Ron Aloni, Managing Director of Leonardo Hotels and Resorts Mediterranean shares how the Covid-19 crisis has affected his view on the hospitality sector in Cyprus, ahead of his participation to the webinar on Global FDI Trends in Hospitality Investments: The Case for Cyprus.
What is Leonardo Hotels’ presence in Cyprus and how and where are you planning to expand?
We have around 1,200 rooms in Paphos in three different properties/hotels, and we have a Boutique Spa Hotel in Protaras. We were starting to build our NYX which is a 200-rooms Lifestyle Hotel in Nicosia, which we are freezing for the time being, and another 170 rooms in Limassol. We had in mind to keep on investing in other destinations such as Ayia Napa, Larnaca and maybe more, but for now we have decided to hold on our horses.
What makes the Cyprus hospitality market attractive to an international brand like yours?
For us, as a well-known company in Israel, Germany, England and other destinations in Europe where our brand is very well known, it is an advantage to use the same brands marketing-wise, because we are so familiar with these destinations and basically our main segmentations towards Cyprus. Also of course, there are many other factors that are relevant in Cyprus: not too much bureaucracy, flexible taxation system, good weather, easy to fly in etc.
Do you anticipate a rapid or gradual recovery of investment in Cyprus following the current downturn?
By the time covid-19 started we were quite happy, although we were quite worried about the collapse of Thomas Cook. Since the covid-19 influence, we have been very worried especially because we do not see the end yet, or when we will be able to restart all the engines of producing income. Therefore I could not anticipate right now when the recovery will take place and if there will be a recovery.
Now we are reaching the latter part of the summer season, what are the main lessons you have learnt from the experience of the COVID-19 crisis?
Since Cyprus is an island without aviation, there is no tourism and since covid-19 has such a bad effect on aviation the markets are limited, therefore we are worried for the whole situation.
It seems that the whole 2020 season has gone. The only market that could support us is the local/domestic market, the Cypriots, which unfortunately is not big enough for the number of rooms existing in Cyprus. Of course, the length of stay of the Cypriots is much shorter and does not replace the entire duration of the season.
What do you see as the major trends coming up in hospitality and travel in Cyprus?
First of all, if there is no solution to covid-19, I do not really believe that anything could change. Hopefully, the world will create a vaccine and then I believe and hope that the FIT Market will lead the markets for years to come.
To hear more from Ron Aloni and other speakers about the opportunities in hospitality real estate investment and development in Cyprus, register to the Global FDI Trends in Hospitality Investments: The Case for Cyprus webinar here.