Investigating Marketing Opportunities of a Politically Challenged Island Destination: The Case of North Cyprus

Investigating Marketing Opportunities of a Politically Challenged Island Destination: the case of North Cyprus Erdogan H. EKIZ, PhD School of Hospitality, Tourism and Culinary Arts, Taylor’s University College, Malaysia erdogan.ekiz@taylors.edu.my Kashif HUSSAIN, PhD School of Hospitality, Tourism and Culinary Arts, Taylor’s University College, Malaysia kashif.hussain@taylors.edu.my Stanislav IVANOV, PhD Department of Tourism, International University College, Bulgaria stanislav.ivanov@vumk.eu Abstract The present study highlights the impact that politics can have on marketing and overall destination competitiveness through the example of North Cyprus. Political stability is an important prerequisite for establishment, growth and survival of a successful tourism industry. The Island Cyprus had some political conflicts in 60’s and 70’s as a result the Island has been divided de facto into two states after 1974: “Republic of Cyprus” administrated by Greek Cypriots and “Turkish Republic of Northern Cyprus” (North Cyprus) administrated by Turkish Cypriots. South Cyprus is a well developed tourist destination whereas North Cyprus, as a non-recognized country in the world, is facing several problems and challenges in marketing itself as a tourist destination. The aim of this study is to investigate marketing opportunities of a politically challenged island destination. Practical implications and effective destination marketing options are discussed for small island states. Keywords: Destination marketing, political challenges, SWOT analysis, North Cyprus. 1 Electronic copy available at: http://ssrn.com/abstract=1591372 Introduction Tourism is often regarded as the world’s largest and most diverse industry and a major global economic force. According to the World Travel and Tourism Council’s (2010: 6) figures, tourism generates 7.892 billion USD economic contribution worldwide (9.9% of all earnings) while employing 238.3 million people (8.4% of total employment) representing one in every 11.9 jobs. Jafari (2001:29) posited that tourism made a great improvement from humble figures to leading ones, in particular noted that “…in 1950, 25.3 million international tourists arrivals resulted in 2.1 billion USD receipts…in 1998, 625 million international tourists generated $ 445 billion receipts”. This figure reached to 922 million international tourists in 2008 creating over $ 1.1 trillion, corresponding to $ 3 billion a day, with a 1.7 per cent increase in real terms (United Nations World Tourism Organization, 2010). Tourism is becoming an increasingly important component in the economies of many developing nations, but not without controversy (Mowforth & Munt, 1998; Honey, 1999). In particular, some developing nations have promoted themselves as international tourism destinations, as a means of attracting foreign investment and incoming cash flow. The shape and path of tourism development has differed considerably between countries, depending not only on their natural attractions, but also on accessibility, infrastructure, government policies, and market moves by major international tourism operators (Holloway, Humphreys & Davidson, 2009). Very broadly, for example, the Caribbean has become known for its coastal resorts, and east and southern Africa for their wildlife. South-east Asia, Australia and Latin America are known for a combination of natural, cultural and adventure activities (Starr, 2003). Earnings from the tourism industry are crucial for small island economies as well, yet they face many challenges as tourist destinations (Milne, 1992). Small islands are physically separated by water and long distance from the tourist generating markets. As a result the accessibility of the destination suffers as tourists outside the island can reach there by only two means of transportation - air and water (excluding islands near coasts that can become accessible via bridges). Another challenge is the limited local market for capital, labour, food and water supplies and other products used in the tourism industries, which limits the competition among suppliers and increases prices. Furthermore, according to Hall (1994), political stability is also an essential prerequisite for attracting international tourists to a destination and a fundamental precondition to the successful establishment, growth and survival of a successful tourism industry. One of the very interesting examples is the divided 2 Electronic copy available at: http://ssrn.com/abstract=1591372 island Cyprus where North Cyprus has been suffering from political instability (Ioannides & Apostolopoulos, 1999; Seddighi, Theocharous & Nuttall, 2002) and facing several challenges to market itself as a tourist destination. Embargoes-sanctions placed on North Cyprus, an unrecognized island state in the world, is affecting its economy, transportation sector (no direct transportation means except the ports of Turkey) consequently, number of tourists arrivals, welfare of producers and farmers, and