The Development and Improvement of Ayia Napa – Sustainability of the Ayia Napa Hotel Industry

Ayia Napa is the most popular tourist destination of Cyprus. Every year more than 700,000 tourists from all over the arrive and enjoy the experience of Ayia Napa. Ayia Napa is not a clubbing destination, clubbing and partyinh are part of it, but do not represent the resort. Ayia Napa offers variety and quality, and is the place for all types of tourists, families, couples, upscale tourists, sports tourism and of course clubbing. Ayia Napa has been smartly transformed into areas dedicated for each type of tourist and in a way that they do not interfere with each other. That is one of the main reasons behind the success of the resort. The resort successfully managed to remove the label of the clubbing destinations and was re-branded as the place for all types of tourists.

Significant improvements and investments took place the past ten years, such as the refurbishment of many hotels and bars and an improved municipality infrastructure. Moreover, the future planning which includes, projects such as an 18 hole golf course and a 500 capacity marina, will contribute significantly to the re-branding of Ayia Napa as an upscale destination.

80% of the accommodation consists of 3+, 4 and 5, star hotels, the hotel apartments and low quality accommodation are decreasing and being taken out of the tourism market. Furthermore, the low quality accommodation has been transformed into residential or rooms for hotel employees.

Neither the government, however, or the local authorities had any contribution to this upgrade process. Cyprus has entered the European union as a rich country and no subsidies were available for the hospitality industry, unlike Greece where for each refurbishment they were subsidies available for up to 40% of the total cost.

The hospitality industry in Cyprus and in Ayia Napa faces a number of challenges and problems. the first is the seasonality, others include the expensive high airport charges, which discourage the planning of new flights (even though there is an incentive plan used currently by Ryan Air) and the lack of any incentives or help to tour operators (which represent 95% of our tourism product)

Ayia Napa, before 1974, was a small fishing village who experienced uncontrolled and rapid development. Immediately after the Turkish invasion due to the need of creating a proper tourism strategy the government of Cyprus promoted the resort as a tourist destination. Gradually hotels of all types were build, restaurants, bars and clubs were all over the place. The resort now receives approximately 33% of all Cyprus tourist arrivals. The reasons are a lot but the main ones are the following

Firstly, is the networking build by the local tourist authorities such as the Agia Napa municipality and the local hotel association. The second is the continues improvement of the Ayianapa hotels. Hoteliers realized that the will be more profitable if they invest and upgrade their product. This is what happened the past five years. Five star hotels are true five star hotels, in terms of both service and product. the majority of the hotels now are upgraded and successfully target tour operators specialized products such as families and couples

A walk in the resort will persuade you about this fact. Three plus, four and five star hotels are everywhere and increasing in number, while the low quality accommodation, that of hotel apartments is decreasing.

Ayia Napa has a future as an upscale destination. Discover it.