CYPRUS TOURISM STRATEGY CYPRUS TOURISM STRATEGY Stakeholder presentation Nicosia, October 3, 2017 Jörn Gieschen 1
CYPRUS TOURISM STRATEGY
CYPRUS TOURISMSTRATEGYStakeholder presentation
Nicosia, October 3, 2017
Jörn Gieschen
1
CYPRUS TOURISM STRATEGY
3
Two central pillars for strategy success
Participation
System
Implementation
System
CYPRUS TOURISM STRATEGY
4
Ministry of Energy, Commerce, Tourism
and Industry
Cyprus Tourism Organization
Hermes Airports
Ambitious, knowledgeable, and caring partners
CYPRUS TOURISM STRATEGY
5
An intensive ongoing participatory process
33
One-to-one Interviews
• 33 interviews to selected
stakeholders, covering private
and public sectors, such as:
⌐ Government
⌐ Regional & local authorities
⌐ Chambers of Commerce
⌐ Museums & leisure entities
⌐ Professional associations
⌐ Universities
⌐ Accommodation
⌐ Developers & Investors
⌐ Tour Operators
⌐ Etc.
17
Workshops
(114 participants)
2 Types:
• Territorial workshops, one per
region
• Sectorial workshops
⌐ Accommodation
⌐ F&B
⌐ Airlines
⌐ Historic & cultural heritage
⌐ Natural preservation areas
⌐ Travel agencies & operators
⌐ Handicraft & local products
⌐ MICE
⌐ Wineries
⌐ Tourism planners and
managers
Working sessions &
questionnaires to
Offices abroad
• Project Management Team
sessions
• Sounding Board sessions
• The CTO (1 week-long session)
Additionally…
• Online questionnaires to CTO
offices abroad.
Site inspection trip
• The field visit was a key
element of the research
phase, as it provided the team
with an overall picture of
Cyprus and an understanding
of how Cyprus performs as a
tourism destination
CYPRUS TOURISM STRATEGY
6
External Analysis – More interviews
Secondary Market Research
•European Travel Monitor /Behavior
•WEF Competitiveness Index
•17 Countries & 7 segments reports
Interviews with collaborators:
airlines and tour operators
•31 tour operators in 5 selected source markets.
•10 airlines in main source and key markets.
Consumer Survey
in selected source markets
•1.700 interviews in 5 countries
•Brand Adoption Process Research
CYPRUS TOURISM STRATEGY
7
Two central pillars for strategy success
Participation
System
Implementation
System
CYPRUS TOURISM STRATEGY
Source: THR based on “The Execution Premium”, Kaplan & Norton 8
Balanced Scorecard Strategy mapProcess
1.Deliver an exceptional
tourism experience
B. Significantly improve the value along the customer journey
C. Dramatically reduce visual pollution in the destination
A. Develop a system of high value experiences in Cyprus
Lea
rn a
nd
gro
wth
Str
ate
gic
P
roc
ess
es
DR
IVER
SEN
AB
LER
S
2.Excel in planningand development
D. Implement excellent tourism development master planning
E. Define and manage clear growth models for all regions
F. Increase product diversification and innovation
6.Develop a highly competitive diamond for the tourism sector
Q. Reengineer legal and regulatory framework
R. Educate and train the right people
P. Promote productivity improvement tools
7.Implement a governance &
management framework and culture
T. Establish a sound system of modern governance
U. Implement an efficient management framework
V. Launch a state-of-the-art monitoring system
3. Attract the right amount of
vetted investors and MSMEs
H. Ensure competitive MSMEs grow in Cyprus
I. Increase the quantity and quality of market partners
G. Attract necessary vetted investors
4.Conquer more
better yielding customers
K. Conquer more higher yielding tourists
J. Develop a powerful tourism brand
L. Reduce seasonality
Become, before 2030,an all year-round sustainable destination
receiving 4,8m intl. tourists - 40% of whom during Nov-Apr
Va
lue
fo
rst
ak
eh
old
ers
An exceptional
tourism experience
Attractive investment
environment & opportunities
Better quality of life
and sustainability
Attractive business
opportunities
CUSTOMERS PARTNERS SOCIETYINVESTORS
Re
sults
for
Cy
pru
s (2
03
0)
Tourism
Revenue (M. €)7.000
Wise tourism
index850/1000
GDP
Contribution28%
Total new
Employment47.000
New tourism
keys to develop30.000
Investment required
(public & private) (M. €)20.000
International
tourists (M.)4,8
5.Benefiting the local
society and the environment
N. Reduce carbon footprint of tourism activity in Cyprus
M. Design and manage a tool to assess tourism sustainability
O. Enhance vulnerable economic activities and protect cultural identity
S. Develop air capacity
CYPRUS TOURISM STRATEGY
9
Breaking it down to concrete & measurable actions
22Objectives
KPIs&
Targets
22 Initiatives
85Work
streams
CYPRUS TOURISM STRATEGY
10
A holistic institutional framework
Coordination across Government
ministries and other bodies
Inter-Ministerial Committee for
Tourism
Office of theStrategy Manager
1
3Monitor and
administrate the Strategy development
and execution
National Alliance for Tourism
2Main government counterpart to reach consensus on major issues
National Tourism Authority
4Lead the successful implementation of the Strategy
CYPRUS TOURISM STRATEGY
11
Tourism vision 2030
Becoming, before 2030,
an all year-round
sustainable “premium”
destination
receiving 4,8m intl.