also construction sector. All of these obstacles halt tourism developments and establish a challenge for the State to market itself as a tourist destination. The Competitive Destination Kotler, Haider and Irving (1993) acknowledge that we are living in a time of ‘place wars’, where places and destinations are engaged in competitive behavior within the tourism industry. The Mediterranean, the most tourist visited region of the world, is also affected by increasing competition from many new, more exotic and cheaper destinations that offer the same core sun-lust tourism product (Buhalis, 1999). The attractiveness or competitiveness of a destination is often dependent on a mix of push and pull factors, and varies from one destination to another. Weaver and Lawton (2002) suggest that some of these pull factors are: geographical proximity to markets, accessibility to markets, availability of attractions, cultural links, availability of services, affordability, peace and stability, positive market image and the pro-tourism policies. Similarly Mathieson and Wall (1982) argue that the characteristics of potential destinations play an important role in the final choice of the destination. For example: • Environmental features and processes: These include for instance what kind of nature the destination has (mountains, lakes, sea), amount of sunshine, the types of animals, temperature and other environmental processes. • Economic structure: This includes among other things the level of economic development and the diversity of the economic base. • Political organization: The political structure of the destination is essential. Factors such as existence of capitalism or socialist principles; incentives and constraints; the roles of national, regional and local tourist organizations have an influence on tourist. • Level of tourist development: This encompasses the level of local involvement in tourism, nature and diversity of attractions, types and quality of accommodation the destination has to offer; activities, and eating facilities. 3 • Social structure and organization: This category includes factors such as the demographic profile of the host population, the strength of local culture and the levels of health and safety. In addition for some tourist things like, religion, women in workforce and moral conducts have an enormous effect on the decision about the choice of the final destination. Perceptions, attitudes and values towards language, traditions and gastronomic practices affect on the decision as well. It is to the political challenges that hamper North Cyprus’s marketing efforts and by extension its ability to optimize its economic potential that the discussion now turns. Background of Political Dispute in Cyprus The island Cyprus is situated at the eastern part of the Mediterranean Sea, 224 km long and 96 km wide, with 768 km of coastline is very rich in terms of landscape, history, and cultural heritage. The history of the third largest Mediterranean island of Cyprus is filled with waves of conquest and colonization. For most of the past five thousand years, Island which is known as the mythical birthplace of Aphrodite has been occupied by Phoenicians, Assyrians, Arabs, Greeks, Normans, Franks, Genovese, Venetians, Ottomans, and British. The Ottomans conquered Cyprus in 1571 and Ottoman rule has been shifted to British annexation in 1878. In 1925 Cyprus officially became the Crown Colony of Britain. Till 1960, the Island had experienced a struggle among the Cypriots and against Cypriots and the British for independence. In 1960, Cyprus gain independence after Greek and Turkish communities reach an agreement on a constitution which was a “…complex power-sharing arrangement” (Fisher, 2001, p. 310). The tensions between the Greek Cypriot majority and Turkish Cypriot minority came to a head in December 1963, when violence broke out in the capital of Nicosia, due to the new proposals on constitution in favor of Greek Cypriots (Hasguler, 2007). Despite the deployment of United Nations (UN) peacekeeping forces random intercommunal violence has emerged throughout the Island in 1964. In 1974, a Greece sponsored attempt to seize control of Cyprus (Symeonidou, 2005) was met by military intervention from Turkey. In 1983, the Turkish-held area declared itself the ‘Turkish Republic of Northern Cyprus’ (North Cyprus), but it is recognized only by Turkey (Fisher, 2001). Although hosting two countries on one island is not an exception worldwide (for example, Haiti and the Dominican Republic and British St. Martin and the Dutch St. Maarten), the situation in the island of Cyprus is peculiar because currently the North Cyprus 4 is recognised only by Turkey (Gursoy, Ekiz & Chi, 2007). Moreover, the two sides of the Island share the same city as their capitals - Nicosia for Republic of Cyprus and Lefkosa for North Cyprus. North Cyprus covers an area of 3,355 square kilometers which is approximately one third of the whole Island. The neighbors of North Cyprus are Turkey, Syria, Egypt, Israel, Lebanon, Greece, and South Cyprus. The UN efforts to reach an agreement to