economic role of tourism in theTRNC.

9. Tourism accommodation

The accommodation sector can be divided into threegeneral categories: hotels, hotel-apartments and guest-houses. The total number of accommodations/establish-ments are 107 units, of which 5 are in the ‘‘5 star’’category, 8 are ‘‘4 star’’, 23 are ‘‘3 star’’, 33 are ‘‘2 star’’,and 38 are in the ‘‘1 star’’ category. The remainder of theaccommodation is ‘‘non-starred’’ or categorized asguesthouse (MTE, 2001, p. 4). Comparatively speaking,none of this accommodation is in any way competitive

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Table 2

Tourism and its role in TRNC’s Economy

Years Value added in

tourism sector

($US million)

Tourism’s share of

GDP (%)

Net tourism income

($US million)

The ratio of net

tourism income to the

trade balance (%)

Number of employees

in tourism sector

1992 178.2 2.5 175.1 55.3 n/a

1993 221.9 3.0 224.6 72.6 n/a

1994 235.0 3.3 172.9 74.1 4579

1995 243.6 3.3 218.9 73.3 4581

1996 211.5 2.7 175.6 70.0 5075

1997 241.7 3.0 183.2 61.3 5319

1998 249.5 3.0 186.0 55.2 6038

1999 277.8 3.1 192.8 53.5 6042

2000 288.2 3.2 198.3 53.0 6049

2001 242.7 2.8 105.9 41.5 5995

Source: Ministry of Tourism and Environment (2001).

H. Alipour, H. Kilic / Tourism Management 26 (2005) 79–9486

with the same product in the South or in Turkey, twoof the major tourist destinations in the EasternMediterranean.

By 1998 the number of beds in the North had reached9365, which is an insignificant number in comparison tothat of the South. Moreover, the majority of theseestablishments are in Kyrenia, which has been the majortourist area in spatio-temporal terms. The second largestconcentration of accommodation is in Famagusta,traditionally a tourist zone, and home to a majoruniversity. The bed capacity of Kyrenia and Famagustais 6527 and 1789 respectively. No policy change inaccommodation location from pre-partition period hasoccurred to date. For example, Guzelyurt and itsenvirons, which have an attractive landscape andlandform, have received little or no attention. The bedcapacity of this area has remained below 60 (MSDPM,1998). With an occupancy rate of lower than 40% allyear round, the survival of the hotel sector remains aconcern. Since the number of tourists is commensuratewith the growth in the hotel sector (Wilkinson, 1997),there will be little or no incentive to enter into this typeof venture. Moreover, the fate of the accommodationsector is also bound to the characteristics of the touristto the north. Because of the low percentage of non-Turkish arrivals (22 percent on average), as well as theirshort length of stay (averaging about 3 days), anotherestimate indicates that occupancy rates have remainedpersistently low at about 30 percent (Ioannides, 2000,p. 126).

Another policy failure pertains to a disputed area ofVarosha (renamed Maras). Despite its attractive coastsand over 10,000 bed capacity, tourism institutions havefailed to utilize such potential due to lack of a cleartourism strategy. As Lockhart (1997, p.165) noted:

Some 10500 beds have remained lost to the touristindustry, and although several properties wererequisitioned by the Turkish armed forces, a much

larger number, particularly those in the suburb ofVarosha, were fenced off and are derelict. The hotelsat Ayia Marina and Dhavlos in the Karpas peninsulahave also been abandoned.

The lack of utilization of Varosha cannot beexplained by anything other than the absence ofeffective policies by the tourism institutions. Mostlikely, the fate of Varosha is bound to the ‘Cyprussettlement’ and its reaching a solution in order toremove a key barrier to Varosha’s status as ‘no man’sland’. However, the Turkish Cypriot leader’s rhetoricalthreat to open the area in response to Greek Cypriot’sapplication for EU accession has not been realized. AsKnippers, noted: ‘‘The once bustling port and center oftourism has since remained a ghost town and a symbolof unresolved crisis and political failure’’ (2001, p. 2).(See also Table 3).

10. The role of institutions

10.1. Missing link?

From a policy and planning point of view, the majorinstitution responsible for the development of thetourism sector is the government and its respectiveagencies. As Richter (1989, p. 11) succinctly elaborated:‘‘where tourism succeeds or fails is largely a function ofpolitical and administrative action and it is not afunction of economic business expertise’’.