tourists - 40% of whom
between Nov-Apr
CYPRUS TOURISM STRATEGY
12
A sophisticated Simulation Platform has been developed
The simulation
model is a
comprehensive
platform in which
the principal tourism
figures and
macroeconomic
impacts are
projected for 2030
1. CYPRUS TOURIST BEHAVIOUR ASSUMPTIONS BY PURPOSE OF VISIT (2030)
A. INTERNATIONAL TOURISTS
A1. PLEASURE A3. VISIT FRIENDS AND RELATIVES
Behaviour Variables Low Cost Mass Affluent Luxury Behaviour Variables Low Cost Mass Affluent Luxury
Average Length of Stay 9,5 9,5 9,5 10,0 Average Length of Stay 12,0 15,0 18,0 21,0
Average Expenditure / Day 78,75 105,00 157,50 420,00 Average Expenditure / Day 37,88 50,50 75,75 126,25
Price Elast icity of Demand 1,30 1,00 0,70 0,50 Price Elast icity of Demand 1,30 1,00 0,70 0,50
% Usage of Tourism Accomod. 70% 70% 75% 75% % Usage of Tourism Accomod. 0% 0% 3% 5%
Double Occupancy Rate 1,85 1,85 1,85 1,85 Double Occupancy Rate 1,85 1,85 1,85 1,85
A2. BUSINESS A4. DAY VISITORS
Behaviour Variables Low Cost Mass Affluent Luxury Behaviour Variables Low Cost Mass Affluent Luxury
Average Length of Stay 4,0 4,5 4,5 5,0 Average Length of Stay 1,0 1,0 1,0 1,0
Average Expenditure / Day 130,50 145,00 290,00 580,00 Average Expenditure / Day 37,88 50,50 75,75 126,25
Price Elast icity of Demand 1,30 1,00 0,70 0,50 Price Elast icity of Demand 1,30 1,00 0,70 0,50
% Usage of Tourism Accomod. 95% 95% 100% 100% % Usage of Tourism Accomod. 0% 0% 0% 0%
Double Occupancy Rate 1,10 1,10 1,10 1,10 Double Occupancy Rate 1,00 1,00 1,00 1,00
B. DOMESTIC TOURISTS
B1. DOMESTIC
Behaviour Variables Low Cost Mass Affluent Luxury
Average Length of Stay 5,5 6,0 6,0 6,5
Average Expenditure per Day 35,20 44,00 66,00 132,00 Calculat ions:
Price Elast icity of Demand 1,20 1,00 0,80 0,60 Price elasticity in absolute value
% Usage of Tourism Accomod. 35% 40% 40% 40% E = dQ/dP
Double Occupancy Rate (DOR) 1,85 1,85 1,85 1,85
Segment by Degree of Sophistication
Segment by Degree of Sophistication Segment by Degree of Sophistication
Segment by Degree of Sophistication
Segment by Degree of Sophistication
2. CVP POSITIONING STRATEGY OF CYPRUS (2030)
A. INTERNATIONAL TOURISTS
A1. PLEASURE A3. VISIT FRIENDS AND RELATIVES
Market Segments Structure Market Segments Structure
Low Cost Market 20% 10% 5% Low Cost Market 20% 10% 5%
Mass Market 50% 20% 10% Mass Market 50% 20% 15%
Affluent Market 25% 55% 60% Affluent Market 25% 55% 60%
Luxury Market 5% 15% 25% Luxury Market 5% 15% 20%
100% 100% 100% 100% 100% 100%
A2. BUSINESS A4. DAY VISITORS
Market Segments Structure Market Segments Structure
Low Cost Market 20% 10% 5% Low Cost Market 20% 10% 5%
Mass Market 50% 20% 10% Mass Market 50% 20% 15%
Affluent Market 25% 55% 60% Affluent Market 25% 55% 60%
Luxury Market 5% 15% 25% Luxury Market 5% 15% 20%
100% 100% 100% 100% 100% 100%
B. DOMESTIC TOURISTS
B1. DOMESTIC
Market Segments Structure
Low Cost Market 30% 25% 20%
Mass Market 40% 40% 40%
Affluent Market 25% 30% 35%
Luxury Market 5% 5% 5%
100% 100% 100%
World
AveragePremium High-End
World
AveragePremium High-End
CVP Positioning Strategy CVP Positioning Strategy
Premium High-EndWorld
Average
World
AveragePremium High-End
CVP Positioning Strategy CVP Positioning Strategy
CVP Positioning Strategy
Premium High-EndWorld
Average
8. PROJECTED DEMAND & ROOM NIGHTS (2030)
Purpose of Visit World Av. Premium High-end
