"We are cautiously optimistic that we will have a good season as we did in 2013 or even slightly better," Association President Haris Loizides said in statements following a meeting with technocrats of Cyprus' lenders, who are on the island for the third review of the economic adjustment programme. Loizides said the Troika technocrats (European Commission, European Central Bank and the IMF) acknowledged that the Cypriot hoteliers pay much higher taxes than in other competitive tourist destinations.

He referred to the immovable property tax, which has increased five times in the past two years, to local administration taxes, sewage tax and overnight fees. "All these are a burden which the tourist industry must withstand while paying its loans at the same time," he said, adding that Troika technocrats have acknowledged that Cypriot hoteliers pay high taxes.

Furthermore, replying to a question, Loizides said the Troika technocrats raised the issue of loans in arrears by hoteliers. "We explained to them that what is necessary is the restructuring of loans with long-term maturity over 20 years and low interest rates. If this is achieved, I believe that the vast majority of hoteliers will start repaying their loans," he added. Loizides also said he discussed with the Troika team the strategic plan aiming to increase tourist arrivals in Cyprus from 2.5 million to 3.5 million within the next four years. "If we achieve this, then our economy will benefit the most but we need to increase the competitiveness of the economy," he said.

Source: Famagusta Gazette