This research aims to evaluate the diversification strategy of the Cyprus coastal tourism product by investigating the degree of success of the strategy in fulfilling its goals of economic improvement, tourist satisfaction increase and image enhancement. The evaluation of the strategy’s success is performed through an examination of statistics whereby tourism revenue, tourist arrivals, seasonality and the competitive position of the Cyprus tourism product are assessed through secondary research. Primary research is performed to explore the degree of destination image enhancement and tourist satisfaction improvement. In particular, a comparison of the projected and the perceived image of the destination is performed to explore any similarities and/or dissimilarities whereas the satisfaction of tourists is measured across several destination attributes. In tourism studies the diversification concept has not been extensively examined as little attention has been given to the repositioning strategy of coastal resorts. Hence, the conditions under which the application of the strategy becomes imperative are examined to increase the understanding of tourism product diversification. The research focuses on Cyprus which was selected as a case study for the following reasons: a) it is a popular Mediterranean ‘sea and sun’ destination and b) it has been trying to reposition itself through diversification of its tourism product
