The Spectrum of the Seas, a luxurious cruise ship, has officially been transferred to the flag of Cyprus. This move is seen as a major boost for the country’s tourism industry, as the ship is expected to attract a large number of visitors to the island nation.
The Spectrum of the Seas, which is operated by Royal Caribbean International, is one of the largest and most advanced cruise ships in the world. It features a wide range of amenities, including multiple dining options, a state-of-the-art fitness center, and a variety of entertainment options.
The decision to transfer the ship to the Cyprus flag was made after a thorough evaluation of the country’s maritime laws and regulations. The Cypriot government has been working to attract more cruise ships to the country in recent years, and the Spectrum of the Seas is seen as a major step forward in that effort.
In addition to the economic benefits of the ship’s presence, the Spectrum of the Seas is also expected to have a positive impact on the country’s environment. The ship is equipped with advanced environmental technologies, including a state-of-the-art waste management system and energy-efficient engines.
The Spectrum of the Seas is set to begin its first voyage under the Cyprus flag in the coming weeks, and is expected to make several stops in various ports around the island. The ship’s arrival is seen as a major boost for the country’s tourism industry, and is expected to bring in significant revenue for the country.
The Ministries of Finance, Transport and the Legal Service are racing to find a commonly accepted formula, which will aim to reduce the amount of charges decided by the management companies in the port of Limassol.
The deadline set by the investors in the state expires at the end of February and if no solution is found by the 28th of the month, they will finally proceed on March 1 to impose increases in the charges, which are expected to be of the order of 16%.
The report of the State Aid Supervisor is expected to be decisive for the developments, as it will be determined whether the intention of the state to deduct part of its revenues from the profits of the companies, as stipulated in the contract between them, contradicts the directive of the General Directorate. EU State Aid Competition.
According to information gathered by StockWatch from sources of the Legal Service, as well as from officials who are aware of the developments, it seems that through the relevant legislation and the port management agreement, between the Ministry of Transport and the affected companies, there is a “window »To deduct the state part of its revenues from the works in the port.
The agreement stipulates, inter alia, that the state may adjust the port charges on the basis of the percentage of revenue it receives, without favoring managers or other stakeholders, and argue with the European Commission that the proceeds will be diverted to benefit of the national economy.
It is noted that under the concessions for the management of the port of Limassol, the state absorbs 63% of the revenues of the container company (Eurogate) and 52% of the company that deals with general cargo (DP World).
To date, € 201.6 million has flowed into the state coffers from the income of investors in the port of Limassol.
In 2019, before the global health crisis erupted, the state had revenue from management companies of € 55 million in addition to the cost of tens of millions of euros spent by investors to upgrade and replace machinery at the port.
Under the Port Authority regime, the average revenue was close to € 20 million per year.
“We hope that if the EU is convinced that the effort of the Cypriot authorities is not considered as selective state aid, a window may open,” Stavros Michael, Director General of the Ministry of Transport, told StockWatch.
“It is a difficult task as it has many legal and other aspects that need to be thoroughly studied and elaborated,” said Mr. Michael, noting that as a state “we must ensure that any decision is legally and procedurally correct.”
According to the Ministry of Transport DG, technocrats who examined the evidence submitted to the relevant ministry by the management companies to support their decision to increase the charges, seem to have a basis.
These are data, he added, which are based on the industrial production index, which takes into account, among other things, the inflation trend.
Due to the negative effects of the prolonged pandemic crisis, this indicator has increased due to production costs.
As Mr. Michael explained, one of the factors influencing the formation of the industrial production index is the fluctuations in international crude oil prices.
“Regardless of all this, I believe that even if the golden section is not found for the state to absorb the increases, under the circumstances we are all experiencing, it will be to the benefit of the companies themselves to reconsider their initial decision and reduce the “percentage of the charges they claim”, observed the DG of the Ministry of Transport.
Representatives of the companies operating the Limassol port told StockWatch that their decision to increase the charges is in line with all the provisions of the concession agreement.
They argued that the increases were justified on the basis of a relevant formula deriving from the contracts concluded with the Cypriot government.
The companies submitted a relevant note to the parliamentary finance committee, in which they record the size of the decrease in their turnover, due to the negative effects of the pandemic crisis.
The companies’ initial decision was to impose the increases in charges at the beginning of last January and the beginning of February.
Following strong reactions from the trade union organizations, which provoked the intervention of the Ministry of Transport, the companies agreed to suspend their decision until the end of February, in order to give the competent ministries time to handle the whole issue.
