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The development of agrotourism in Cyprus

The challenges facing the tourism industry in Cyprus have not gone unrecognised by the authorities. In mid-1980s, when it became evident that the development of tourism was becoming, in a sense, too successful, measures were introduced to re-focus the direction and scale of tourism development away from the burgeoning coastal resorts. In particular, policies were introduced which aimed to encourage tourism development in the traditional hill resorts, backed up by marketing strategies designed to attract more diverse, middle to upper income tourists (Andronikou, 1986).

Since then, successive plans and policies have sought, albeit with limited success, to achieve a more balanced approach to tourism, implicit objectives being to slow the growth in tourism; to improve and diversify the tourism product; to attract higher-spending tourists; to reduce the impacts of seasonality; and, to spread the benefits of tourism around the island. Over the last decade, the principal vehicle for achieving these objectives has been the development of agrotourism.

The agrotourism programme in Cyprus, launched by the CTO in 1991, is designed primarily to facilitate the socio-economic regeneration of rural areas in Cyprus. More specifically, the programme seeks to:

*revitalise rural communities in order to counter out-migration,

*channel a more significant proportion of tourism income directly to rural communities,

*diversify the Cypriot tourism product by providing an alternative to the beach holidays and by attracting new, specialised segments of the tourist market,

*develop a uniquely Cypriot product based on traditional rural culture and philoxenia¯¯Cypriot hospitality,

*protect and conserve existing natural and built environments and to preserve and strengthen traditional lifestyle and culture (PIO, 1999).

In short, agrotourism in Cyprus embraces the `typical’ socio-economic aims of rural tourism development. It is not intended as an alternative to traditional rural occupations or lifestyles, but rather as a supplementary income enabling everyday practices to continue. At the same time, however, it encompasses the broader objective of repositioning the island’s tourism product.

5. Agrotourism in Cyprus: from policy to practice

Following its launch in 1991, about 50 rural villages both in the Troodos mountain region and elsewhere, including the Akamas, Limassol and Larnaka regions, were initially selected, on the basis of their traditional architecture, general attractiveness and the willingness of local communities, for involvement in the programme. Two development schemes were then enacted. Firstly, the CTO commissioned architectural studies of the villages’ traditional architecture and financed the design and completion of a variety of civic projects. These included the restoration of village squares, the creation of nature trails and specific projects to conserve and restore traditional architecture. A total of over $2 million was invested in such projects.

Secondly, the CTO initiated a financial incentives scheme, whereby interest on loans undertaken by the owners of traditional properties to finance their restoration and conversion into tourism establishments, such as accommodation units, taverns and folk art centres, was partially subsidised. By 1998, some $4 million had been invested by the private sector on restoring and converting about 60 traditional buildings in the selected villages, with the government contributing an additional $500,000 in interest payment subsidies. The majority of these buildings were converted to accommodation units, primarily as serviced/self-catering inns and small hotels, although some as villas for rent. By 1999, the total capacity of bedspaces had reached 444 (CTO, 1999).

In addition to these schemes, efforts were also made to encourage the revitalisation and promotion of traditional Cypriot socio-cultural practices as an integral element of the agrotourism `product’. To this end, a variety of educational and awareness programmes for local communities were initiated. For example, a collection of traditional recipes, compiled and edited by the Ministry of Agriculture, Natural Resources and Environment in association with independent culinary groups, supported efforts to promote traditional Cypriot cookery amongst rural restaurateurs. Similarly, specific training modules in other areas, such as Cypriot folk-dancing and music and traditional crafts, as well as general business and service skills, were developed by the public education authorities in co-operation with the CTO.

It was also recognised that the success of the agrotourism programme would be dependent upon effective marketing. In 1995, therefore, the CTO established the Cyprus Agrotourism Company, a non-profit association drawing its members from the owners of agrotourism businesses throughout the island. The main purpose of the company is to market the agrotourism sector, principally through a central reservations system. At the same time, the Company publishes an annual `Traditional Holiday Homes Guide’ for distribution to the trade and general public. However, the CTO also foresaw that participation on the part of agrotourism entrepreneurs in a common marketing/distribution network would facilitate the control and uniformity of prices and services offered, as well as co-ordinating individual marketing and training efforts, thus representing a cohesive and mutually supportive marketing effort across the sector. The CTO continues to play a central role in the Company. In 1998, for example, it provided CY£15,000 in financial support, whilst the Director General of the CTO also presides over the Agrotourism Company’s Board of Directors.

Since the agrotourism project was first initiated, then, it is evident that the CTO has provided significant financial and technical support to address many of the challenges which commonly face the development of rural tourism. To what extent, however, are the project’s objectives being met?

6. Agrotourism: a success story?

There is little doubt that, in terms of the restoration and improvement of traditional village properties and facilities, the agrotourism project has been successful. By 1999, all the civic projects financed by the CTO had been completed, whilst the number of accommodation units in operation continued to increase.

Furthermore, by 1998 a total of 29,245 guestnights in agrotourism establishments were recorded, an increase of 46 per cent over the 1997 total of 20,013. However, these figures give little indication of the true success of the agrotourism project as measured against its objectives. For example, the apparently healthy number of guestnights disguises a relatively small increase in low average occupancy rates across all accommodation establishments, from 21 per cent in 1997 to 23.5 per cent in 1998. Indeed, as the following evidence suggests, the development of agrotourism in Cyprus faces a number of problems which potentially militate against its potential as a rural development and tourism diversification policy.