Cyprus tourism to reach record low this summer
Tuesday, June 23, 2009

Cyprus's tourism industry is bracing itself for the worst summer season on record as the global financial crisis hits the pockets of tourists, edging Cyprus closer to a recession.

With tourism arrivals to the eastern Mediterranean island down 8.9 percent by May, authorities have clamoured to reverse forecasts of a massive 20 percent drop in arrivals during the holiday island's high season.

Locals worry that British tourists - over half of total arrivals to Cyprus - will holiday elsewhere this year, after a survey in April found Cyprus was the fourth least 'value for money' destination due to sterling's weakness against the euro.

'A drop in tourism this year is one of the reasons why we will see very low GDP growth,' said Michalis Florentiades, head of economic analysis and research at Hellenic Bank.

Official data showed that tourism revenue for 2008 represented 11 percent of the island's GDP, from 2.4 million arrivals.

This month, Cyprus's central bank forecast 0.4 percent growth in the island's economy for 2009. The Finance Ministry sees 1.0 percent growth, down from 3.7 percent in 2008.

'I estimate that Cyprus will not go into a recession, but it will get very close,' said Stelios Platis, an independent economist.

The island, a euro zone member since Jan. 2008, is the only country among its peers to expect growth this year.

Hoteliers in Cyprus believe that this year's experience has prepared them for the worst.

'We need to turn this crisis into an opportunity and spend time improving and rebranding our tourism product,' said Harris Loizides, president of Cyprus Hoteliers Association.

The government introduced a 51 million euro support package in tax breaks and visa waivers to support the tourism sector
but tourism officials say this has come too late. 'The measures came late, but they are paying off,' said Loizides.

However, UN World Tourism Organisation data showed that popular destinations such as Malta and Croatia have seen their arrival numbers plummet between 18 and 20 percent.

Meanwhile, analysts are optimistic that last minute bookings will curb the drop in arrivals.

'People have cried wolf too many times in the past about tourism, which does have a tendency to improve at the last minute,' said Hellenic Bank's Florentiades.

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Thirsty Cyprus looks to golf to rescue tourism
Tuesday, March 17, 2009

Cyprus turns into near desert in the summer and is counting on desalination to provide green fairways for golfers and save the country's troubled tourism industry.

But environmentalists fear the impact of building a dozen more desalination plants to enable the number of golf courses on the island to multiply from three to 17.

To cope with serious drought - which saw Cyprus reservoirs dry up this year - the eastern Mediterranean island is one of the main producers of desalinated water in Europe alongside Italy and Spain.

"The golf courses project is out of order! The aim is not to serve Cypriot tourism but business development and developers," protested Costas Papastavros, an agriculture and natural resources ministry official.

"And in order to serve this development we need a hell of a lot of extra water, and the energy," he said at a climate change conference in Nicosia.

The government says "there will be a desalination plant for each golf course and that they will request renewable sources of energy. But there is a gap between the theory and the practice," said Papastavros.

He calculated that about 30 million cubic metres (one billion cubic feet) of water will be needed for the golf courses, compared to the population's annual needs of 85 million cubic metres (almost three billion cubic feet) of drinking water.

For the past year, with reservoirs turned into parched dirt bowls during the summer by low rainfall, water to households has been rationed, with the mains supply running only three half-days a week.

But the left-wing government of President Demetris Christofias is pressing ahead with the golf courses rescue plan which was initiated by the previous administration, and the cabinet voted to pass the project in December.

Cyprus counts on revenues from its tourism sector, under threat from the global economic crisis, for 15 percent of its gross domestic product.

The global credit squeeze in recession-hit Europe is blamed for the slump in the local tourism market, with arrivals down 14.2 percent for the first two months of 2009.

"Bookings for 2009 are coming in slowly and there is a decrease in numbers compared to the same period last year," said Tourism Minister Antonis Paschalides, adding that 2008 was also a difficult year for Cyprus.

Hotel bookings are said to be around 25 percent down for this summer, with the government expecting an overall 10 percent drop in arrivals by the end of the year.

Paschalides said golf courses would allow Cyprus to win new markets and to extend the tourism season from the traditional summertime of sun, sea and sand.

"The water quantity needed for the irrigation of the golf courses will be produced by desalination units which will be working with renewable sources of energy," he said.