Marios Tsiakkis, Secretary General of the CCCI, believes that the Cypriot merchants and consequently the economy should not shoulder a 16% increase in charges.
so that the state relinquishes its share of the increased revenue. We understand the effects that caused a reduction in the turnover of the companies, however the increases they ask for we consider that under the current conditions are excessive and will cause further inflation “, Mr. Tsiakkis remarked.
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Cyprus will make a fresh attempt at creating a ferry connection with Greece in 2022, following the failure to attract investors to operate a passenger route.
Media outlet Capital.gr said the Deputy Ministry of Shipping would make a new call for tenders to establish a seasonal ferry link.
The call is expected sometime at the end of October.
Reportedly, maritime companies told officials they would be interested in a seasonal ferry connection instead of a regular one, the main provision deterring operators from submitting tenders the first time around.
To revive the ferry connection abandoned 21 years ago between Greece and Cyprus, the shipping ministry launched a failed tender for a three-year contract with annual state aid of €5 mln.
The European Commission has already approved the second tender for a seasonal connection.
According to Greek media, the connection will run between April or May to September or October.
Thus, the contractor carrying out the trip will use the ship on other routes during the winter season.
Under the new tender, the contractor will not be obligated to carry cargo on the same vessel.
If the contractor chooses to carry commercial cargo on the same route, they will lose out on the part of the subsidy.
The state subsidy only concerns passengers, under European rules, and is essentially a subsidy of the carrier’s travel expenses.
In other words, there will be an expense recording mechanism, and each trip will be subsidised accordingly.
The contractor will be compensated for any rise in fuel costs, up to 10% of the overall subsidy.
Authorities will be looking to change the call port in Greece, moving from Keratsini to Attica’s main port in Piraeus.
State aid is expected to remain at €5 mln annually, while additional changes may be made to the tender that is not subject to approval by Brussels.
Next January, authorities in Cyprus will be looking to select the winning bidder, aiming to see the ferry link launched sometime in May 2022.
According to Capital.gr, the tender will also allow for the expansion of the ferry link to a third neighbouring country, such as Egypt or Israel.
Salamis Tours operated the last passenger ferry link to Greece from 1993 until 2000 when demand faded and trips stopped.
After two decades of being cut off from the rest of Europe, travellers from Cyprus are still hoping they will be able to hop on a ferry next summer and disembark in Piraeus, Greece, to continue their journey.
Nicosia earned approval to subsidise the link with state funds after complex talks with the EU.
Source: Financial Mirror
Despite setbacks, Cyprus maritime authorities are determined to revive a passenger ferry link to Greece after a tender failed to attract any interest from shipping companies earlier this year.
The Deputy Ministry of shipping is engaging in a battle to revive interest in the ferry link through improving the tender documentation previously approved by Brussels.
The Shipping Ministry sought to revive the connection with a €5 mln annual subsidy approved by the EU’s Directorate-General for Competition but had received no interest from operators willing to take on the task.
“We have currently submitted new tender documentation for the ferry connection between Piraeus Port and Limassol. We hope that it will be given the green light soon by the European Commission,” said Andreas Karamitas, a Shipping Ministry spokesperson.
In comments to the Financial Mirror, Karamitas explained the government took it upon itself to resubmit the documentation in an attempt to improve conditions, “making them more flexible and closer to the market’s criteria”.
The ministry has redesigned the tender documentation having in mind that state coffers should not be abused.
“We are looking into ways of increasing the state aid percentage-wise by decreasing the frequency of trips to and from Cyprus.
“For example, there is no reason why the state should be financing a ferry link during the winter when ships will probably be leaving Limassol empty,” said Karamitas.
He argued that more aid could be given to interested parties during the summer months when demand is higher.
He said Shipping Minister Vasilis Demetriades is optimistic that new tender documentation will be approved soon by the European Commission.
Asked if the ministry has thought of increasing the €5mln subsidy already approved by the EU, Karamitas said that would have to be negotiated with the EU.
“What we can say at the moment is that we are committed to reviving the ferry link with Greece.
“In the outside case the EU returns a negative verdict, we will be looking into alternative ways of reviving the link.”
He said the Cyprus-Greece ferry link is a top priority.
Salamis Tours operated the last passenger ferry link to Greece from 1993 until 2000 when demand faded and trips stopped.
After two decades of being cut off from the rest of Europe, travellers from Cyprus hoped they would be able to hop on a ferry this summer and disembark in Piraeus, Greece, to continue their journey.
