Cyprus sees first rise in tourism revenue for years

Cyprus enjoyed its first increase in tourism revenue for many years in 2005, with revenue reaching CYP 1,005.7 mln, or just over CYP 1 bln, compared with CYP 982 mln in 2004, according to Statistical Service data.

However, the increase on the year earlier was only a meagre 2.4%, compared with a 5.2% increase in arrivals, meaning that spending per head is down.

Moreover, the rise in tourist arrivals was far below the nominal rise in GDP, of around 6% according to Financial Mirror estimates.

Revenue therefore fell as a proportion of GDP for at least the fifth year in a row, from 20.8% of GDP in 2001 to an estimated 13% of GDP in 2005.

According to preliminary research by the Central Bank, at least some of the fall in tourism revenue from regular tourists may be being offset by spending by non-residents who own holiday homes.

Fiona Mullen