International 5.834.401 4.848.804 4.374.634
Pleasure 4.887.195 4.062.143 3.648.205
Business 323.520 259.401 232.130
VFR 367.017 310.274 290.877
Day Visitors 256.670 216.987 203.422
Domestic 1.406.745 1.365.611 1.324.477
Total 7.241.147 6.214.415 5.699.111
-1.026.731 -1.542.036
Purpose of Visit World Av. Premium High-end
International 19.126.680 16.388.633 14.987.393
Pleasure 17.858.666 15.287.087 13.958.038
Business 1.239.118 1.032.762 949.577
VFR 28.895 68.784 79.778
Day Visitors 0 0 0
Domestic 1.681.871 1.653.014 1.624.156
Total 20.808.551 18.041.647 16.611.549
-2.766.904 -4.197.002 Difference from World Average
A. PROJECTED TOURISM ARRIVALS
B. TOURISM ACCOMMODATION ROOM NIGHTS
CVP Positioning Strategy
CVP Positioning Strategy
Difference from World Average
0
1.000.000
2.000.000
3.000.000
4.000.000
5.000.000
6.000.000
7.000.000
8.000.000
World Av. Premium High-end
Projected Tourism Arrivals
Domestic
Day Visitors
VFR
Business
Pleasure
0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
World Av. Premium High-end
Tourism Accommodation Room Nights
Domestic
Day Visitors
VFR
Business
Pleasure
9. REQUIRED ACCOMMODATION (2030)
Accom. Cat egory World Av. Premium High-end
Hotels / Hotel Apart. 74.203 66.690 64.293
5* Grand Luxury 742 1.667 3.215
5* 10.388 18.340 22.503
4* 29.681 23.342 22.503
3* 33.391 23.342 16.073
Inns 5.429 3.138 2.167
Comfort 2.715 2.040 1.517
Basic (Economy) 2.715 1.098 650
Special Lodging 8.144 6.277 4.334
Enhanced Comfort 2.036 1.883 1.734
Comfort 2.850 3.138 1.734
Basic (Economy) 3.258 1.255 867
Guest Houses 1.810 1.569 722
Enhanced Comfort 452 471 289
Comfort 633 628 289
Basic (Economy) 724 471 144
Campsites 905 785 722
Enhanced Comfort 226 235 289
Comfort 317 353 361
Basic (Economy) 362 196 72
Total keys 90.492 78.459 72.240
- Current licensed keys -48.144 -48.144 -48.144
Net Total to be developed 42.348 30.315 24.096
-12.033 -18.252
CVP Positioning Strategy
A. TOURISM ACCOMMODATION KEYS REQUIRED
Difference from World Average
0
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
World Av. Premium High-end
Hotel Keys Required
3*
4*
5*
5* Grand
Luxury
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
World Av. Premium High-end
Other Accommodation Keys Required
Inns
Campsites
Guest Houses
Special
Lodging
INPUTS
OUTPUTS
CYPRUS TOURISM STRATEGY
13
3 different growth models for Cyprus
“Standard” model
Aiming to maximise the full growth potential.This model attracts a
higher number of tourists, although not of
revenues (as lower expenditure tourists are
targeted).
A“Premium & wise growth” model
Focuses on growing intelligently and with greater economic,
social and environmental
profitability. This model attracts fewer tourists
than the “Standard” as a result of a demand strategy that targets
higher spending tourists
B“Premium & soft growth”
model
Based on the “Premium & wise growth” model but with an even lower volume of tourists, but maintaining their high
spending profile, therefore it requires less
new developments.
C
THR recommends
this model
CYPRUS TOURISM STRATEGY
* The CTS is adopting a Premium Demand Strategy, according to which by 2030 Cyprus will be visited annually by 4.63 million international tourists,
0.21 million same day visitors and 1.36 million domestic visitors. This will represent lower visitor numbers, with higher expenditure and economic
contribution, and with lower negative impacts.