"With this decision the water balance in Cyprus will not be disturbed while simultaneously the use of renewable sources will increase."

Environmentalists are not convinced that such an expansion will not require fuel-fired energy generation and the emission of carbon dioxide which drives global warming.

"We are strongly opposed to this project," said Christos Theodorou, who heads the Federation of Environment and Ecological Organisations in Cyprus.

"Our main reason is the environmental cost which is unavoidable regarding the energy to produce water through desalination plants, the changes to wildlife, the use of chemical fertilisation, and pollution of undersoil."

Moreover, "every golf course is not limited in term of area, which means that they will be surrounded by luxurious villas and other infrastructure such as restaurants, hotels and swimming pools," he said.

Theodorou said the technology for the use of renewable energy was not advanced enough to keep up with such growth, while environmental awareness among the population was also off the pace in international terms.

"In Cyprus, we don't give much attention to environmental issues," said Papastavros. "Politicians are under pressure from rich people who want this kind of development. The main issue here is ... (building) apartments."

The government has approved more than 350 million euros (440 million dollars) in stimulus measures to stave off job losses in the key tourism and construction sectors which contribute a combined 30 percent of GDP.

Due to concerns that the global financial crisis will trigger lower tourism revenues the finance ministry revised its GDP growth forecast downwards to 3.7 percent for 2008, and a slower 2.1 percent for this year.

The European Commission estimates Cyprus' growth will be closer to one percent.

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Posted by Co-op Travel 9:33 AM 0 comments    

A new "Las Vegas" in Cyprus
Thursday, January 29, 2009

Sixteen five-star hotels, a shopping center and marinas are amongst the projects to be completed by 2010 in Cyprus may result in turning the Magosa-Karpaz desert resembling Las Vegas.

There is practically no sector that remains unaffected by the global economic crisis. The construction sector, which had gained acceleration prior to the crisis, is especially experiencing a decrease in activity. Even, TOKI, the government's official construction company has put certain investments on the shelf for now. However, despite all of the current negative conditions there are certain investments that are still ongoing at full speed. In the Magosa-Karpaz region in Cyprus, investments including the development of hotels and a shopping center are amongst the projects that are still continuing on despite the worldwide crisis.

CONCEPT HOTELS ARE BEING BUILT

With the collaboration of the Northern Cyprus government and the private sector, a version of Las Vegas is being established in the region. The project is being referred to as a new 'Las Vegas' due to the fact that 16 five-star concept hotels are being built in Northern Cyprus. The projects include hotels that will resemble Italy's coliseum, Babel's Gardens, Artemis' temple and Noah's Ark. Within the scope of the project a 52,000 guest capacity will be available, when all of the new hotels are completed. The Karpaz Bay Resort will also include a marina with a 350-yacht capacity, which is anticipated to be completed in two years.

THE BIGGEST SHOPPING CENTER IN CYPRUS

In addition to the variety of tourism investments, the Big Old Bazaar is a shopping Center project which is aimed to resemble the Grand Bazaar. The Big Old Bazaar will encompass a 45 thousand meter square region, 18,000 of which will be enclosed. Forty-percent of the project's 850 units and 360 stores have already been sold. Giant brands such as Adidas, Nike, and Koton as well as all of Cyrus's national banks and certain Turkish national banks have already secured their spots in the center. Stores, with an 18-meter squared capacity are being sold at starting prices of 19,900Pounds Sterling. The price of the biggest store in the center, at 45 squared meters is priced at 67,000 Pounds Sterling. Store prices are anticipated to double when the project is completed.

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Exploring the ski secrets of Cyprus
Friday, November 28, 2008

When you think of Cyprus, the image that will probably spring to mind will be of a sun-kissed island destination in the Mediterranean - famous for summer holidays, a beautifully relaxed pace of life, excellent cuisine and welcoming people.

This image is of course accurate and it covers many of the reasons why people choose to holiday in Cyprus, invest on the island and even relocate to live in Cyprus. But this image doesn't tell you everything about the destination - because Cyprus is an island for all seasons. Not just a picturesque place in the summer, but an island with an emerging winter sports scene, where you really can ski in the morning for up to four months of the year, and then head to the coast and swim in the sea in the afternoon.