Internal factors, as an innate part of the government,have been the emphasis of this paper. Notwithstandingthe exogenous factors role in the present shape of thetourism sector, it is contended that the public sector’sbehavior has contributed to present state of tourism.This can be traced back to overall policy decisions inother sectors and their performance, as well as tourismplanning itself. For the last 30 years of partition and 20

ARTICLE IN PRESS

Table 3

Tourism activities in the Turkish Republic of North Cyprus (TRNC) (2001)

Arrivals

from

Turkey

Arrivals from

other than

Turkey

Arrivals of

expatriates

Total

arrivals

Number of

arrivals from

the south

(%) of

occupancy

rate

Average

length of

stay

(%) of occupancy

rate in the

guesthouses

January 26,346 2313 7945 36,604 976 15.2 3.3 6.1

February 17,270 3339 8465 27,074 1021 18.1 3.5 5.8

March 32,751 5930 8911 47,592 1456 26.5 4.5 9.3

April 15,361 7758 7657 30,776 2421 26.3 4.3 15.3

May 19,682 8988 7395 36,065 2050 32.1 4.5 6.2

June 21,527 8191 9843 39,561 1914 34.9 4.6 9.9

July 24,462 9862 20,423 54,747 1180 40.8 4.6 8.9

August 25,012 11,028 20,792 56,832 2030 53.4 5.1 8.2

September 28,133 13,084 13,387 54,604 1911 48.6 5.2 7.6

October 29,152 9230 8188 46,570 2150 34.0 4.7 5.3

November 14,801 3422 6296 24,519 1346 16.7 3.7 4.5

December 23,242 4213 8444 35,899 1242 23.4 3.4 7.6

Total 277,739 87,358 127,746 492,843 19,702 31.5 4.5 7.8

Source: Ministry of Tourism and Environment (2001).

H. Alipour, H. Kilic / Tourism Management 26 (2005) 79–94 87

years of independence, the North has yet to establish aviable economic system comparable with that of theSouth. As Ioannides (2000, p. 124) stressed:

Despite the region’s growing popularity as a touristdestination, a number of factors have stalled thesector’s growth. Among them was the fact that unlikeits Greek Cypriot neighbors, the Turkish Cypriotadministration did not stress tourism development inthe immediate aftermath of 1974 war [the five-yeardevelopment plans have also demonstrated this view].Instead, during these early stages, policy-makersplaced heavy emphasis on creating a robust agricul-tural sector to serve the predominantly rural popula-tion. He continued that, the absence among TurkishCypriots of a significant entrepreneurial class (andthus expertise) on par with the one that existed in thesouth did not help tourism growth either.

Despite constant rhetorical efforts to restore thedevelopment of the tourism sector, its role andcontribution has remained marginal in the generalcontext of the whole economy, unlike in the case ofthe South (Republic of Cyprus), where tourism has beenutilized as the major engine for the economy and hasplayed a decisive role in the NIC-ification of the South(Panayiotopoulos, 1995). The reasons for the under-development and retardation of the tourism sector in theNorth can be traced to the behavior and attitude ofinstitutions involved and their political affiliations (asinternal factors affecting the policy making process)immediately after the partition. This may have not beenthe only cause, but it was certainly a major contributoryfactor. This is a view contrary to most of the literaturewhich has identified external factors as being the causeof overall economic decline and tourism’s stagnation inthe North. However, it is here contended that the

government has remained institutionally anaemic andvulnerable in respect of its dependence on Turkey.

Thus, the process and evolution of the tourism sectorhas suffered due to institutional weaknesses, which areunderlying determinants of long-term economic perfor-mance (Aron, 2000, p. 1). Governmental institutions inthe North are subject to double stress, being highlydependent on Turkey on the one hand and subject tosanctions by the United Nations on the other. As aresult, policy makers have failed to establish stronginstitutions and have fallen short of encouraging theformation of more appropriate political structuresnecessary for growth and development (Aron, 2000).As Mansfeld and Kliot (1996, p. 195) noted: ‘‘Tourismin the North did not attain the achievements of itsequivalent sector in the South, mainly due to theinability of the government [institutions] to act as a realstimulus for private sector investments’’. As North(1990, p. 110) elaborated: ‘‘Third world countries arepoor because the institutional constraints define a set ofpayoffs to the political/economic activity that do notencourage productive activity’’. In the case of NorthernCyprus, institutions have failed to produce policies todirect and govern the economic growth (i.e., particularlywith tourism as the focal point here). It should beborne in mind that policy-makers and policies are asmuch a part of the institutional context as anything else(Casey, 1998).

