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In free fall the profits of tourist complexes

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In free fall the profits of tourist complexes

The dip presented by the tourist arrivals is also reflected in the annual results for 2020 of the largest listed groups of the local tourism industry in the Cyprus Stock Exchange. The reduction of tourist arrivals of 80% for 2020 compared to 2021 due to the pandemic and restrictive measures has also reduced the profits of tourist groups with their turnover shrinking dramatically. As a result of the reduced arrivals, the tourist revenues showed a decrease of 85.4% in 2020 compared to 2019, effectively putting a brake on the previous mostly profitable years.

Indicatively, as stated in the annual financial results for 2020, the Louis PLC group showed a drop in turnover by 92.3%. While in 2019 the turnover had reached 215.6 million euros, in 2020 it reached 16.7 million euros. The group points out in the annual financial results that due to the limitation of the measures against the pandemic from March 16, 2020, the operations of the hotel units in both Greece and Cyprus were suspended while the ships were inactive.

For its part, Lordos Hotels presented losses of 1.27 million euros in 2020 against profits of 1.5 million euros in 2019 with the company's revenue shrinking by 74%. The Constantinou Bros group also showed a decrease in revenues by 88% since the revenues of 39.7 million euros in 2019 amounted to 4.8 million euros in 2020.

In addition, the Amathus group showed a decline in revenue in 2020 compared to the previous year. Specifically, the group's revenues, in 2020, amounted to 1 million euros compared to 4.3 million euros last year, showing a decrease of 75%. “The decrease is mainly due to the Covid-19 virus pandemic as well as the restrictive measures implemented by the government of the Republic of Cyprus,” the annual results report said. Overall, Amathus reported a loss of € 3.29 million in 2020 compared to a profit of € 2.32 million in 2019. As for the Salamis group, it also shows a decrease in profits. In particular, the group's profits for the year 2020 were 2.8 million euros compared to 5.9 million euros in 2019. Finally, the group Leptos Calypso Hotels presented a loss of 4 million euros in 2020 compared to profits 1 , EUR 75 million. It is noted that several hotel complexes in an effort to reduce their operating costs and reduce losses participated in the measures to support their employees and companies, while some of them used the plan to suspend installments and interest payments to financial institutions.

Source: politis.com.cy

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