14
A Premium Demand Strategy is recommended
Longer stay
Higher per day
expenditure
More discerning and
lower negative impacts
Luxury
Affluent
Low cost
Standardstrategy
Premiumstrategy
High-endstrategy
20%10%
5%
50%
20%
10%
25%
55%
60%
5%15%
25%
Mass market
CYPRUS TOURISM STRATEGY
15
Tourism demand results alternatives (2030)
(1) CYSTAT 2015,(2) CYSTAT 2014-Statistics on Movements of Travellers,(3) CYSTAT 2014-Annual data on domestic and outbound trips of Residents of Cyprus
Main variables Units 2015Standard
destination
2030
Premium
destination
2030
High-end
destination
2030
1International
Visitors Thousands 2.656(1) 5.578 4.631 4.368
2Same day
VisitorsThousands 120(2) 257 216 203
3Domestic
TourismThousands 1.297(3) 1.407 1.366 1.324
4Total Visitor
volumeThousands 4.070 7.241 6.214 5.699
CYPRUS TOURISM STRATEGY
16
Tourism demand results alternatives (2030)
(4) No distinction is made between accommodation types (hotels/apartments, licensed/unlicensed) (5) CYSTAT 2014(6) CYSTAT 2014
Main variables Units 2015Standard
destination
2030
Premium
destination
2030
High-end
destination
2030
5Overnight
Stays (4)Thousands 30.545 61.076 53.263 49.037
6
Average
expenditure /
day
Euro 94(5) 102,53 133,91 157,78
7
Average
expenditure /
stay
Euro 794(6) 874,84 1.147,74 1.357,59
8Tourism
ExpenditureMill. Euro 2.352 6.335 7.133 7.737
CYPRUS TOURISM STRATEGY
17
Cyprus’ strategic change agenda
From… …To
Tourism model Standard destination Premium destination
Type of tourism A single product Multiple products
GDP % 13% 28%
Markets UK + Russia (58%) UK + Russia (45%)
Marketing Traditional 360º Digital
Investment Unattractive Attractive
Real estate A problem A solution
PP collaboration Very low High
Seasonality Very high Medium-low
Air connectivity Medium High
Wise tourism Hardly considered Very considered
Governance Inefficient Very efficient
Associationism Weak Strong
CYPRUS TOURISM STRATEGY
18
Table of contents
InternalAnalysis
Vis
ion
ExternalAnalysis
Ke
y iss
ue
s
to b
e t
ac
kle
d
The
Core Strategy
Strategy
Direction
Statements
B. Score CardObjectives, KPI´s & Initiatives
Separate action plans
Growth & territorial models
Implementation framework
Investments, budget and impacts
Roadmaps and critical actions
Social and economic impacts
Ac
hie
vin
g t
he
Vis
ion
1
Preparingthe Strategy
2
Formulatingthe Strategy
3
Planningthe Strategy
4
Implementingthe Strategy
CYPRUS TOURISM STRATEGY
19
Best climate in Europe, all year-round
2.1 The Main Competitive Advantage
CYPRUS TOURISM STRATEGY
20
A great menu of tourism
experiences
A strong system of
tourism experiences
(to be developed)
• Top experiences
(5-10)
• Branded
experiences (3-5)
• Signature
experiences (20-
40)
8 special destination
attributes
The country:
A modern, EU
member state
The destination’s 6
special features:
an ideal tourist
destination
A competitive advantage
per business model
• Sun & Sea
• Itineraries and
culture
•Meetings
•Cycling
• Sport stages
2.2 The 3 reinforcers of the main advantage
CYPRUS TOURISM STRATEGY
21
Scope: Strategic source markets
Belgium
Netherlands
Poland
France
Switzerland
Ireland
Lebanon
Austria
UAE/Qatar
Israel
Ukraine
Greece
Jordan
USA
Bulgaria
Belarus
UK
Russia
Germany
Nordic
So
urc
e m
ark
et
att
rac
tive
ne
ss
Competitive strength of Cyprus
Hungary
Lithuania
Romania
Japan
Italy
ChinaIndia
Invest
Manage
Manage selectively
CYPRUS TOURISM STRATEGY
22
Brand adoption funnel Cyprus - Lots of work to do…
Source: Brand adoption survey
Base: Past visit to Cyprus: 691 / No past visit to Cyprus: 1.025
85%
48%
95%
66%
97%
100%
-15%
-52%
-5%
-34%
-3%
Purchase intention
short/mid term
Affordability
Attractivness
Understanding
Awareness
Total universe
Having visited Cyprus
63%
40%
94%
22%
92%
100%
-37%
-60%
-6%
-78%
-8%
