Wednesday, March 2, 2011

The future of Cyprus Tourism without Cyprus Airways

Cyprus Airways possible bankruptcy is probably the biggest scandal in the recent history of Cyprus and defiantly the biggest in the history of Cyprus tourism as an industry.
The airline has been for years now the easy vote tank for all political parties in Cyprus. The airline was run by incompetent political boards of directors for many years whose only worry was how to jump from the darkness of a board of directors to the enlighten stage of the Parliament or of a Ministry.

The airline suffered different stages of transformation, all of them invisible to the general public since their corporate image is the same since the seventies. Despite the intends of making the airline a profitable company nothing went right. The entry of the airline in the stock market was a fiasco. Private investors, mostly workers from the tourism sector lost lots of money, during the crack of the stock market in Cyprus in 2001. The airline stocks from 10 Cyprus pounds (17 euros) to 5 cents of the euro today. The state did nothing to prevent it and until today people who invested in the airline have very bitter memories and lost fortunes.
The people who work in the travel sector of Cyprus wanted to invest their savings in a company with future and growth perspectives. At that time Cyprus Airways was the sole airline of the Country with lots of great slots and many promising routes in an almost monopolistic regime.
The scandal of Hellas Jet, the sister airline of Cyprus airways which never had a plane and never had a flight that was covered quickly from the government at that time, was only the beginning of the end. Purchasing 2 long hall A340 was probably the other whole in the finances of the company. The bad management was always covered by the different governments of whatever political colour. Now the situation is dramatic. The workers of the airline have made steps to cut down costs by accepting lowering their salaries and taking more responsibilities but the measures come too late am afraid.

Closing down the airline would mean the biggest crash of Cyprus Tourism. The Cyprus Tourism Organisation technocrats and Board of Directors are under lots of pressure since they have no airline to rely a decent strategic plan on. The credibility of the destination will suffer and the country will lose competitiveness. And this happens at a time when the Turkish Cypriots are moving with alliances to boost tourism in the occupied part of the island.

Cypriot economy relies on tourism and for the last 3 years numbers are not the best. The big tour operators find Cyprus too expensive in comparison with destinations like Crete, Turkey of even Dubai. The possible bankruptcy of Cyprus Airways by the end of 2011 (my prediction is November 2011), will give the final shot on the head to the already troubled economy.

Now, what should we do today? In my modest opinion the only way out the Cypriot Travel business man has is to take the airline sector in his hands. Cyprus has a great potential in tourism especially attracting visitors from the eastern part Europe. This potential can only be developed when the Travel Sector of Cyprus makes a move to find a strategic investor and in collaboration with him get the airline sector back on the air.

Hoteliers, Travel agents and local authorities have an important role to play, the matter is now who is going to lead such a movement. The key in my opinion is creating a new airline that will undertake all the slots of Cyprus Airways in the Cypriot and foreign airports, use the trained staff of the airline but be legally based in an EU country that will assure the flights over Turkey. The business model needs to be adapted to a low-cost airline that gives access to Tour Operators as well and open to the public serious and collaborative web strategy.

The path is long but is an one way road to pull Cyprus out of the Tourism crisis and probably is a unique opportunity to redesign Cyprus Tourism from scratch. Having the experience of the past and understanding the errors we made the recovery is possible only under a sensible and open leadership.

Sunday, February 27, 2011

Dinning out in Pafos, Genesis Steak House is the place

If you are looking for a good steak in Pafos you need to contact Genesis Steak House. Jack Koufetas (Iakovos) has been for the last 30 years serving the best steaks you ever tried. Tradition and homemade food in combination with the “old” hospitality habits will make dinner unforgettable.

I strongly recommend a rare pepper steak served with the fresh organic veggies picked from Jack’s garden, accompanied by a red wine from the low mountains of Pafos (why not a Shiraz of Tsangarides Winery) and as desert you need to try Alice’s Pourekia (Goat fresh cheese fritters with honey).
The only way to taste it, is visiting the place.

Contact Jack and book a Table.

Tuesday, February 22, 2011

Minister of Finance of Cyprus foresees closing of Cyprus airways. Hahaha he is a prophet...!!

Οnce upon a time there was a small country in the Mediterranean called republic of Cyprus. This country thought that it was the superpower and therefore created two huge airlines to fly its corrupteted politicians and their followers for holidays, business and pleasure. Well then the dream went down the drain; suddenly the global financial crisis uncovered the corruption. Left, right, centre and whatever other politicians jump out of the airplanes to blame each other. Well Cypriots are not stupid, we all know that the boards of directors of Cyprus Airways were gaining votes and favour by putting people to work in the airline. We all know that they were involved in commissions even for purchasing peanuts, we all know that the airlines (Eurocypria and Cyprus Airways) were another stage for some politicians to get the lights on them.

