Cyprus Business Now

Cyprus Business Now

Tourism revenue in Cyprus saw a modest rise of 5.5 per cent in the first quarter of 2024, compared to the same period in 2023, while April remained essentially the same, according to a report released on Monday by the Cyprus Statistical Service (Cystat).

According to the report, which is based on the Cyprus Statistical Service’s travellers survey, tourism revenue for April 2024 was reported to have reached €217.4 million, a slight decrease of just 0.1 per cent compared to April last year, which saw a revenue of €217.6 million.

From January to April 2024, tourism revenue totalled €440.7 million, marking an increase from €417.6 million in the corresponding period of the previous year.

April 2024 also witnessed a notable rise in tourist expenditure per capita, climbing by 2.6 per cent to €651.69, up from €634.89 in April 2023.

The Cyprus government saw its surplus climbing to 1.9 per cent of the country’s Gross Domestic Product (GDP) between January and May 2024, up from 1.1 per cent in the same period last year, according to a report by the state’s statistical service.

This increase, detailed in the preliminary fiscal results released on Monday, translates to a surplus of €590.6 million, marking a significant rise from €322.7 million previously.

Despite a rise in expenditures, fiscal stability was successfully maintained, bolstered by a substantial uptick in revenues, primarily from taxes and social contributions.

Breaking down the revenue components, total revenues surged by 14.9 per cent, amassing an additional €700.8m to reach €5.39 billion.

This is an increase from the €4.69bn recorded over the same timeframe in 2023.

The House is expected to discuss legislation concerning the establishment and operation of collective investment organisations in September, following the end of the summer recess, according to statements made on Monday.

The draft law aims to establish an additional tier of services for managing collective investments through the operation of Collective Investment Organisations (Fund managers), complementing the existing level of collective investment funds.

This aims to enhance sector specialisation, improving services for capital managers and investors alike.

Discussions began last April, with several stakeholders expressing reservations about specific provisions, despite their overall support for the draft.

“We need to strike a balance; we must move ahead with this legislation as it enhances our competitiveness as an economy,” stated Christiana Erotokritou, chair of the House Finance Committee, which convened on Monday.

“We say that we want to become a financial hub, so we must have a framework of laws while simultaneously protecting our country’s transparency and credibility,” she added.

Cyprus saw a 20.1 per cent increase in tourist arrivals during 2023, reaching 3,845,652 compared to 3,201,080 in 2022, with over one-third of visitors staying in Paphos, according to a report by the state’s statistical service.

Another key highlight of the report was that Cyprus’ tourism revenue rose by 22.6 per cent, totalling €2.99 billion.

In more detail, the report revealed that total traveller arrivals reached 6,107,725 in 2023, marking a 26.4 per cent increase from 2022, while trips abroad by Cypriot residents increased by 33.4 per cent, reaching 1,680,345.

The United Kingdom was the primary source of tourism for Cyprus in 2023, accounting for 33.9 per cent of total arrivals, followed by Israel (10.7 per cent), Poland (7.1 per cent), Germany (5.5 per cent), Greece (4.9 per cent), Sweden (3.8 per cent), and both Romania and France (2.1 per cent each).

The average gross monthly earnings of employees in Cyprus saw a 5.7 per cent increase during the first quarter of 2024, reaching €2,378 compared to €2,251 in the same period of 2023, according to a report from the Cyprus Statistical Service (Cystat).

Furthermore, the seasonally adjusted average gross earnings for the first quarter of 2024 are estimated at €2,424, marking a 1.5 per cent rise from the fourth quarter of 2023.

The statistical service reported that the average gross monthly earnings for men in the first quarter of 2024 were estimated at €2,564, while for women, they were €2,145.

Compared to the first quarter of 2023, the average monthly earnings for men and women increased by 6.0 per cent and 5.1 per cent, respectively.

Preliminary data revealed the distribution of gross monthly earnings among employees in the first two months of 2024.

Cyprus’ Industrial Producer Prices Index experienced a 2.5 per cent decrease in May 2024 compared to the same month in 2023, according to a report by the state’s statistical service.

For the period from January to May 2024, the index saw a reduction of 3.2 per cent compared to the corresponding period last year.

In May 2024, the Industrial Producer Prices Index reached 122.4 points (base 2021=100), showing an increase of 0.5 per cent compared to April 2024.

Moreover, according to the statistical service, the index remained stable in the manufacturing sector in May 2024 compared to April 2024.

The top ten most expensive property sales in Cyprus exceeded €39 million in May of this year, with Limassol continuing to dominate the high end of the market, according to a report compiled by real estate analytics firm Ask Wire.

It is indicative that the priciest real estate transaction, valued at €17.65 million, was recorded in Limassol for a single commercial development.

Moreover, Limassol emerged as the leading district with five transactions among the top ten sales, followed by Paphos and Nicosia with two each, and Larnaca with one.

These transactions totalled €25.8 million in Limassol, €7.5 million in Paphos, €4.6 million in Nicosia, and €1.3 million in Larnaca.

Ask Wire CEO Paulos Loizou noted that “Limassol demonstrates its dominance in high-value property sales, highlighting its enduring market strength”.

“Moreover, May saw an increase in high-value property transactions across all regions of free Cyprus compared to April,” he stated.

The Cyprus Stock Exchange (CSE) ended Monday, July 1 with losses.

The general Cyprus Stock Market Index was at 160.91 points at 12:17 during the day, reflecting a decrease of 0.04 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 97.88 points, representing a drop of 0.04 per cent.

The total value of transactions came up to €122,841, until the aforementioned time during trading.

In terms of the sub-indexes, the main index fell by 0.02 per cent. The alternative and investment firm indexes rose by 0.12 per cent and 1.33 per cent respectively. The hotel index remained stable.

The biggest investment interest was attracted by the Bank of Cyprus (no change), Hellenic Bank (-1.14 per cent), Demetra (+1.36 per cent), Mitsides (-2.31 per cent), and Lordos United Plastic (no change).

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