Our View: Hoteliers push for more subsidies despite generous aid

How predictable that the two hoteliers’ organisations, Pasyxe and Stek, are not satisfied with the support measures announced by the government last week and want more.

Last Thursday, the president announced that the government would cover 30 per cent of the wage bill of hotels that were open for the whole of April. This was a generous incentive for hotels to remain open, despite the many booking cancellations they had as a result of the war in Iran.

The reasoning behind this cash incentive was to encourage some hotels to open despite the unusually low bookings and show that it was business as usual in Cyprus, despite the war in Iran. If all hotels stayed closed in April, it would give the impression in our tourist markets abroad that the war had closed the tourism industry and nobody wanted this as it would have a negative effect on bookings for the rest of the year.

At a meeting at the deputy ministry of tourism on Monday, the representatives of Pasyxe and Stek, indicated that the 30 per cent subsidy was not enough and they wanted this increased to 50 per cent. The ministers representing the government at the meeting, correctly, rejected this proposal, saying there was no way the assistance could exceed the 30 per cent mark.

Presumably the hoteliers thought it was worth trying to squeeze a little more money from the taxpayer as the government was in a giving mood. It is quite astonishing that after three bumper years in which the tourist season was extended and occupancy rates were at record levels, hotels want the state to bail them out at the first sign of trouble. Surely, they have the financial muscle to take a hit, for the sake of their industry, without demanding that the taxpayer covers the entire loss they might suffer in April.

Stek and Pasyxe should be grateful for the assistance they were offered by the government, which was trying to keep the tourism industry going at a difficult time. In the final analysis, however, if hotel owners are not prepared to take part of the loss of opening at this time of uncertainty, they should stay closed. Nobody is forcing hotels to open this month or the next. They can tell customers, who have bookings in April and have paid air fares to come to Cyprus, to cancel their plans.

This would be terrible for the image of Cyprus hotels abroad and among tour operators. Hoteliers cannot expect the taxpayer to pick up the bill so they could protect their businesses. They must take some responsibility and accept that all businesses occasionally go through bad times, without demanding that the state covers their losses.