Green Line shopping accelerates in 2008

Shopping across the Green Line accelerated in both directions in 2008, according to the latest data from the card payment organisation, JCC Payment Systems Ltd.
Greek Cypriots increased their spending in the north by 14.3%, with “use of local credit cards in occupied areas and Turkey” rising to EUR 7.4 mln compared with EUR 6.4 mln in 2007.
Spending in Turkey itself is likely to be minimal, given the small amount of tourists travelling to Turkey relative to the number of Greek Cypriots crossing the Green Line.
The data show that Greek Cypriots spend most of their money on entertainment (presumably casinos) and hotels.
However, they seem to have cut back on casino spending in 2008, as entertainment saw a fall of 10.2% to EUR 4.3 mln, compared with EUR 4.8 mln in 2007, whereas spending in hotels almost doubled.
Clothing and retail are also popular targets for Greek Cypriot shoppers.
Moto (mail order and telephone order) has proved popular, increasing almost twofold to EUR 321,254. 

Turkish Cypriot spending up 25%
Meanwhile, Turkish Cypriot spending rose by 25% to EUR 19.9 mln, compared with EUR 15.9 mln in 2007.
The biggest item was supermarkets, at EUR 4.7 mln, followed closely by clothing, at EUR 3.9 mln, other retailers (EUR 3 mln) and DIY stores (2.8 mln).
Card spending in DIY and household stores rose by 52.1% to EUR 2.8 mln.
The only notable decline was in food and drink. Perhaps Turkish Cypriots are going back to their own tavernas, having tried out the restaurants in the south.
Or perhaps, with hotel and restaurant prices rising by 7.7% in 2008 according to consumer price data, they have responded to increasing prices by keeping to the north, whose restaurants are cheaper in all but the most touristy spots.

Green Line trade also booms
Separately, new data from the Turkish Cypriots Chamber of Commerce show that total sales of goods across the Green Line from north to south reached EUR 6.8 mln in 2008, compared with EUR 4.1 mln in 2007, marking a rise of 64%.

Fiona Mullen
www.sapientaeconomics.com