reunite the divided island have ended when the Greek Cypriots rejected the UN settlement plan in April 2004 Referendum. The Island has entered the European Union on 1 May 2004. The aim of the referenda was to achieve a common will among the island for unification before Republic of Cyprus’s entrance to European Union. It was expected that with the European Union accession, financial aids will be provided to the Constituent state in the north and this will affect the economy positively, expand the number of tourists, increase the welfare of producers and farmers, develop the construction sector and embargoes will be removed, and Turkish Cypriots will have their own identity. Following the defeat of the UN plan in the referendum there has been no attempt to restart negotiations between the two sides till 18 April 2008, on contemporary the negotiations are still in an inefficient scale. Since then, although the Island has entered the European Union (by 1 May 2004) where Greek Cypriots (South Cyprus) enjoys the benefits at its full potential being a European Member Sate and Turkish Cypriots (North Cyprus) merely practices any significant benefit. No matter, the results of the referendum were not favoring North Cyprus from the south side, the state is setting up great initiatives to develop tourism sector for a brighter future. Therefore, the present study investigates the marketing opportunities of a politically challenged island destination, examining the case of North Cyprus in specific. An Overview of Tourism in the Island of Cyprus Republic of Cyprus continues to be one of the most preferred locations for vacation in Europe. Despite the damage of the political and military problems in 1974, there was a fast recovery and tourist arrivals exceeded the 1973 level by 1979, although it took several more years before the bed capacity reached the levels of 1974 (Dana & Dana, 2000). The number of visitors was 24.000 in 1960, this number reached half a million in 1982, a million in 1988, 2 million in 1994 and 2.40 million in 2008 (Cyprus Tourism Organization, 2009). The expansion in tourist arrivals was facilitated by a parallel rise in the construction of new hotels, apartments and other tourist accommodation located almost exclusively in the coastal regions. There was an unprecedented rise in the number of beds from under 13.000 in 1980 to 5 over 78.000 in 1995, and 96.500 at the end of 2004, an average annual rate of increase of 12.8 percent. Tourism receipts in 2008 are CY £ 1.858 million (roughly 2.506 million USD). Receipts from tourism represented 47.6% of the 2008 total receipts from exports of goods and services (Cyprus Tourism Organization, 2009). In contrast to the South which is a well developed tourist destination, North Cyprus is still developing and its economy is handicapped by the international political and economic isolation of the country, as well as by the lack of private and governmental investment. The tourism industry’s contribution has also not been optimal. This is due to political constraints such as North Cyprus being an internationally unrecognized state and the imposition of political embargoes (Altinay, 1994). As Altinay, Altinay, and Bicak (2002: 178) mention, “in spite of its significant contribution to the North Cyprus economy, the tourism industry is lagging behind its competitive strength when compared with its main rivals”. While South Cyprus has turned into a well-established destination, North Cyprus has struggled to achieve economic growth and escape from its political and economic dependence on Turkey (Yasarata, Altinay, Burns & Okumus, 2010). Tourism Development in North Cyprus and Available Potential Segments The tourism industry has been one of the main sectors for North Cyprus economy. Despite its comparative advantage of a rich geographical and natural resources, North Cyprus has not been able to fully harness that potential to enhance its competitiveness due to the embargos, restrictions in transportation (direct ferries/ships and direct flights), and competition with other countries. Since the second half of the 1980s tourism industry in North Cyprus has grown steadily which has resulted in opening new travel agencies and construction of new hotels, restaurants, bars, cafes, and pubs and increasing competition among them. The North Cyprus tourism industry hosted 791,036 tourists, with its bed capacity of 13.000+, in 2008 (Statistical Yearbook of Tourism, 2009). Moreover, the ratio of net tourism income to the trade balance is 44.1% (303.2 million USD). Almost 376.2 million USD is the value added in tourism sector in 2008 (Department of Statistics and Research, 2009). Main tourist generating markets have been Turkey, Britain and Germany. According to the Statistical Yearbook of Tourism (2009), there are 122 tourist accommodations in North Cyprus, with a total capacity of 13.000+ beds. These accommodations include 13 five-star hotels, 6 four-star hotels, 19 three-star hotels, 17 twostar hotels, and 19 one-star hotels. There are also 48 tourist accommodations classified as special class hotels, boutique