11. Recommended organizational model

Tourism development and planning, at least in mostdeveloping countries, has fallen within the publicsector’s domain in recent years. This is because tourismrequires a vast organizational apparatus and creates a

ARTICLE IN PRESSH. Alipour, H. Kilic / Tourism Management 26 (2005) 79–9488

national, regional, and local affinity with the develop-ment of, and the impact on, the social, political,environmental and economical aspects of any geo-graphic entity. However, each country needs the typeor form of organization or administration appropriateto its socio-political and environmental characteristics inrelation to the development of the tourism sector. AsInskeep (1991, p. 411) elaborated:

In order to plan, develop, market, coordinate, andmanage tourism in a country or region, effectiveorganizational structures are essential. However, thetypes of government or public sector structures andthe extent of their involvement in tourism must beadapted to the particular needs and ideological andpolitical structure of the country and the type andextent of tourism development.’’ He continues that:‘‘yit is only in recent years, with the rapiddevelopment of tourism in many places, that someareas have adopted policies of relatively stronggovernment involvement in tourism.

Thus, the case of North Cyprus is a manifestation ofan institutional crisis in the policy sector, and tourism isan example of a policy sector gone wrong. However, thetourism sector deserves further attention as it ispotentially the heart of economic development. It is onthese grounds that a hypothetical model of a nationaltourism organization (NTO) has been proposed (asillustrated in Fig. 3) to address the institutional/organizational crisis in the tourism sector through anorganizational framework. This can pave the way for an

Minist

Advisory Board

Marketing & Promotion Environmental Liaison

ProductDevelopment

Market Segmentation

Carrying Capacity

E I A Environmental

Auditing

RegionalMarket

European Market

Present Market

S

CitiCommun

Fig. 3. A National Tourism Or

unified field of actors, rules and practices, and anindependent tourism policy sector. Further justificationfor the model lies in the fact that an independenttourism policy sector, immune to party politics andcronyism, will achieve a balance between institutiona-lized values, structure and processes in the sector, andsocietal and political conceptions of what is appropriate.

The model poses a new framework and challenge topolicy-makers and stakeholder representatives respon-sible for the organization, in another words, this is new‘fit’ to prepare the stage for strategic reorientation aswell as institutional restructuring.

The lack of institutionalization in the tourism sectorhas been the result of traditional bureaucratic ap-proaches, and the subjugation of the tourism sector tocompetition between the various public bodies seekingto enlarge their sphere of influence (Tosun, 2001). Theformation of a body at cabinet level (a governmentministry) (Inskeep, 1991), with statutory power (Elliot,1997), will be a new undertaking in the right direction.This will be an institutional strategy with the ability toarticulate, sponsor, and defend particular practicespertaining to tourism. Formulation of such model hasbeen based on the realities of the social, political, andeconomic as well as environmental aspects and concernsin this part of the island.

The proposed National Tourism Organization will bea statutory organization, in the sense that it will be anindependent legal entity provisioned by an Act ofParliament. In respect of this, Elliot (1997, p. 102)noted: ‘‘The statutory organization is seen as one of the

ry of Tourism

Performance Measurement Committee

Training & Education Planning Board

Implementation & Monitoring

Policy / trategy

Master Plan

City Planning (Municipality)

TourismResearch Centers

Training & Education Institutions

Feed

back

zen Input /ity Participation

ganization (NTO) model.

ARTICLE IN PRESSH. Alipour, H. Kilic / Tourism Management 26 (2005) 79–94 89

most efficient and effective form of public managementand is widely used by governments throughout theworld. It is particularly important in the implementationof tourism policy and marketing.’’ This is also, it wouldbe true to say, a political process that is directingtourism. The proposed model has a political connota-tion from a policy perspective, and bears a degree ofsophistication missing in the present organization.Alternatively, it is proposed to have a legal foundationas an institution rather than that based on oraltraditions (Gunn, 1997).