Not having visited Cyprus
CYPRUS TOURISM STRATEGY
23
Positive and negative perceptions
2%
3%
4%
4%
6%
10%
12%
14%
18%
39%
Lots to see and do
Quiet / relax / peaceful
Affordable / cheap
Flight connection / easy to
reach
Good food / Gastronomy
Friendly / warm people
Rich / interesting culture
Landscape / nature
Beaches
Climate / sun
2%
4%
5%
5%
6%
8%
10%
13%
13%
24%
Language barriers
Not enough sites to visit /
too small destination
Migrants, refugees
presence
Economic crisis / poverty
Too long flight, too far
Too hot, unpleasant
climate
Unsafe, crime, terrorism
risks
Expensive, unfavorable
exchange rate
Too busy / touristy /
overcrowded /noisy
Geopolitic problems /
tensions with Turkey
Source: THR based on Brand adoption survey
Base: Total sample: 1.700
CYPRUS TOURISM STRATEGY
24
Scope: Market segments
Short breaks Sun & Sea
4th gen. resortsWellness
Sailing&YachtingHigh-end homes
Nature
Amateur-Pro Sports
Cycling
Golf
Weddings
Itineraries & Culture
Meetings
Pro
du
ct
att
rac
tive
ne
ss
Strategic fit
Adventure
Medical
Invest
Manage
Manage selectively
CYPRUS TOURISM STRATEGY
25
Example: Itineraries & Culture business model
CUSTOMER SEGMENTS
VALUE PROPOSITION
KEY ACTIVITIESKEY PARTNERS
KEY RESOURCES
CUSTOMER RELATIONSHIPS
CHANNELS
REVENUE STREAMS (2030)COST STRUCTURE
Communicate the
market strategy for the “Grand Tour of
Cyprus”
Develop a dedicated
“Grand Tour of Cyprus” website
Establish a network of
“Grand Tour of Cyprus” partners
Develop the brand
“Grand Tour of Cyprus”
Attract renowned
international hospitality brands
Implement a
communication strategy for the “Grand Tour of
Cyprus”
Conduct specialized
educational programs for different
stakeholder groups
EM R
M
Coordinate the
development of “Grand Tour of
Cyprus” with rental companies
A
In
Develop and manage
a network of diverse, thematic and
attractive routes
I
Design and manage
the experiential system of the “Grand Tour of
Cyprus”
MM
M
M
M
Action X Type of action
620.000 arrivals ≈1.280 EUR/arrival ≈ 790 mill. EURX =
CYPRUS TOURISM STRATEGY
26
Example: The Grand Tour of Cyprus
Comfortable “drive yourself” routes
Memorable experiencesAttractive mix of natural and cultural attractions
High quality service
Booking platformCypriot flavours and eating experiences
Boutique hotels 24-hrs road assistance service
CYPRUS TOURISM STRATEGY
27
Example: Itineraries & Culture development plan
Communicate a market strategy for the “Grand Tour of Cyprus”1
Develop and manage a portfolio of diverse and attractive routes2
Design and manage an experiential system of “Grand Tour of Cyprus”3
Actions
Develop and manage a "Grand Tour of Cyprus" accredited network of partners4
Coordinate the development of “Grand Tour of Cyprus with rent-a-car companies”5
Provide training and workshops to key stakeholders involved in “Grand Tour of Cyprus”6
Attract renowned international hospitality brands7
Develop a dedicated “Grand Tour of Cyprus” website8
Develop the brand “Grand Tour of Cyprus”9
Implement a communication strategy for the “Grand Tour of Cyprus”10
CYPRUS TOURISM STRATEGY
28
Table of contents
Vis
ion
ExternalAnalysis
InternalAnalysis
Ke
y iss
ue
s
to b
e t
ac
kle
d The Core Strategy
StrategyDirection Statements
B. Score CardObjectives, KPI´s & Initiatives
Separate action plans
Growth & territorial models
Implementation framework
Investments, budget and impacts
Roadmaps and critical actions
Social and economic impacts
Ac
hie
vin
g t
he
Vis
ion
1Preparing the Strategy
2Formulating
the Strategy
3Planning the Strategy
4Implementing
the Strategy
CYPRUS TOURISM STRATEGY
Present
Vision
Key obstacles
Key enablers
25 key issues
25 key issues identified to be tackled by strategy
CYPRUS TOURISM STRATEGY
30
Example: Issues, Strategy Directions and Objectives (cont.)