hotels, bungalows, traditional houses or guesthouses. These 6 establishments provided employment for 10.857 people, including 17 casinos, which are the 7% of the total employment (Statistical Yearbook of Tourism, 2009). There are 137 travel agencies contributing in tourism developments for the State. Adult entertainment is legal in North Cyprus, it is a sensitive issue and difficult to investigate in terms of number of tourists, and the income it provides, however, there are 46 nightclubs and 9 pubs. The annual occupancy rate for hospitality organizations was accounted to be 30% in 2007. Cansel, Bavik and Ekiz (2008) argue that official tourism figures for North Cyprus might not reflect the real situation. In other words, they claimed that official figures fail to include the earnings from the education, airline, accommodation sectors and gambling industry. By considering these tourism related activities they calculated tourism revenue per capita for North Cyprus as 1.288 USD. This figure is almost five times more than the Turkey’s per capita tourism income and half of the South Cyprus. According to Cansel et al. (2008), the main reasons for tourists visiting North Cyprus have been education, gambling, sex tourism, leisure. Existing infrastructure and growth in North Cyprus tourism indicate that education, gambling, sex and sea, sun and sand (regarded as SSS) tourism will continue to be the main potential segments of tourist expectation in the future (Cansel et al., 2008; Yasarata et al., 2010). Education sector is also one of the important income-generation sectors beside tourism which generates over 230 million USD per year for North Cyprus. There are total 37.000+ registered students, among which 25.000+ are from Turkey, 4.000+ are from 65 different nationalities and remaining being local students, studying at five public and private universities (2 public & 3 private) in North Cyprus. In addition to this, Middle East Technical University (METU) of Turkey, which is one of the oldest and most respected universities, has been accepting students to its campus in Güzelyurt region (North Cyprus). Each of these foreign students spends approximately 12.000 USD for tuition fee, accommodation, food and other. As mentioned above, the UN has sanctioned boycotts prohibiting direct international flights to the North (Scott & Asikoglu, 2001). After 2002, due to the UN efforts and European Union interests, a two-sided agreement took place between South and North Cyprus (opening of the borders between the two states on the island, a new market) and as a result, led to the provision of an easier transportation possibility for foreign tourists (but still no direct flights). This policy change also meant that Greek Cypriots could now visit North Cyprus. The opening of the borders have also increased the potential of gambling and sex tourism as well as SSS tourism and the VFR (visiting friends and relatives) market. It has 7 also created new hopes for the development of religion tourism as Cyprus owns a rich cultural heritage. According to the Forbes magazine, money transaction generated by gambling industry reached 900 billion USD worlds wide (http://www.ntv.com.tr/news). There are 21 active casinos generating 172 million USD annually in the North Cyprus (Ozgec, 2006). Eighty million USD of this amount is generated by gamblers coming from the Greek visitors of the island; approximately 90 million USD of the total casino revenue is created by the gamblers from Turkey and gamblers with other nationalities. The remaining 2 million USD is assumed to be generated by the high-income level students for whom entrance to the casinos is forbidden. Likewise, it is also forbidden for local Turkish Cypriots to enter and play in casinos. Beside SSS holidays, adult entertainment (sex tourism) has a high demand. Due to the growing number of visitors, the funds are growing in numbers with ongoing investments. By the year 2006 there are 336 prostitutes working with legal permit in 46 licensed night clubs and 9 pubs. These clubs and pubs contributed approximately 4.7 million USD annually to North Cyprus economy by paying outlay on permits, taxes, visa and passport fees, social security, reserve fund, weekly health checks in hospitals and so on (Cansu, 2006). One prostitute earns approximately 300 USD daily which accounts up to 43.8 million USD annually. Presumably, half of this money paid by the tourists visiting North Cyprus which makes 21.9 million USD contribution to the tourism revenues. Revenues of national airlines (Cyprus Turkish Airlines) and monopolistic ferry company contribute to the tourism revenues. Other private airlines and shipping companies also contribute to the tourism revenues by their taxes. Cyprus Turkish Airlines carried 946.000 passengers paying approximately 200 USD per person, generating a total of 189.2 million USD tourism revenues. Sea Transportation Company carried over 300.000 passengers paying 50 USD per person, which makes 15 million USD approximately. Conjecturally, half of these passengers are foreign tourists and contributing over 102.1 million USD totally 