12. Conclusion

This paper has provided an overview of the develop-ment and structure of tourism in the Turkish Republicof Northern Cyprus (TRNC) as it evolved into aseparate political entity after the partition in 1974.A comparative framework with South Cyprus (theRepublic of Cyprus) was employed to demonstrate thedifferent trajectories that tourism development hastaken in both sectors. The study has also attempted toexplore the institutional elements of the tourism sectorand its evolution pertaining to the growth anddynamism of the sector. Research revealed that tourismwas becoming a lucrative sector after Independence inthe 1960s, and was catching up with other Mediterra-nean destinations in terms of growth and development.However, the ethnic conflict between the two majorcommunities on the island (Turkish Cypriots and GreekCypriots) resulted in the partition of the island andsubsequently two different tourism development paths.It was after partition that a new beginning for economicgrowth and prosperity posed the most challenging tasksfor both communities in terms of restructuring theirpolitical, economic, and social systems.

The major difficulties, which both communities faced,were, in some respects similar, and in other respects notso similar. Both communities had to deal with the flocksof refugees (i.e., 200,000 from the North to the South;40,000 from the South to the North) (Ioannides, 2000,p. 114). Both communities became highly dependent onforeign aid to get back on their feet; moreover, bothcommunities had to revitalize their tourism sector as itfell victim to the political turmoil, which existedthroughout the whole island.

Both communities faced significant problems, and themost challenging area was the economic revival viatourism. The South had utilized the refugees as a newsource of labor, restructured its institutions throughvarious agreements under the ‘tripartism’, and em-barked upon NIC-fication with tremendous success(Panayiotopoulos, 1995; Ioannides, 2000; Ayres, 2000).The tourism sector was and still is, significant to thisprocess of economic revival in the South, playing

a decisive role in the generation of foreign exchangeand employment. Key to the South’s economic miraclehas been effective institutional restructuring, the strate-gies for development, and the clearly defined objectiveswith the Cyprus Tourism Organization (CTO) as anational tourism organization at the center of theprocess.

The study concludes that, major bottlenecks in thetourism sector per se, and the implications for theoverall economic growth in general, have been, and willcontinue to remain, not only on account of the externalfactors, but rather because of the lack of institutionalreorganization and adaptation to the new worldenvironment. So far, the tourism sector has remaineda low-key economic contributor despite its tremendouspotential, and it suffers problems such as transport,infrastructure, pollution, a shortage of qualified staff,inadequate facilities, high prices, and an inadequatebanking system (Akis & Warner, 1994).

What is needed is the government’s decisive involve-ment in the reorganization of the tourism institutionwith a capable tourism-oriented administration, which isrelatively autonomous from societal interest groups. Theproposed model can be the first step in the rightdirection as it emphasizes a planning process withcommunity participation towards building ‘social capi-tal’, a necessary ingredient for institutional efficacy andresponsiveness, and which is contrary to the presentsituation that marred by the persistence of hierarchicalpatron–client relationships (Casey, 1998).

Appendix. A The emergence of the National Tourism

Organization (NTO) in TRNC

This Appendix seeks to meet specific points raised byreferees but which were difficult to incorporate into themain text of the paper. Nonetheless they providecontextual information that helps develop the natureof the problem faced by Northern Cyprus.

The birth of the NTO in the TRNC began with theestablishment of the ‘tourist office’ in 1973 prior topartition in 1974. The first tourist office began its workin response to displeasure by Turkish shop keepers andbusinesses that were unhappy with the fact that Turkishtourists to the Island spent their money in the GreekCypriot owned shops and accommodation in theNicosia region. As a result, the established ‘touristoffice’ published a tourist guide for Turkish touristswhich contained 32 pages of information about how toget around as well as promoting the attractions in theTurkish enclave (Yesilada, 1994).

The second step in the evolution of the NTOcoincided with the establishment of Cyprus TurkishTourism Enterprises (CTTE) right after the partition.The formation of this association was recommended

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by Turkey in response to a lack of expertise in the northpertaining to the management and operation of thetourism sector, and particularly accommodation whichbecame the responsibility of the public sector. The mainobjective of CTTE was to operate several hotels, andto train locals how to manage and operate thoseestablishments (Martin, 1993). However, as time passed,CTTE failed to make these establishments profitableand finally the attempt was abandoned as the lossspiraled.

