Assetz® News - Tourism revenue soars in Cyprus

Tourism revenue soars in Cyprus

2nd June 2006 |

The tourism industry in Cyprus is again proving lucrative this year despite the fact that the number of visitors to the Mediterranean island has fallen.

It has been reported by the Financial Mirror that revenue from tourism increased by a staggering 20.2 per cent year-on-year in the month of April, accompanied by a 12.5 per cent rise in the number of arrivals.

Revenue has now increased faster than the number of arrivals in each of the last six months, which suggests that interest from holidaymakers is slightly static although those who do visit the island are finding cause to spend a great deal of money.

In the first four months of 2006, total revenue was actually up by 2.6 per cent year-on-year, although the number of arrivals is thought to have slumped by 3.9 per cent.

Cyprus has always been particularly popular with Brits and this has also made the country attractive to those interested in property investment. Retirees often choose Cyprus as a viable alternative to the likes of France and Spain and it is often noted that Brits find it extremely easy to integrate with the Cypriot way of life.

In February this year, the International Monetary Fund (IMF) suggested that Cyprus would be using the euro by April 2008 and experts tend to agree that this could hugely benefit property investors in the country.

The Associated Press reports that adopting the euro is now taking centre stage in political discussion in Cyprus, with president Tassos Papadopoulos highlighting it as his chief ambition.

"Our second biggest European target (after achieving EU membership) and the main priority is Cyprus' acceptance into the eurozone and introduction of the euro as Cyprus' national currency," he said.

It is reported that the Cypriot pound will be locked at a fixed exchange rate against the euro next year in preparation and many of those looking to get involved in property investment will be delighted with this news.

Economists often point out that one of the greatest advantages of a single currency is that trading with other monetary union members becomes much more transparent. It is a condition that basically encourages higher levels of activity, with transactions no longer riskily-dependent on exchange rate fluctuations.

A number of areas in Cyprus have proved particularly popular with British property buyers in recent years, with some just looking to retire there and others looking to bring in rental income.

The harbour town of Paphos is one of the most notable examples, not least because it has made it onto the official Unesco list of the world's cultural and natural treasures.

Situated on the west of the island, it has seen strong house price increases in recent years and is extremely popular with residents and holidaymakers thanks to stunning sandy beaches and rocky coves.

As reported by the Cyprus Mail recently, 49 Cyprus beaches in all were approved for a Blue Flag by the European beach regulator. The Blue Flag award is particularly concerned with clean bathing water and this is a quality that has long been associated with Cyprus. Part of the reason for the sustained popularity of property in Paphos is that 11 of these Blue Flag beaches are situated in the district, meaning that it is exceptionally vibrant in the summer months.