94.6 million USD from air and 7.5 million USD from sea transportation. The MICE (meeting, incentives, conferences and events) and niche markets, such as nature/adventure, religion and sport - are also growing in importance. However these segments are still in fairly new so that their contribution to the economy is not significant. There are other investment opportunities available in North Cyprus tourism as well, such as marinas, golf and country clubs, theme parks and luxury retirement communities. Nonetheless, as an internationally isolated small island state, North Cyprus suffers from 8 challenges such as scarcity of resources, comparatively small domestic market, difficulties in forming and running businesses and accessibility to markets to promote the destination and its products (Altinay & Hussain, 2005; Gursoy et al., 2007). According to Statistical Yearbook of Tourism (2009), currently, North Cyprus is not able to offer differentiated tourism products in comparison with the neighboring Mediterranean states. Consequently, demand for tourism is not effectively increasing. For the North, there is a need to revise its rules and regulations, and variety of tourism products which will generate competitive advantage and differentiated tourism products. The SWOT analysis (Table 1) of the North Cyprus tourism provides favorable conditions for tourism developments. Creating differentiated tourism products based on comparative advantage over similar destinations may help develop proper goals and strategies for North Cyprus’s tourism industry. North Cyprus tourism industry should focus on developing tourism based on regional differentiation in the Mediterranean. More specifically, it should adopt special interest tourism besides mass tourism and develop tourism to benefit from the natural and manmade environments. Also, a review of the strengths and opportunities suggests that North Cyprus tourism industry should develop tourism in coordination with the NGOs, local authorities, private sector and the universities. Tourism administrators should focus on a tourism development model which is in harmony with other sectors, such as transportation and education. They should adopt appropriate models to meet the social, economic and physical transport facilities (especially to deal with direct flights). Finally, administrators should structure tourism industry and policies free from political influences. 9 Table 1: SWOT Analysis of the Tourism Industry in North Cyprus • • • • • • • • • • • • • • • • • STRENGTHS Undiscovered and unspoiled. Hospitality of citizens. Mild climate of Cyprus which provides an ideal situation for holiday in all seasons. Variety in flora and fauna. Beaches ideal for swimming and all kinds of water sports. Variety of Cyprus cuisines. High quality of natural resources. Richness of cultural and historical resources. Environmental friendly accommodation establishments. Availability of new investment areas. OPPORTUNITIES Political determination and importance committed to tourism. The Eastern Mediterranean’s high tourism potential. Growing potential of special interest tourism in the world. Growing collaboration between Turkey and Greece. Growing economical power of Turkey and possibility of European Union membership. Ongoing talks about Cyprus problem and European Union membership. Having another airport, Gecitkale, that can e used for tourist purposes. • • • • • • • • • • • • • • • • • WEAKNESSES No direct flight from other countries (except for Turkey). Cheaper flights to other Mediterranean countries including South Cyprus. Lack of “product image”. Lack of variety in provided services to answer the changing tendencies in market. Lack of public transportation. Political isolation. Lack of marketing segmentation and differentiation knowledge. Lack of infrastructure. Insufficient urban planning. Lack of financial resources. THREATS Competition with the other Mediterranean countries. Environment pollution (in Mediterranean Region). North Cyprus political indefiniteness. Existing embargos. Uncertainties in Middle East. Possible conflicts in Balkan region. Economical problems and crises in Turkey. Current Trends in North Cyprus When current trends are analyzed, it can be clearly seen that preferences are shifting from the main SSS tourism stream to more specific niche segments. Destination countries aim at using their strengths and comparative advantages to increase their shares from these specific niches. The importance of nature-adventure trips, eco-tourism, purchasing and leasing land from exotic countries, culture, education and health tourism are increasing in popularity. Countries, using their unspoiled resources wisely, are more likely to be the popular destinations of the future. North Cyprus, with its unspoiled natural and cultural resources, has this advantage. 