Other major reasons to serve this airport
- Hermes Airports comprises of an international consortium of nine shareholders, which assumed the management and operation of Larnaca and Paphos airports in 2006, under a 25-year Build-Operate-Transfer (BOT) concession agreement with the Republic of Cyprus. The concession includes a plan to develop new passenger terminal buildings and other associated infrastructure. The new passenger terminal buildings were inaugurated in Paphos and Larnaca in 2008 and 2009 respectively
- Paphos Airport serves the island of Cyprus (around 800,000 inhabitants), with easy surface access driven by an excellent road infrastructure to all towns and tourist attractions. The driving distance between the east part of the island and the western part can be driven in around two hours.
- The majority of traffic served by the two airports is leisure traffic and it is driven mostly by inbound tourism. Split of passenger traffic between Cyprus residents and non-Cyprus residents is 30/70% respectively.
- With the financial strains in Cyprus, caused primarily by the collapse of the country’s banking sector in early 2013, both airports experienced a dramatic downturn in their business that year: a 5% decline in traffic and a loss of interest from potential investors to develop the airports’ surrounding land. Adding to these challenges was the bankruptcy of Cyprus’ national airline, Cyprus Airways, in 2015. Despite those negative developments, the airports managed to reverse this trend by achieving growth of 4.4% in 2014, while they expect further growth of 3.3% in 2015, fully replacing the capacity of Cyprus Airways.
- Paphos Airport serves around 45 destinations in 18 countries with the total number of passengers estimated to 2.2 million for 2015. More than 27 airlines operate to/from Paphos Airport.
- The three most important markets served by Paphos Airport are the United Kingdom, Greece and Russia, all three accounting for almost 85% of the total traffic. Germany, Poland, France and Israel are demonstrating great potential to be further developed during the next few years.
- Paphos Airport is of high quality, with its state-of-the-art terminal offering seamless superior service and punctuality, as well as being connected impeccably with bus transportation to the major cities on the island.
- Cyprus’ economy is dominated by the services sector, accounting for approximately 4/5 of the GDP (tourism, financial services, ship management and real estate are the most important sectors).
- Special attention has been given to the tourism sector following the difficulties of the banking sector in 2013. This sector is undergoing major structural changes, aiming on one hand to rebrand the country and change its position/image worldwide, and on the other hand to improve on the product perception and delivery.
- Company formation, tax planning, trusts, foreign exchange trading and fund administration are all strong segments of the business services industry, encouraged by around 50 double taxation treaties and a legal system based on English law.
- Tourism arrivals are expected to exceed 2.6 million tourists on the island by the end of 2015.
- A major success story for Cyprus is the maritime sector, hosting the largest ship management centre in the EU. The Cyprus Registry is classified as the 10th largest merchant fleet in the world and the third largest fleet in the EU.
Marketing and other support
Hermes Airports introduced key incentives to help sustain and attract airlines, but also engaged in strengthening connections with Cyprus’ tourism sector to drive air service development.
For more details on incentive schemes, please click here.
- Market information: statistics and market analysis on request.
- Marketing support through all Hermes Airports’ digital platforms, including the airport website, Facebook, Twitter, YouTube, Instagram and the Blog.
- Launch events to celebrate new routes/airlines.
- Start-up support: incentive amounts are given for new route additions, adjusted according to the weekly frequencies and the period of operation within a year.
- The airports also offer a generous incentive package under a long term /volume related scheme to support the introduction of multiple new routes and/or the establishment of a base.
- Winter scheme: a three-year scheme designed to encourage airlines to continue operating during the IATA winter season and explore Cyprus as a winter destination.
- Landing fees: a three-year scheme designed to encourage and support airlines to increase flights on existing routes.
- Marketing support: may be offered to airlines in support of marketing activities and/or destination promotion that may increase passenger traffic.
Hermes Airports works closely with the Cyprus Tourism Organisation and the Ministry of Tourism to increase the number of foreign visitors through joint marketing activities. They also partnered with the Government of Cyprus to develop a National Tourism Strategy with the goal of jointly recruiting airlines and tour operators, to demonstrate widespread support and commitment to growing the country’s air transport.
To capitalise on the increase in traffic at the airports, Hermes Airports used new technology to better understand its customers. This has led to changes in retail offerings and wayfinding for customers, some of which occur in real time, in response to specific flights from destinations with travellers who have a higher propensity to shop or spend more time in terminal.
Hermes Airports proceeded with a social media presence that focuses on tourism. The multi-platform launch, which included a new website with e-commerce capabilities and profiles on Twitter, Facebook and Instagram, has helped to grow profile for the attractions of Cyprus and create an overriding sense of community that is at the forefront of Cyprus promotion. In addition, social media activity has also provided Hermes with a dynamic channel to build awareness within Cyprus, of its brand and community investment initiatives.
Paphos Airport’s total traffic of 2.2 million passengers comprises of: 70% – inbound and 30% – outbound. The catchment area related to the outbound traffic is primarily the western and southern part of the island. Nonetheless, the airport also serves the needs of passengers from the rest of the island.
- Located 6.5 kilometres southeast from the city centre.
Infrastructure & Operations
- Runway: One runway (11/20) – 2,699 metres;
- Slot Coordinated: Slot facilitated. An independent schedules facilitator has been appointed by the Cyprus Government;
- Operating hours: 24/7;
- Terminals: One passenger building that was opened in November 2008.
Important infrastructure developments and/or other news
- Online parking: Offering a number of options according to the duration of stay providing in this way the opportunity to organise the entire trip more efficiently.
- Passenger traffic: Forecast for 2015 is 2.6 million (1.5 million – scheduled flights; 1.1 million charter flights);
- Freight: It is estimated that more than 300 tonnes will be transferred during 2015;
- Largest carrier: Ryanair, with an estimated market share of 28%;
- Other relevant vital statistics: 27 airlines operating to 18 countries and more than 45 destinations.