Nicosia earned approval to subsidise the link with state funds after long talks with the EU.
Greece also welcomed the new ferry service, but the pandemic has decimated holiday travel.
Under EU rules, the state subsidy was solely associated with the passenger aspect of the sea line.
Source: Financial Mirror
MIAMI/LONDON, March 25, 2021 – This summer, Royal Caribbean International guests can soak up the Mediterranean sun and explore the captivating coastlines of Greece and Cyprus on all-new 7-night cruises departing from Limassol, Cyprus. Starting July 10, Jewel of the Seas will call Cyprus home for the first time and sail to the picturesque shores and ancient ruins in Cyprus, Greece and the Greek Isles through October. The new 2021 summer itineraries from Cyprus will open for bookings on April 7. « We know how eager our guests are to enjoy a getaway this summer, and these sailings, which include a mix of fantastic destinations and must-visit islands, make for the perfect getaway,» said Michael Bayley, president and CEO, Royal Caribbean International.
«Cyprus is a beautiful island, and we are thankful to the Cypriot government for their support and enthusiasm in making these incredible itineraries possible». Savvas Perdios, the Deputy Minister of Tourism for Cyprus, said, «We are delighted that Royal Caribbean will call Limassol its homeport for the first time ever. We have every confidence that Royal Caribbean’s presence in Limassol will be beneficial to Cyprus and, similarly, we are very confident that as a homeport and as a country, Cyprus will live up to the expectations of Royal Caribbean and its guests». Guests can rest assured their well-being and that of the crew members and communities visited are Royal Caribbean’s top priorities.
Details on the health and safety measures to be implemented will be announced at a later date. The comprehensive, multilayered health and safety measures to come will continue to be led by science and leverage expert guidance from the Healthy Sail Panel, Royal Caribbean Group’s Head of Public Health and Chief Medical Officer, and local government and health authorities. In addition, travelers must meet the travel requirements of their home country and Cyprus. The most up-to-date policies can be found on Cyprus’ tourism website.
Royal Caribbean’s new 7-night sailings from Cyprus continue the cruise line’s measured and safe return to cruising the world once again.
About Royal Caribbean International
Royal Caribbean International has been delivering innovation at sea for more than 50 years. The cruise line continues to revolutionize vacations with itineraries to more than 270 destinations in 72 countries on six continents, including Royal Caribbean’s private island destination in The Bahamas, Perfect Day at CocoCay, the first in the Perfect Day Island Collection. Royal Caribbean has also been voted «Best Cruise Line Overall» for 18 consecutive years in the Travel Weekly Readers’ Choice Awards. Royal Caribbean International is applying the recommendations of its Healthy Sail Panel of public health and scientific experts to provide a safer and healthier cruise vacation on all of its sailings.
Health and safety protocols, regional travel restrictions and clearance to visit ports of call, are subject to change based on ongoing evaluation, public health standards, and government requirements.
The deputy ministry of tourism on Monday welcomed the Royal Caribbean cruise line’s decision to include Cyprus in its summer schedule.
According to the ministry, Royal Caribbean has included Cyprus in its cruise schedule for June, July and August, while the company will be using for this route its “most modern and advanced ship”, expected to be delivered soon.
This cruise programme includes departure from Israel with stops in Cyprus. The ship is expected to arrive in Cyprus about 15 times, between June and August 2021, with the prospect of additional stations in the coming months, the ministry said.
“Cyprus is one of the few countries in the world that has already succeeded their inclusion in important cruise programmes,” it added. Due to these cruise programmes, it said, Cyprus will be hugely promoted in the coming months.
The ministry said that an important role to the Royal Caribbean’s decision to include the island in its programme was the agreement between Cyprus and Israel to allow from April 1 arrivals of Israelis who have been vaccinated without them having to present PCR tests or self-isolate upon their arrival.
“The passengers will be all Israelis, who will have already been vaccinated,” the ministry said. Before boarding, travellers will present two negative tests while, during the cruise, they will be subject to additional checks, it added.
The ministry said that this important agreement for the country was reached after its officials’ “tireless and intensive efforts” which lasted about six months, after the whole project started in September 2020.
“The agreement is a great success for cruise tourism in our country and paves the way for further growth at a time when this sector has taken a massive blow due to the pandemic,” it added.
The deputy ministry of tourism also thanked the transport ministry and the deputy ministry of shipping “for their valuable support and the provision of know-how in order to successfully conclude this agreement for our country.”
Source: Cyprus Mail