10 Both Turkey and Republic of Cyprus are the direct competitors of North Cyprus. However, this competition is concentrated on SSS tourism, where North Cyprus has no distinct strategic advantage. Since 2002, Turkey has pledged to establish a USD 300 million dollar investment project in North Cyprus with the help of Turkish businessmen. A part of these investments include the Bafra region, which provides the region with six quality hotels, comprising three five-star, one three-star and two two-star hotels creating an increase of 3104 bed capacity. While this investment would undoubtedly increase bed capacity, the target market is gamblers whose spend is often concentrated within the hotel and not spread among businesses located in the region. Education industry in North Cyprus is also being challenged by a fall in university enrolment from Turkey. South Cyprus is also expanding into education tourism and is developing campuses for six new universities. This will create competition for foreign students planning to visit Cyprus Island for education purposes. Education tourism has a 59.5% share among the overall tourism revenues and has a vital importance for North Cyprus economy (Cansel et al. 2008). If, for any reason, a decline occurs in education tourism, this may create radical changes in per capita tourism revenues. Due to the two-sided agreement between both administrative bodies of Cyprus (opening of the borders between the two states on the island in 2002), tourists recently have started to fly to South Cyprus and pass the border to the North Side by land transportation. This new development and the direct competition from the Turkish airline companies cause a decline in the revenues of the national airline, Cyprus Turkish Airlines. As this situation continues, it will also cause a loss in the North Cyprus tourism revenues. Other challenges which have affected tourism growth in North Cyprus are: low levels of training, unacceptable service standards, poor public transportation, lack of personnel at ports of entry, English language deficiencies, duplicitous representations of North Cyprus by tour operators, and unfair treatment of Turkish tourists (Altinay et al., 2002; Altinay & Hussain, 2005; Cansel et al., 2008; Scott & Asikoglu, 2001; Yasarata et al., 2010). Marketing North Cyprus As mentioned above, the main tourist generating markets have been Turkey, Britain and Germany for North Cyprus for which the apparent marketing channels are being used to target tourists in these countries. These are mainly magazines, brochures, websites, travel agencies and tour operators. Magazines and brochures has been the mainstay for marketing North Cyprus for decades, however with the rise of technology and internet, many websites 11 and forums have been developed for marketing. Due to North Cyprus political situation, the Government and Ministry of Tourism routinely monitor the content of these websites and highlight appropriateness to the developers of these websites. Several internet-based forums have been developed where Turkish Cypriot expatriate community monitor these forums and spread a positive word-of-mouth about North Cyprus, one of the most significant examples is Facebook. Ministry of Tourism in North Cyprus is offering several incentives to local and international travel agencies and tour operators to attract tourist e.g. for every tourist brought to stay more than 3 nights in North Cyprus the Government will pay 50 Euros to those travel agents or tour operators to support their efforts, also the for large scales number of tourists the government is willing to share some of the promotional expenses. The renowned tour operators bringing tourists to North Cyprus routinely publish several newspaper and TV advertisements in main tourist generating countries. The Ministry of Tourism facilitates and provides travel agents and tour operators a free air-fare to join the international exhibitions. The State is also trying to enter Russian market to pull tourists, however direct flights remain the question. Practical Implications Today, tourism is one of the largest industries in the world and is continuously expanding. One of the factors that have enabled the tourism industry to spread worldwide is the process of globalization. Over the last decade, globalization has lead to increased competition and a need for cooperation. To be able to survive, companies and organizations within the tourism industry have to establish networks and cooperate (Fyall & Garrod, 2005). Tourism destinations are probably one of the most difficult “products” to market, involving large numbers of stakeholders and a brand image over which a destination marketing manager typically has very little control. The diversity and complexity of tourism destinations is well documented and this makes brand development very difficult for national, regional and local tourism organizations. Destination branding necessarily involves the focused attention of all tourism-related organizations in a destination, and this can create major challenges in getting all stakeholders to develop a coherent theme for the destination brand. North Cyprus currently generates a significant tourism per capita income. However, there lies the possibility of great losses unless the changes and developments are not carefully monitored and analyzed in the macro environment. If North