Cyprus Economy Feels The Blues
We’ve seen an excellent article by Tom Aspell, NBC News Correspondent.
Here’s an extract:
The credit crunch, coupled with the high cost of tourist services, is suddenly making Cyprus much more expensive. British tour operators have warned Cyprus that unless it slashes its costs, they will encourage customers to go to Turkey or other cheaper holiday spots around the Mediterranean.
It was a wakeup call to the Cyprus tourist industry. At least $50 million of the latest cash injection will be aimed at attracting more foreign visitors. Hoteliers will slash their value-added tax from 8 percent to 5 percent, and the government will waive airport surcharges, enabling airlines flying to Cyprus to cut their ticket prices. There will also be reductions in utilities bills and municipal taxes for hotels. It’s hoped that will enable tour operators to offer cheaper packages.
Farah Shammas of the San Rafael Hotel in Limmassol welcomed the changes.
“It’s definitely been a positive move on the part of the government,” Shammas said. “Tourism is a vital part of the Cypriot economy, and it’s nice that the government is recognizing this. We’re doing our best, but we are facing stiff competition from other Mediterranean countries who give generous tax breaks to their hotels. Last year was really difficult for hotels in Cyprus, but this year now looks a little better. It’s a nice gesture.”
To read more of Tom Aspell’s blog and this story click here
