Audit reveals gaps in ferry service management
The Auditor General’s Office has released a report on the Cyprus-Greece ferry service, noting that average occupancy from 2022–2025 was just 49% despite strong public interest. The audit reviewed ticket availability, occupancy data, state subsidies, and contract execution by the Deputy Ministry of Shipping.
Occupancy versus ticket demand
According to the report, the ferry operated by Scandro Holding Ltd had a maximum capacity of 350 passengers per trip, but the average number of passengers over the four-year period was 173 per trip. While ticket demand sometimes led to platforms showing sold-out journeys, audits revealed that actual occupancy averaged only 69% in certain cases, with an average of 107 unutilised seats. Vehicle bookings also showed significant discrepancies, with actual occupancy at just 18% despite system reports of zero availability.
Systemic flaws in reservations and cancellations
The report cites issues with the booking system that allow “absolute distortion” in availability, such as single passengers occupying multi-person cabins at lower rates. Additionally, ticket cancellation policies are applied more flexibly than publicly stated, permitting full refunds at any time, which encourages early overbooking and last-minute cancellations. The Deputy Ministry does not consistently monitor cancellations or no-shows, limiting oversight of revenue and reissued tickets.
Pricing and subsidy concerns
Ticket prices are low, regardless of seasonal demand, resulting in a government subsidy covering approximately 93% of costs. Performance indicators tied to occupancy were set unrealistically low (40–60 passengers per trip), causing almost automatic contract extensions without incentivising the operator to increase passenger numbers or improve service quality.
Recommendations for improvement
The Auditor General emphasises the need to strengthen monitoring and control mechanisms by the Deputy Ministry of Shipping to ensure proper verification of financial and operational data. The report calls for a reassessment of the current contract and implementation of measures to improve service efficiency, passenger satisfaction, and public value. The ferry connection should operate not just as a subsidised service but as a reliable and high-quality public transport option, contributing to tourism growth and the broader economy.
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