Issue / Strategic Question
A. Develop a system of high value experiences in Cyprus.
All over Cyprus we will “wow” our guests with arange of unique and authentic natural andcultural experiences. The public sector will lead thisdevelopment of a new experience culture,applying highly creative methods and smartmanagement, generating happy visitors andprofitable businesses.
Tourism experiences
How can we develop a unique
system of tourism experiences in
Cyprus?
Strategy Directions Objective
B. Significantly improve the value along the customer journey
With the help of an attractive labelling system, wewill increase and guarantee selected qualitystandards and characteristics, guide tourists, andhelp to manage expectations. We will constantlymonitor and manage customer satisfaction acrossthe different labelled destinations, products, andservices.
Satisfaction on services
What can we do to improve service
satisfaction?
C. Dramatically reduce visual pollution in the destination
All stakeholders will make maximum efforts toenhance and protect the visual aesthetic ofCyprus. We will remove unnecessary and/ordegraded signage and advertising panels,protect urban spaces from unregulateddevelopment and pollution and reflect ourcultural heritage in our planning and buildingdesign.
Visual pollution
How can we dramatically reduce
visual pollution in Cyprus?
2. Customer journey’s value
CYPRUS TOURISM STRATEGY
31
Table of content
Vis
ion
ExternalAnalysis
InternalAnalysis
Ke
y iss
ue
s
to b
e t
ac
kle
d The Core Strategy
StrategyDirection Statements
B. Score CardObjectives, KPI´s & Initiatives
Separate action plans
Growth & territorial models
Implementation framework
Investments, budget and impacts
Roadmaps and critical actions
Social and economic impacts
Ac
hie
vin
g t
he
Vis
ion
1Preparing the Strategy
2Formulating
the Strategy
3Planning the Strategy
4Implementing
the Strategy
Cyprus Tourism Strategy 32
Strategic objective Measure KPI Initiative
Outcome 1
Deliver an exceptional tourism experience
Develop a system of
high value
experiences in
Cyprus
Number of experiences developed/ year
2018: 2 brand experiences
2019: 3 top and 10 signature experiences
Set up the
“Experience
Cyprus” program1A
% of tourism services and companies labelled/ year
2018: 15%
2019: 20%
2020: 30%
Introduce the
Cyprus Quality
Label system2
Significantly improve
the value along the
customer journeyB
“Black spots” removed /year
2018: 10
2019: 15
2020: 20
Run a visual
pollution initiative3
Dramatically reduce
visual pollution in the
destinationC
Cyprus Tourism Strategy
CYPRUS TOURISM STRATEGY
Source: THR based on “The Execution Premium”, Kaplan & Norton 33
The Strategy Map
1.Deliver an exceptional
tourism experience
B. Significantly improve the value along the customer journey
C. Dramatically reduce visual pollution in the destination
A. Develop a system of high value experiences in Cyprus
Lea
rn a
nd
gro
wth
Str
ate
gic
P
roc
ess
es
DR
IVER
SEN
AB
LER
S
2.Excel in planningand development
D. Implement excellent tourism development master planning
E. Define and manage clear growth models for all regions
F. Increase product diversification and innovation
6.Develop a highly competitive diamond for the tourism sector
Q. Reengineer legal and regulatory framework
R. Educate and train the right people
P. Promote productivity improvement tools
7.Implement a governance &
management framework and culture
T. Establish a sound system of modern governance
U. Implement an efficient management framework
V. Launch a state-of-the-art monitoring system
3. Attract the right amount of
vetted investors and MSMEs
H. Ensure competitive MSMEs grow in Cyprus
I. Increase the quantity and quality of market partners
G. Attract necessary vetted investors
4.Conquer more
better yielding customers
K. Conquer more higher yielding tourists
J. Develop a powerful tourism brand
L. Reduce seasonality
Become, before 2030,an all year-round sustainable destination
receiving 4,8m intl. tourists - 40% of whom during Nov-Apr
Va
lue
fo
rst
ak
eh
old
ers
An exceptional
tourism experience
Attractive investment
environment & opportunities
Better quality of life
and sustainability
Attractive business
opportunities
CUSTOMERS PARTNERS SOCIETYINVESTORS
Re
sults
for
Cy
pru
s (2
03
0)
Tourism
Revenue (M. €)7.000
Wise tourism
index850/1000
GDP
Contribution28%
Total new
Employment47.000
New tourism
keys to develop30.000
Investment required
(public & private) (M. €)20.000
International
tourists (M.)4,8
5.Benefiting the local
society and the environment
N. Reduce carbon footprint of tourism activity in Cyprus
M. Design and manage a tool to assess tourism sustainability
O. Enhance vulnerable economic activities and protect cultural identity
S. Develop air capacity
CYPRUS TOURISM STRATEGY
34
Example: Initiative and workstreams
1. Install the Cyprus Experience Agency
3. Launch the Signature Experiences programme
4. Promote Brand Experiences
5. Initiate experience marketing and communication system
2. Start the Top Experience programme
Initiative 1.
