Prominent international tour operator TUI Group has reported a significant increase in tourist interest in Cyprus, with demand for holidays on the island replacing that for traditionally popular destinations Egypt and Tunisia.
This development is the result of serious security concerns throughout the latter countries, according to TUI representatives.
Though consecutive incidents which have brought tourist safety in several jurisdictions into question were predicted to negatively impact the international community’s travel appetite, TUI has revealed it expectation that its earnings will, in fact, rise by some 10% year-on-year.
Indeed, the tourist giant’s strategic partnerships in a plethora of markets renders it well-positioned to take advantage of increased interest in destinations including Cyprus, the Canary Islands, the Caribbean, Mexico and Cape Verde.
Holiday and tourism companies halted planned holidays to the Egyptian resort of Sharm al-Sheikh in November. That followed the cancellation of trips to Tunisia earlier in the year, after the death of 38 holidaymakers, most of whom were TUI customers, in a massacre on a beach in June.
The security threat was further intensified by the attacks in Paris which killed 130 people on Nov. 13.
TUI's joint chief executive Peter Long explained that TUI's growth forecast for the current financial year took into account the costs of disruption in Egypt.
"We have the ability to absorb this and still be comfortable with the guidance of at least 10 percent growth in earnings," he said on Thursday, December 10.
For the three years to 2018, TUI also reiterated guidance for underlying annual earnings (EBITA) growth on a constant currency basis of at least 10%.
For the 12 months ended September 30, TUI reported underlying core earnings of €1 billion on a constant currency basis, 15.4% higher than last year and beating the top end of its own guidance for a rise of between 12.5 and 15%.
Group profit had taken a €52 million hit from the cancellation of Tunisia holidays in the period.