Additionally, the nature and structure as well as thelegal status of the so-called NTO remained ambiguousthroughout this process. Not only the institutionaliza-tion of the NTO (and for that reason the tourism sector)was ever properly materialized/realized, but it hasremained as ambiguous as it was at the time of itsinception as a tourist office.

With the disappointing performance of the CTTE, theso-called NTO has never become an institution in itsown right. Thus, the ambiguity and confusion over thenature of tourism and its respective organization wasperpetuated as it was placed under the auspices ofdifferent Ministries during the last three decades.Ministries who had overseen the tourism sector are asfollows:

* Ministry of Information and Tourism,* Ministry of Energy , Natural Resources and Tourism,* Ministry of Industry , Trade and Tourism,* Ministry of Transportation and Tourism,* Ministry of Social Security and Tourism,* Ministry of Culture and Tourism,* Ministry of State and Deputy Prime Ministry* Ministry of Tourism and Environment (the recent

change) (Yesilada, 1994; MTE, 2002).

Alas, as each new government came to power,tourism and its fate remained uncertain. As Yesilada(1994, p. 88) noted:

‘‘With the inauguration of the new government,tourism organization was thrown at a new Ministry,this change of hosting the tourism office by so manydifferent Ministries is a record breaking number.Interestingly, each Ministry also appointed a newdirector for the tourism office without any idea ordirection for tourism sector. Eventually, the tourismoffice would remain a marginal organization with nomore than three to five staff.’’ He continues that: ‘‘infact, in the late 1980s, no Ministry was willing to takethe tourism office under its wings, therefore, theMinister of Foreign Affairs and Defense offered hisguardianship to accommodate the tourism office as amerciful gesture. And in fact, tourism office washosted by the above mentioned Ministry until thenext government.’’

A.1. Present structure of NTO

The latest change, at least in name, was in 2001 whenthe tourism office was given a new name (Ministry ofTourism and Environment). Although it is called a‘‘Ministry’’, ‘tourism’ has never been given a Ministerialstatus which can be legally issued only by decree of theparliament. Therefore, the present title has no legalbasis. Thus, it is still an appendage of the Ministry ofState and Deputy Prime Minister.

One may wonder why the ‘‘environmental steward-ship’’ of the country has been attached to the so-callednational tourism organization at a time when ‘‘newenvironmentalism’’ is becoming a universal motto.Environmental protection and sustainable developmentgo hand in hand to achieve wise resource management,equitable distribution of benefits, and reduction ofnegative effects on people and the environment fromthe process of economic growth (Serageldin, 1996). Thepresent NTO neither has the capability nor the strategytoward achieving such goals. This new title (even if it isin the name only) is evidence of a paradoxical set ofmisperceptions over the role of an ‘environmentalagency’ which supposes to rewrite and redirect theplanning processes of the country in general and tourismsector in particular.

The present structure of the NTO consists of(i) tourism planning office, and (ii) tourism promotionand marketing office. The Tourism planning office issupposed to give advice and guidance to investors andmonitors the process for compatibility with the com-prehensive/master plan. Tourism promotion and mar-keting unit is responsible for promoting TRNC and itsproduct by various means. The problem is that there isno conclusive decision over any master plan either at thenational or local levels, not to mention the lack of totalintegration between planning in general and tourismplanning in particular. And the landscape is littered withhaphazard urbanization in the absence of any land useand zoning laws. Even if there is any law, implementa-tion is the biggest of all problems.

The marketing department is supposed to promotethe TRNC tourism product. The question is what typeof product, for which market target, and based on whatkind of provisional facilities? Ambiguity over theseissues are still in place and are manifested by the lack ofany success to attract tourists from anywhere outsidemainland Turkey. Even if tourists are coming from theTurkish market, these are not necessarily due topromotional activities of the marketing department,but rather come to the North Cyprus through recruit-ment by the universities as students, or via casinos forthe purpose of gambling which is a dominant form oftourism in the north.