Set up the “Experience Cyprus
Programme”
CYPRUS TOURISM STRATEGY
35
Example: Initiative and workstreams
1. Establish a Centralised Tourism Planning Unit (CTPU)
3. Review and redraft the Legal and Regulatory Framework
4. Establish a Land Acquisition Strategy
2. Launch Regional Tourism Development Master Plans
Initiative 4.
Implement the National Tourism
Planning Initiative
CYPRUS TOURISM STRATEGY
36
Example: Initiative and workstreams
1. Create a MSME support service
2. Develop a special start-up and entrepreneurship programme
Initiative 8.
Launch a MSME support
programme
CYPRUS TOURISM STRATEGY
37
Example: Initiative and workstreams
Initiative 13.
Elaborate the Wise Tourism Index
1. Define Cyprus’ Wise Tourism Index
2. Measure and publish the Wise Tourism Index results
3. Provide technical support for local authorities for continuous sustainability improvement
CYPRUS TOURISM STRATEGY
38
Example: Initiative and workstreams
Initiative 17.
Reengineer the legal and
regulatory framework
1. Elaboration of the Cyprus Tourism Law
3. Create Public Electronic Platform for legal matters
4. Create a One-Stop Shop/fast track for administrative processes
2. Simplification of the current regulatory framework
5. Facilitate regularisation of the unlicensed accommodation offer
CYPRUS TOURISM STRATEGY
39
Example: Initiative and workstreams
Initiative 22.
Launch performance monitor
1. Determine sector’s performance metrics
2. Launch a Tourism Intelligence Platform
CYPRUS TOURISM STRATEGY
40
Table of content
Vis
ion
ExternalAnalysis
InternalAnalysis
Ke
y iss
ue
s
to b
e t
ac
kle
d The Core Strategy
StrategyDirection Statements
B. Score CardObjectives, KPI´s &
Initiatives
Separate action plans
Growth & territorial models
Implementation framework
Investments, budget and impacts
Roadmaps and critical actions
Social and economic impacts
Ac
hie
vin
g t
he
Vis
ion
1Preparing the Strategy
2Formulating
the Strategy
3Planning the Strategy
4Implementing
the Strategy
CYPRUS TOURISM STRATEGY
41
The 14 main actions of the Quality Plan
Set up the Cyprus Quality Labels (CQL)
Management Unit
Develop the Cyprus Quality Label System
Deploy the CQL System
Wo
rk s
tre
am
sA
ctio
ns
Market and promote the CQL in Cyprus and the
markets
1. Reach an agreement on the organisational structure for the CQL Unit
2. Staffing the CQL Unit
3. Define the labels (concepts plus visuals)
4. Define the quality standards and the rules of the game for the CQL
5. Develop the E-Platform to support the CQL System
6. Provide training to the team of advisors
7. Organise public launching event of the CQL system
8. Conduct initial assessments of applicants
9. Prepare and implement a CQL Marketing Plan
10. Develop rich and engaging B2C online marketing content
11. Audit periodically the Cyprus brand performance
Implement a strong monitoring and enforcement
system
12. Control compliance with the quality standards on a regular basis
13. Continuously monitor customer satisfaction
14. Launch the Quality
Excellence Awards
CYPRUS TOURISM STRATEGY
42
The 13 main actions of the Branding Plan
Implement the branding
system
Align the new tourist
brand visual and
baseline with the
Strategy
Develop an integrated
360º brand
communication system
Wo
rk s
tre
am
sA
ctio
ns
Monitor the brand
implementation and
its performance
1. Achieve a general
agreement on the
proposed brand
identity and its
positioning
2. Approve a tourism
brand architecture
encompassing
product and regional
brands and labels
3. Commission the
design of the new
brand visual and
baseline
4. Test the proposals of
baseline / brand
visual and get the
official approval
5. Implement a strong
launching of the new
brand
6. Commission and
implement Cyprus’ ‘Big
idea’
7. Launch Media
Relations Special
Programme
8. Develop branded
content
9. Launch targeted
online advertising
campaigns
10.Perform co-op
branding actions
11.Appoint a Brand
Manager with clear
responsibilities and
functions
12.Create the ‘Brand
Committee’
13.Audit periodically the
Cyprus brand
performance
CYPRUS TOURISM STRATEGY
43
The 11 main actions of the Seasonality Plan
Create the PPS Product Club and
a PPS Label System
Develop attractive
products for the PPS