The appeal of Cyprus as a ski destination is gradually growing as the offerings available at the Troodos Village ski area improve, and as word spreads about the charming features of the island's winter sports destination. The appeal is also growing as the annual Federation Internationale de Ski giant slalom and slalom competitions that take place in the Troodos, gain wider recognition and also importance on their annual ski events calendar. In 2009 the competition will take place in early March, and for those who want to practice, the ski season in Cyprus runs from late December to early April.

The ski slopes in Cyprus are located around Troodos Village, also known as the Troodos Skiing Resort, it's situated on a col between Mount Olympus and one of the other peaks of the range. There are hotels in and around the village, some excellent restaurants and generally speaking, the facilities available to skiers are improving. There are a total of four main slopes that appeal to all levels of skier, and it's possible to hire ski and even snowboard equipment onsite, or buy it from a limited number of sports shops in Limassol and Nicosia.

The cost of a days ski pass or even an hours private tuition is incredibly cheap by international ski standards, and the affordability of the resort as well as its striking Alpine charm is just another reason to choose the Troodos Village ski resort in Cyprus.

Because Cyprus is such a fascinating island, most people combine skiing in Cyprus with sunbathing, swimming and sightseeing too. In the Troodos Mountains alone there are literally hundreds of sights to witness - from rare flora and fauna to stunning views, from ancient monasteries to the Cedar Valley - and across the whole of the island you really are spoilt for choice when it comes to thinking of things to do!

According to Martin Pearce, Sales Manager at Aristo Developers, leading real estate developers and property experts in Cyprus: "the fact that Cyprus offers its visitors such a wealth of entertainment options all year round means that it is of maximum appeal to those who seek so-called jet-to-let property investments; i.e., overseas investment properties located in destinations where there is strong rental demand for up to 12 months of the year."

"What's more, Cyprus has a very strong reputation as a favourite choice with those seeking a second home or holiday property. This is quite simply because use and enjoyment of such a property is not limited to a brief summer season period. Therefore, whatever your reasons for buying property abroad, chances are, Cyprus is a destination worthy of your closer inspection."

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Posted by Co-op Travel 3:48 PM 0 comments    

Paphos airport is ready to open
Wednesday, October 15, 2008

The new Paphos International Airport in Cyprus, designed by Pascall & Watson Architects with Canadian designer Stantec, has been completed for Hermes Airports.

The 18,500sq m passenger terminal will serve 2.7 million passengers a year and includes retail and relaxation areas, VIP accommodation and parking facilities.

The project is part of a 25 year Build-Operate-Transfer (BOT) contract with French firm Bouygues Batiment International as the design and build contractor, to upgrade air travel in Cyprus.

A second airport at Lanarca, which will handle 7.5 million passengers, will open in November 2009.

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Posted by Co-op Travel 3:04 PM 0 comments    

Fewer than half of Cyprus’s tourists stay in hotels

Fewer than half of Cyprus's tourists stay in hotels, according to data released by the Statistical Service, while around one-sixth stay with relatives and friends.
Between January and August 2008, on average 48.6% of tourists stayed in 1- to 5-star hotels, while 17.9% stayed in "hotel apartments or tourist villages".
According to the data, 5.6% stayed in "owned residence" and 11.2% stayed in "other", unnamed accommodation.

Paphos regions hosts over one-third.

The Paphos region - Paphos and Polis - was host to 35.6% of tourists in the first eight months of 2008, which implies that this region alone attracts 860,000 tourists each year.
Paralimni and Ayia Napa in the east together hosted 26.6% of tourists in January-August. Limassol attracted 14.5% of visitors, Larnaca 10.2% and the inland capital, Nicosia, only 7.7%.
Cyprus's potential for tourism in the picturesque Troodos mountains evidently remains underdeveloped, with the "other" category attracting only 5.3% of visitors.

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Posted by Co-op Travel 2:20 PM 1 comments    

Population of Cyprus nears 800,000
Tuesday, October 07, 2008

The population of the Republic of Cyprus is around 789.300 according to a new report out today.

At the end of 2007, the population had recorded an increase of 1,4% on the previous year.

According to the report by Cyprus Statistical Service (CyStat), the population in the district of Nicosia was 310.900 at the end of 2007, in Famagusta 43.700, in Larnaca 131.900, in Limassol 226.700 and in Paphos 76.100.

69.9% of the population resided in the urban areas of Cyprus, while 30.1% resided in rural areas.

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Posted by Co-op Travel 11:30 AM 1 comments