The attachment of the ‘‘environmental’’ organizationto NTO has coincided with the deterioration of the

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environment in different parts e.g., defacing of thepicturesque mountainous areas between Famagusta andKyrenia by construction companies, the severe problemof open field dumping of the municipal waste, and lackof any environmentally oriented measures such asrecycling or reusing are just a few examples ofenvironmental distress. It remains to be seen to whatextent the recent marriage between these two organiza-tions will translate into the safeguarding of theenvironment.

The defunct institutionalization process of tourismcan be also explored by looking at the ‘Five-yeardevelopment plans’ before and after the declaration ofindependence in 1983.

A.2. The first 5-year development plan (1978–1983)

This plan, expected to lay down the foundation fortourism, was devoid of any tourism policy/strategy, andit failed to clarify organizational responsibilities regard-ing the tourism sector. Such an institutional void may bejustified as the policy makers were preoccupied with:

* Rehabilitation and accommodation of refugees;* Lack of any proactive planning for the post partition

era;* Lack of basic infrastructure;* Sanctions; and* Contentions over the declaration of independence.

A.3. The first 3-year development plan (1983–1986)

In retrospect, the first 3-year development plancoincided with the political upheavals, which culminatedin the declaration of independence (November 15, 1983).It was named ‘‘a plan for the transitional period’’ (SPO,1988). This first formal development plan was alsolacking a ‘policy’ formulation regarding the tourismsector and was devoid of any plan to target tourismeither at the national or local level. This was under-standable given the government’s preoccupation withthe political upheavals in terms of the struggle for thedeclaration of independence on the one hand, and totaleconomic dependency on Turkey on the other hand(Dodd, 1995). During this period tourism was put on‘auto-pilot’ and did not play a significant role inalleviating the economic ills (Olgun, 1993).

A.4. The second 5-year development plan (1988–1993)

Contrary to the First Five-Year Development Plan,this plan addressed certain policy objectives such as theutilization of tourism as a means to achieve: a betterbalance of payments; exchange reserves; develop a betterlink with European and Middle Eastern countries;improvement of the infrastructure; improvement of

quality of service and the boosting of the competitive-ness of TRNC. Last but not least, it sought to increasethe number of the tourists as well as alleviate theinfrastructural bottlenecks that were clear indicationsof the fundamental flaws that existed in the sector. Inthe end, the target of doubling income from tourismby the end of this planning period was never realizedand the infrastructural deficiencies remained unsolved(SPO, 1988).

A.5. The third 5-year development plan (1993–1998)

With reference to tourism, the third plan was criticalof the lack of achievement in that sector, and it statedretrospectively that: ‘‘regardless of efforts to enhance thetourism sector, many problems had remained unre-solved, and the tourism sector has not been able toestablish itself as a viable economic sector. In this planreport, it was acknowledged that, the absence of aphysical plan—due to the lack of a Master Plan—handicapped the growth and development of thetourism sector’’ (SPO 1992, p. 266). The report alsoacknowledged the lack of environmental concern due tothe absence of institutions in this field, the lack of lawsand regulations, the inattention to the safeguarding ofhistorical resources, and the apathetic attitude towardsthe concept of national parks and their management(SPO, 1992).

To summarise, the evolution of the NTO in the caseof TRNC manifested itself in what is known as ‘a policysector gone adrift’. This cannot be separated from aspecific ‘policy dynamic’. Yet it can be argued thatactors, rules and practices are the embodiment of thepolicy sector in the institutions. It is obvious that certainexternal variables caused the NTO to be vulnerable;however, the very variables internal to the NTO in termsof policy dynamics failed to develop robust processesthrough organizational development, strategic planning,community building and process consultation. And/orto put it plainly, in the aftermath of partition, aparadigm shift became a reality, but the policy makersfailed to transform themselves.

A.6. The problem of the lack of direct flight-accessibility

issue

Transportation and for that matter the issue of‘accessibility’ is one of the fundamental components oftourism (Lamb & Davidson, 1996). Being an island, andwith a certain degree of isolation, it is even more vital tobe accessible. In the case of the Turkish Republic ofNorth Cyprus, without any doubt, the sanctions havetaken their toll and the lack of direct flights has becomea great burden in general and for tourism in particular.