Develop a specific PPS
communication strategy
Wo
rk s
tre
am
sA
ctio
ns
Develop and implement a specific PPS sales system
1. Create the Pre
and Post Season
Product Club
2. Design and
implement a PPS
Label System
3. Identify and
prioritise product/
segments with PPS
potential
4. Develop
marketable PPS
experiences
5. Support the
organisation of
PPS events
6. Communicate PPS
advantages
through PR and
targeted
advertising
7. Develop an
attractive website
to market the PPS
offering
8. Provide training for
PPS Product Club
members
9. Develop a “push”
attitude towards
the travel trade
and airlines
10.Foster direct online
sale of PPS
products
Prepare and implement the Winter Season
strategy
10.Prepare and test
the Winter Season
strategy in one
cluster
11. Implement the
tested Winter
Season on all
clusters with
potential
CYPRUS TOURISM STRATEGY
44
Table of content
Vis
ion
ExternalAnalysis
InternalAnalysis
Ke
y iss
ue
s
to b
e t
ac
kle
d The Core Strategy
StrategyDirection Statements
B. Score CardObjectives, KPI´s &
Initiatives
Separate action plans
Growth & territorial models
Implementation framework
Investments, budget and impacts
Roadmaps and critical actions
Social and economic impacts
Ac
hie
vin
g t
he
Vis
ion
1Preparing the Strategy
2Formulating
the Strategy
3Planning the Strategy
4Implementing
the Strategy
CYPRUS TOURISM STRATEGY
45
5 Planning tools for a sustainable tourism planning
1 Touristic Zones of National Interest are large areas (200 -2000 hectares) that hold various resorts that
share big infrastructures and equipment. These areas form tourism destinations by themselves and
usually have more than 6,000 keys.
Tourism sites
& attractions
A
Itineraries
E
Resorts
C
Touristic zones
of National Interest¹
D
Clusters
B
CYPRUS TOURISM STRATEGY
46
Integrated spatial plan guiding principles
3 Establish binding development objectives
3Retain tight control over protected lands - follow a pro-active policy
towards its management and use;
4Strengthen agriculture and forestry through tourism, and accept them as
partners in the tourism development process;
5 Maintain and preserve cultural traditions
6Integrate the knowledge of tourism industry stakeholders into the decision-
making and management system
2 Support the elements of tourism that require special care
1 Recognise the need for action
CYPRUS TOURISM STRATEGY
47
Development areas and clusters
Omodos
LimassolPissouri
Pafos
Kathikas
Polis
Larnaca Ayia Napa
Paralimni
Mazotos
Zygi
Troodos
Marathasa
Nicosia
Development areas
Clusters
CYPRUS TOURISM STRATEGY
48
Example: Eastern region > Protaras - Pernera (Paralimni)
Vision 2030
Paralimni will be the most sought after family
tourism cluster in Cyprus
Customer value proposition
A cluster of resorts offering the best quality
family sun, beach experience in Cyprus,
complemented by adjacency to nature and
exceptional marine experiences
Market positioning
A 4-star ‘sun, sea and family entertainment’
destination
Target
International
Domestic
Key tourist activities and experiences
Multi-generational
Water sports
DivingSun & Sea Sailing / boating
Potential development areas
CYPRUS TOURISM STRATEGY
Note: The numbers have been rounded up, so slight differences may be found.
49
Total investment by typology 2017-2030 (Million Euro)
CYPRUS TOURISM STRATEGY
50
Contribution to tourism growth to the GDP(Euro Million)
0
5
10
15
20
25
30
2015 2020 2025 2030
13%
16%20%
28%15%
3.476
GDP
17.421 Mill €
GDP
24.338 Mill €
GDP
19.953 Mill €
GDP
22.856 Mill €
Note: GDP annual increase of 2,3%
CYPRUS TOURISM STRATEGY
Source: THR projections
* Does not include the direct and indirect required construction employment related with investment
24.00039.941 43.107 50.130
49.500
61.45663.831
69.098
2015 2020 2025 2030
Direct tourism employment Indirect tourism employment
51
Contribution of tourism growth to employment
Total tourism employment (direct and indirect) by 2030
CYPRUS TOURISM STRATEGY
52
Value Gap in Direct Tourism production 2030
- 0% vs. 100% “Wise growth” strategy implementation -
FactorsValue Gap
(Million Euro)%
Increase of tourists 4.911 18
Longer Average stay 5.962 22
Greater Daily Expenditure per
tourist16.416 60
Total 27.285 100