Two Russian tour operators transferring tourists to Cyprus and Greece have gone bankrupt sparking concerns over the possibility of a domino effect, with the underlying causes attributed to an over-supply of tourist packages in low prices.
In statements to CNA President of Association of Cyprus Tourist Agents (ACTA) Victoras Mantovanis said that two Russian companies which offer tourist packages to Greece and Cyprus have gone bust within two weeks.
On Saturday, he said, the Russian company Labirint went bankrupt, adding that the tour operator brings to Greece about 150 to 200 thousand Russian tourists and to Cyprus about 10 to 15 thousand.
Two weeks ago, he noted, the Russian company Neva went bankrupt which brought to Cyprus about 3 thousand tourists.
Replying to a question as to the causes, Mantovanis expressed the point of view that the reasons lie with an abrupt expansion of the Russian tourist market in general. That is to say, he explained, tour operators have expanded to a great extent in the last three to four years resulting in a `bubble`.
At the same time, Mantovanis pointed out that serious problems have come up due to an excessive supply of tourist packages which in turn forces tour operators to constantly drop their prices and have special offers. As a result many cannot cope, he added.
He described the situation as `very serious`, noting that others might follow in the footsteps of the two first companies.
Cyprus is not greatly affected, he said, since the two companies would bring to the island about 20,000 Russian tourists out of a total of 600,000.
