Hotels and restaurants account for almost 10% of Cyprus employment

The hotel and restaurant sector accounts for almost 10% of the workforce, according to the annual Hotels and Restaurants Statistics report published by the Statistical Service Cystat for the year 2006.

Employment in restaurants and hotels increased by 5.9% in 2006 and reached 35,955 persons, or 9.4% of the total economically active population and 10.0% of the total gainfully employed population.

The report provides data on the number of establishments, employment, labour costs and other expenses, gross output, value added and data for the expenditure on fixed assets.

During 2006, value added of the sector rose in real terms by 2.7%, after growth of 1.6% in 2005.

Cystat said this was a result of the increase in income from tourism, owing ue to the increase of expenditure per person.

At current market prices, value added in 2006 increased by 5.1% to CYP 538.1 mln (EUR 919.4) mln compared with CYP 512.0 (EUR 874.8) mln in 2005.

Gross output increased by 7.6% to CYP 961.9 (EUR 1,643.4) mln from CYP 894.2 (1.527.9) mln in 2005.

However, the contribution of the sector to GDP declined in 2006 to 7.1% from 7.3% in 2005.

 

Hotels account for almost 40%

 

Of the total value added 39.2% was generated through the activity of hotels, 10.9% by hotel apartments, 23.0% by restaurants and taverns, 7.3% by cafeterias and coffee shops, 4.3% by night clubs and cabarets, 4.1% by fastfood outlets and take away restaurants and 11.2% by other eating and drinking places.

Gross fixed capital formation in 2006 increased by 5.1% to CYP 55.5 (EUR 94.9) mln from CYP 52.8 (EUR 90.3) mln in 2005.

Investment in new buildings (hotels, hotel apartments, restaurants etc.) accounted for CYP 29.6 (EUR 50.6) mln , in machinery and equipment CYP 12.5 (EUR 21.4) mln, in furniture and fixtures CYP 12.6 (EUR 21.5) mln and in transport equipment CYP 0.8 (EUR 1.4) mln.