However, this is not to say that there is no air travel toTRNC. In fact Cyprus Turkish Airline (KTHY), in

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partnership with Turkish Airline, was established underthe law No. 28/74 in December 4, 1974. The mainobjective was to fulfill the tourism sector’s demand andcontribute to the economy. Regular flights betweenTRNC and London have materialized since then. Theonly draw back from the ‘tourism ‘ point of view was thelack of direct flight with a stop over in Istanbul, Turkey.Thus, some accessibility to the Island has been inexistence since right after the partition. Cyprus TurkishAirline has established its name as a carrier throughdifferent travel agencies, it has purchased and ownedairplanes, has received various forms of assistance fromTurkish Airline, and presently it flies to 13 differentdestinations including London, Ireland, Germany andIsrael, not necessarily directly but indirectly (K.T.H.Y,2003).

Nevertheless, indirect flight has generated inconve-niences in the system. One legitimate question, which isat the heart of the argument, remains to be explored iswhat types of measures or policies have been taken bythe institutions in charge (including tourism) to alleviatethis problem?

This paper argues that this inaccessibility is notseparate from the institutional crises of the so calledNTO. The lack of a tourism institution with vision andstrategy has resulted in failure to overcome/minimize theaccessibility problem and whatever might be associatedwith it. Some of the variables at work are specific, othersnot so specific. One variable specific to the case is theterms of the contract between Turkish Airline andTurkish Cyprus Airline. The company has beenentangled in a bureaucratic maze which does not permitcompetition. For example the denial of permission to acompany to set up a shuttle type service betweenAntalya (a destination on the Turkish Mediterraneancoast) and Ercan (TRNC’s airport) is a case in point.Secondly, there are airlines that are not a member of(International Air Transport Association) IATA andcan bypass the embargo. However, neither TRNC norTurkey have sought to overcome this obstacle which ispolitical in nature (Yesilada, 1994).

The accessibility issue can be also addressed byanalyzing the NTO’s policies within the context of‘transport and tourism’. In Seeking’s (2001) words, therelationship between transport and tourism is similar tothe ‘tail that wags the dog’. In the case of the TRNC,policy makers have failed to understand the complexnature of the transportation issue and for that reasonthe issue of accessibility in a broader sense. Policymakers have failed to perceive the varied and multi-faceted transportation universe that tourism industriesand government tourism agencies should consider intheir policies, programs, and actions (Lamb & David-son, 1996, p. 265).

The accessibility via ‘‘air’’ is just one of the linkageswithin this universe, obviously a significant one;

however, there are other elements including Rail,Highway, Bus/Motorcoach, Intermodal, Transit,Bicycle/Linear Corridors, and Marine. None of theseelements have been given proper attention and nonehave been the subject of any policy or plan. Aninvestigation of the ‘tourism transportation interfaces’in the case of TRNC, revealed an obvious shortfall inthe areas of infrastructure provision, policies andplanning, marketing , and consultations/lobbying reg-ulation. To further demonstrate the lack of care, suchwas the dreadful condition of the Ercan airport as themain gateway to the TRNC, it had to be recently closedin order to undertake much needed repairs.

A.7. Composition of the sample and the mode of analysis

‘Purposeful’ sampling has been at the core of thisstudy. The respondents used in this case study areinformation-rich sources and possessed what might bedescribed as an ‘‘organic bonding’’ with the institution/organization in question. By using the term ‘organic’ wemean that respondents were highly qualified to exposethe nature of the institution pertaining to issues such as:mission/strategy, formal structure, informal structure,interaction and fit with the work, feelings and identity,and vision. And/or this allowed for a diagnosticevaluation of institutional dysfunction.

On the ‘mode of analysis’, all the answers byrespondents to the standardized in–depth, open-endedinterviews were recorded, transcribed and coded.Because of the sample size as well as the focused natureof the study on a particular institution, a coding systemfor data analysis was applied. The following stepsconstituted the mode of analysis.

* Step 1: Coding the data by pinpointing on issueshighly significant/relevant to the questions in theinterview.

* Step 2: Developing themes from the data (answer tothe questions) and production of a ‘raw’ report sheet.Utmost caution was given to be tied to the data as thecoding proceeded.

* Step 3: Organized a conceptual schema based on thedata, this is perhaps the most significant step in asense that, an instrument of conceptualization devel-oped to filter out the institutional dysfunctions in thisparticular case.

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