Cyprus’s forte of gambling, sex and education tourism types is interfered, then other factors should be vitalized and supported 12 by infrastructure investments. These factors are rare resources that North Cyprus possesses and most other Mediterranean countries do not. If and when the following resources are utilized and invested, they will become significant and steady tourism income sources for North Cyprus: 1. An environment that is almost free of all types of pollution 2. Vast flat lands 3. A large historical and cultural accumulation in a small geography 4. Unspoiled local culture and production methods 5. Long summer season, generous beaches, coves and winds 6. Educated locals Only those destinations that have a clear market position and appealing attractions will remain at the top of consumer minds when they book their holidays. In the highly competitive and dynamic global tourism environment, there is a need to develop a clear identity, or “brand” based on reality, while also reflecting the core strengths and “personality” of its product. In this crowded marketplace, building and maintaining brand value is the key to business success and, as a result, brand management is quickly shifting from a peripheral marketing concern to the core business strategy. Practical recommendations can be given to industry practitioners and official authorities in a sense that the resources in North Cyprus can turn into valuable tourism products by targeting the right markets with a good mixture of product, price and marketing communications such as: • Golf courses, country clubs and luxury summer residents: Targeting Middle East and some European countries, that type of investments should attract international finance and know-how. They may present an opportunity to become a prestigious tourism haven and they do not pose a threat to the environment. • Modern marinas, yachting clubs and facilities: Developing attractive marinas and surrounding facilities can put North Cyprus on the map as a favorite spot for yachters especially when convenient connections are made to the Country Clubs, and other touristy areas. • Luxury senior citizen care centers in combination with health facilities: As the health tourism gains momentum, it starts to generate large revenues for the countries with good health services and facilities. There is also a migration trend for retired people from expensive European countries to low pace, friendly climate areas of the 13 world. Creating excellent senior care facilities supported with excellent health facilities would attract many elderly with financial powers to North Cyprus. • Facilities for international water sports and facilities for athletes and teams who seek for milder climates in winter time: That type of facilities can play a major role in country promotion when there are recognizable event organizations. They continue the flow of funds in slow seasons. Developing facilities for sports such as soccer, rugby, hokey fields and water ski. Wind surfing, jet ski areas will undoubtedly contribute the vision and enthusiasm of the athletic youth of North Cyprus. • Facilities for ecotourism: Promoting ecotourism is crucial in the process of attracting environmentally conscious and high income level tourists. The facilities that support ecotourism must be designed with environment in mind. • Tours and accommodations for well organized historical sites and religious places: North Cyprus possesses a wealth of cultural and historical accumulation that can be considered a world treasure. However, those riches are far from being well kept and displayed properly. Cleaning, restoring and landscaping the sites will provide a valuable tourism product to North Cyprus. Besides, it would trigger the flow of funds and international interest for land and underwater archeology. • Trekking, mountain bike and horseback riding courses, adventure travel organizations and local handcrafting training: Without harming the nature, various activities can be conducted to benefit both the tourists and corporate training needs. • Aero-sports centers and regulations: Sky diving, wing gliding, ultra light and small plane riders should be able to enjoy the long season and surroundings. New airports would also make the transportation more convenient to and from the island. The number of above examples should be increased. However, there is a need for a National Marketing Plan for North Cyprus. Target market analysis, setting of marketing objective, product mix, pricing decisions and an effective marketing communications mix must be created in short term in order to utilize the strengths of North Cyprus. If it is achieved properly, it would not be difficult for North Cyprus to catch or even surpass the South Cyprus’ per capita tourism income. A Destination Marketing Organization (DMO) should be established in North Cyprus to serve and achieve these objectives. Currently no NGO is serving this objective. Other than the marketing plan, North Cyprus also needs a master plan for urban areas and for the above mentioned areas and sites. Master planning 14 must be done by