Yesterday the new board of directors presented the salvation plan to the parliament with the presence of the Minister of Finance who said that the 20 million needed to be paid immediately do not really guarantee the feasibility of the airline. We have someone to blame, Turkey is the one to blame, Turkey breaking all the rules and all the norms of the EU does not let Cypriot planes fly over its airspace and obliges the pilots to fly around it and spend more time and fuel to reach the destinations (especially the ones in the ex Soviet Union). My question is simple. Did we know that ? We did, it is happening since 1974. Now, instead of having a strict unmovable business plan that included this risk we had an airline that knew very well how to spend. Trips and traps were organised, fam trips and trips for fun were made. Salaries that were paid to people who had less productivity than a carrot, salaries paid  to directors who were managing by not walking around. Now we are called as citizens to pay from our pockets all these corruption. Well I will not, they can come and arrest me.

Next May 2011 we will be called to vote for the parliament, well again I will not go and I hope that more will follow.




Tuesday, February 15, 2011

Experience Grand Resort Limassol

GrandResort Limassol Cyprus
We are in Limassol having a great training seminar with the middle management team of one of the most important 5 star hotels of the town and of Cyprus.

The Grand Resort Limassol, formerly known as Hawaii Grand Resort is at this moment closed for minor refurbishment. The ownership and the management of the hotel decided to sign up the staff of the hotel to the Training program supplied by the Higher Hotel Institute of Cyprus, a training program sponsored by the EU Cohesion Fund and the republic of Cyprus.

Today, we are dealing with Marketing and Online Marketing trends.

I would like to thank Marios (HR Manager), Kiki (Executive Housekeeper), Pavlos (Frond Office Manager), Aristos ( Reservations Manager) and Antonis (Purchasing Manager).

The experience for me as trainer is simply fantastic, thank you all for your active participation.
(Thank you http://www.flickr.com/photos/renaissancechambara/ for the picture)

Saturday, December 18, 2010

Happy 2011 for all of us, especially for those who with very little can achieve a lot !!

2010 has been a hard year for many people and businesses. Many of the people that would normally would get this message are without a job. Many work under very tough financial conditions, others are struggling to keep their business above the “sea level”. 

Avantless this year will not send any paper post cards and will give no giveaways and instead we have created a team in KIVA, a team where we suggest you join. KIVA is an online platform for Micro – Credits. We do not ask you to donate anything, we ask you to lend 25 Dollars to small entrepreneurs in countries that are under development. 25 dollars for a businesswoman in Guatemala or in Palestine have the value of 10,000 Dollars in a develpped country. 

We have been working with KIVA for 3 years now and all the money we have lent out has been paid back 100%.

In Avantless we believe that:
• People are by nature generous, and will help others if given the opportunity to do so in a transparent, accountable way. 
• The poor are highly motivated and can be very successful when given an opportunity and everybody deserves an opportunity. 
• By connecting people we can create relationships beyond financial transactions, and build a global community expressing support and encouragement of one another. 
• The online world facilitates those connections and creates REAL links with people despite their race, color, financial situation or other barrier the offline world puts. 

Kiva promotes: 
• Dignity: Kiva encourages partnership relationships as opposed to benefactor relationships. Partnership relationships are characterized by mutual dignity and respect and Avantless supports actively KIVA’s work by suggesting you to support this initiative. 
• Accountability: Loans encourage more accountability than donations where repayment is not expected. It is a give and take relationship therefore both sides get a greater satisfaction. 
• Transparency: The Kiva website is an open platform where communication can flow freely around the world. In Avantless we give huge importance in transparency and we urge you to join us. 

Join us on Avantless Team in KIVA and lets help those who need so little to make so much. 

Happy Holidays to all. 

Regards 

Petros Mavros
Avantless

Saturday, November 13, 2010

Cyprus Airways fails with Russian Market

According to valid unofficial information, Cyprus Airways failed to agree with tour operators from St. Petersburg in Russia to take over the flights of the bankrupt Eurocypria airlines.

Cyprus airways and the Russian stakeholders did not agree on the prices the airline asked and therefore the negotiations have failed. 

This is huge hit towards the bleeding Cypriot Tourism industry since it lets Cyprus tourism without many options to re-conquer the Russian market. Here is worth mentioning that the Cypriot state managed to simplify the visa issue for Russian visitors and only this action gave an increase of 50% on tourism arrivals from the Russian Federation. 

It seems that Cyprus Airways cannot cope with the flights undertaken by the already bankrupt Eurocypria and the promises of the Cypriot administration cannot be fulfilled at least in the short term. This turnout leaves the steam engine of the Cypriot economy without fuel. The Cypriot tourism stakeholders have just had the fist signs of the incompetiveness of their state which will cost to the country much more than tourism arrivals.

Cyprus air transport is going through a very tough period due to corruption and wrong management. The stubbornness of the Cypriot government to hide problems for many years, the boards of directors of the two airlines need to go under investigation now and clarify who is responsible for this very serious economic disaster the country is about to face. At the same time brave decisions are needed to privatise the air transport sector and give back to the market the good name and good reputation in such a way that the tour operators and travels regain trust to Cyprus as a destination.