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Tourism performance is positive but there must be no complacency

The tourist sector’s positive performance in the last two years is not a reason for complacency, Kostas Koumis Deputy Minister for Tourism said, addressing an event hosted by the Deputy Ministry to mark the World Tourist Day, that was held in Eleftheria Square, Nicosia, on Friday.

“We need to redefine the role of tourism for the economy, entrepreneurship, the environment and the society,” he said.

According to Koumis, the most significant challenge which acts as an existing threat to society as a whole, the economy and tourism is climate change.

“And for this reason, the Deputy Ministry has incorporated a special chapter on green transition in the updated National Strategy for Tourism,” he added.

Referring to the performance of the sector this year, Koumis said that data show that in the period from January to August, arrivals increased by 4.1%, compared to the respective period last year, while they marginally increased compared with the same period of 2019, which was Cyprus’ historic record year in terms of tourist arrivals. Furthermore, he added that revenue from tourism in the first six months of the year were up by 4.2% year on year, despite the fact that 2024 is marked by many adversities.

However, Koumis pointed out that the course of tourism is not secure, as a series of challenges, with the greatest stemming from climate change, call for the need to take immediate measures.

“Each destination’s competitiveness is directly attached to the implementation of sustained and environmentally responsible policies, and this is a one-way street if we want our country’s tourist sector to be competitive,” the Deputy Ministry said.

EU Adopts New Package Travel Rules With 14-Day Refund Requirement

The Council of the European Union adopted updated rules on package travel, introducing stricter requirements for refunds, transparency and consumer protection across member states. Updated provisions revise the existing directive and define obligations for travel providers offering bundled services such as flights, accommodation and transfers.

Clarifying The Package Travel Directive

The updated directive clarifies the definition of package travel and excludes certain linked travel arrangements from its scope. Coverage applies to services sold as a single product, including combinations of transport, accommodation and additional services. This revision standardizes how travel products are classified and clarifies rights and obligations for both providers and consumers at the point of purchase.

Enhancing Transparency And Consumer Rights

New rules require providers to disclose key information before and during travel, including payment terms, visa requirements, accessibility conditions and cancellation policies. These disclosures aim to reduce disputes and improve consumer awareness. Defined refund timelines include a 14-day period for cancellations due to extraordinary circumstances and up to six months in cases of organiser insolvency. The measures address gaps identified in earlier versions of the directive.

Ensuring Accountability And Trust In Travel Services

Organisers must implement complaint-handling systems and provide clear information on insolvency protection under the updated framework. These provisions aim to improve accountability across the travel sector. Previous disruptions, including the collapse of Thomas Cook and travel restrictions during COVID-19, exposed weaknesses in refund processes and consumer protection. Updated rules respond to those issues.

Implications For Cyprus And The Broader Industry

Tourism accounts for approximately 14% of Cyprus’s GDP, with package travel playing a central role in visitor flows. Major operators such as TUI and Jet2 provide structured travel offerings that support demand. Such operators contribute to revenue stability and help extend the tourism season by securing transport and accommodation in advance. Greater regulatory clarity may support continued sector growth.

A Model For Future Consumer Protection

Clearer rules on vouchers, refunds and insolvency protection now apply across the European Union. These measures aim to reduce consumer risk in cross-border travel. Implementation across member states will determine the impact on both consumers and travel providers. The framework may influence future regulatory approaches in the sector.

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