professionals who are outside the political circles. Only then it can be ensured that the richness of the country will survive and transfer to the next generations. Setting the environmental and urban standards and regulations will complete the planning. North Cyprus will earn positive image and take a big step toward being a prestigious tourism brand. Putting marketing thought first also requires qualified human power. Imbedding tourism principals and fundamentals into the North Cyprus education system would be a desirable strategic act. Conclusions Destination marketing is an integral part of developing and retaining a particular location’s popularity. Too often, however, tourism planners focus only on destination developments without paying attention to retaining and preserving the attributes that attracted travelers to the destination in the first place (Kotler, Bowen & Makens, 2010). Tourism destinations are probably one of the most difficult “products” to market, involving large numbers of stakeholders and a brand image over which a destination marketing manager typically has very little control. The diversity and complexity of tourism destinations is well documented and this makes brand development very difficult for national, regional and local tourism organizations. Destination branding necessarily involves the focused attention of all tourismrelated organizations in a destination, and this can create major challenges in getting all stakeholders to develop a coherent theme for the destination brand. Likewise, it is not easy for small island nations like the North Cyprus to reach the elusive tourist. Limited marketing budgets, a wide array of competitors and an increasingly experienced and ‘picky’ tourist make it difficult to create and sustain a profitable industry. Even if the nation is successful in catching the attention of the tourist, the challenge that remains for the provider is that of increasing the economic spend and yield associated with the industry. Tourist behavior and attitudes are shaped by marketing campaigns, branding and the almost osmotic process of receiving information from the media and broader world around us. McKercher and Chan (2005) emphasized that it is more important to understanding why people visit a destination? At the end of the day, marketing is about achieving goals through understanding and responding to customers’ needs (Clarke, 2005). The fact that the local tourist authorities in North Cyprus have not carried out any qualitative marketing research raises questions about the appropriateness and effectiveness of their promotion campaigns and their new product development plans. 15 The current study has highlighted the impact that how politics can influence marketing and overall destination competitiveness for an island state. To overcome the challenge, it is necessary for North Cyprus to strongly establish partnerships between the public and private sector, taking more advantage of new technologies and the internet, and marketing must lead to the optimization of tourism impacts and the achievement of their strategic objectives for all stakeholders. On international level it is vital for the tourism industry of North Cyprus the country to establish direct flight routes with the main tourist generating countries as this will positively influence the accessibility of the destination and, therefore, the arrivals figures. However, it is most likely that the political leaders of South Cyprus would consider such direct flights as a signal for the international recognition of North Cyprus and would oppose such developments. In this light a more heretic idea can be raised – instead of both political entities on the island to market their own part of it, they could unite their efforts and market the island as a single destination. This would contribute not only to the steady growth of tourism on both sides of the border, but would be a step further to the political solution of the “Cyprus question”. In this way, tourism would also practically prove that it is a viable tool to achieve peace. Discussion questions: 1. What kind of problems Island of Cyprus have? What kind of role these problems play on marking of North Cyprus? 2. How would tourism industry of North Cyprus change if the island were politically united? What would be the impact on tourist arrivals and expenditures? 3. Considering the information given about the current situation of North Cyprus, what can the tourism official do to better market North Cyprus as a tourist destination? References Altinay, L., Altinay, M. & Bicak, H.A. (2002), “Political Scenarios: The Future of the North Cyprus Tourism Industry”, International Journal of Contemporary Hospitality Management, 17(3), 272-280. Altinay, M. & Hussain, K. (2005), “Sustainable Tourism Development: A Case Study of North Cyprus”, International Journal of Contemporary Hospitality Management, 14(4), 176-182. Altinay, M. (1994), Kucuk Ada Ulke Ekonomilerinde Turizm. Famagusta, Northern Cyprus: Eastern Mediterranean University Press. 16 Buhalis, D. 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