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It is with great pleasure that I participate in today's General Assembly of PASYXE and have the opportunity to address a large and important portion of tourism professionals. My presence here is also an indication of the State's recognition over the years of the very important work that you are doing and the decisive role that PASYXE, one of the most historical Associations of our country, has played in the tourism industry.
Admittedly, in today's international and ever-changing environment, the tourism sector has been called upon to face serious difficulties and obstacles, perhaps more than any other sector in our country.
First, the economic crisis, then the health crisis that really led to almost total paralysis of the tourism sector and recently the war in Ukraine due to the illegal Russian invasion, with its serious consequences that are still continuing.
It is, however, noteworthy and generally accepted that the tourism sector has proven, as it has proven historically in almost every difficult circumstance, that it has the capacity to resist and cope with any challenges, always, and we saw this during the Coronation in particular, and with the support of the State, which over time has recognized your decisive contribution to the local economy. Our hotel industry in particular and all of you have demonstrated on many occasions your strength, will, resilience and, above all, your skill and professionalism. In taking over the reins of our country a few months ago, I was fully aware of the challenges we have to manage, both in the short term, such as the rise in inflation and lending rates at international level, and in the medium term, such as the need to tackle climate change, the green transition and digital transformation, which undoubtedly affects tourism and the competitiveness of our country in general. In the tourism sector, it is well known that the challenges are always many and constant, while external risks are part of the intractable equation.
Despite the challenges, we have the plan, we have the design to face the difficulties, having taken over a robust economy - the former President of the Republic and the former Minister of Finance are here - to exploit and expand any positive actions and programmes that have been developed in recent years that have been successful and to lead the tourism industry to the next level. I am aware that there are long-standing problems, the solution of which requires collective effort and mutual understanding. As a Government, we are ready to move forward with important breakthroughs, to take initiatives, to table bills where needed and we hope for the support of all of you to achieve solutions for the benefit of the wider tourism sector. We want to build on all that has been achieved, on the very important work that has been achieved and I would like, seeing the former Deputy Minister of Tourism here, to note the very important work that he has done, as well as the decision of the previous Government to set up a Deputy Ministry, which was a correct demand of yours and to which the Government has responded.
In this context, to cite a specific example, the issues of sustainability and the adoption of measures that will preserve the environment are now a necessity and also offer opportunities that also affect our tourism product.
This was one of the main reasons why the Council of Ministers adopted on 29 March the proposal for Virtual Net Billing, which gives every hotel unit the right to reduce the cost of energy consumption. The introduction of Virtual net-billing enables businesses that cannot install photovoltaic systems on their premises or on an adjacent parcel to install a photovoltaic system on any parcel, even outside the province where they are located, and have their output offset against the consumption bill of their own premises. This is expected, on the one hand, to significantly benefit the finances of businesses and, on the other hand, to significantly increase the share of RES in energy consumption. The implementation of Virtual net-billing has been a constant request of businesses, especially all of you in the hotel industry, as the cost of electricity significantly affects your competitiveness and the competitiveness of our economy in general.
I am well aware of the tireless efforts that you have made and that you continue to make in order for Cyprus to remain competitive in terms of tourism, the promotional activities that each unit, each group individually does abroad, with the aim of maintaining and strengthening existing markets and promoting the competitiveness of our economy.
I am very well aware of the tireless efforts that you have made and that you continue to make in order for Cyprus to remain competitive in terms of tourism, the promotional activities that each unit, each group individually does abroad, with the aim of maintaining and strengthening existing markets and promoting the competitiveness of our economy. Promoting Cyprus requires cooperation between the private and public sectors, so that there is a common language, a common approach, but also the creation of a modern content and of course a combined use of funds that will allow greater penetration in the markets that attract visitors.
In this context, the Council of Ministers, at its meeting on 31 May, approved the creation of the Tourism Promotion Agency, thus institutionalising the participation of the private sector in the decision-making process for the promotion of our country as a tourist destination.
The actions that have already been taken and which are my pre-election announcements also include the creation of a Tourism Observatory, following the models that exist in other countries, whose mission will be to record and provide in-depth information to all stakeholders in the tourism industry, in order to use it to make those decisions that will lead our country's tourism to an even higher level.
At the same time, of decisive importance for the State is the continuous enrichment and upgrading of the infrastructure that is directly related to the strengthening of the competitiveness of our country's tourism product.
The completion, for example, of the marinas under construction in Ayia Napa, Paralimni, Larnaca, as well as the announcement of the tender for the Paphos Marina are important steps forward that will certainly strengthen the tourist product of our country, as are all the major projects that have been completed: the Limassol Marina, the golf courses and many other infrastructures.
Our governance programme also places particular emphasis on a better geographical distribution of visitors, both foreign and Cypriots. It was an initiative started by Mr. Savvas Perdio. In this direction, actions are being promoted to upgrade the countryside, the mountainous and remote areas of our country, and I am sure you understand the multiple benefits that can arise through such a development.
For example, through the achievement of such an objective, it will be possible to strengthen local communities and create incentives for existing and new residents to stay in the areas, but, at the same time, we will strengthen our efforts to implement a permanent and extremely important common objective, which is none other than the extension of the tourist season, so that our country becomes a year-round tourist destination.
In conclusion, on behalf of the Government and all my predecessors, I would like to thank you for the excellent and constructive cooperation we have with your Association, as well as with the other associations of tourism enterprises, and wish you every success in the work of the General Assembly. Finally, please allow me to make a special mention to Harry Loizidis, who after a 20-year successful career is leaving today as President of PASYXE. Friend Harry, a big thank you from everyone for all that you have offered and I am sure you will continue to offer to the tourism industry of our country.
(RM/NG/EXP)
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