Financial crisis takes its toll on hotels in Cyprus

Data just released for the hotels and restaurants sector in 2009 underline how the global financial crisis took its toll on the sector in Cyprus.
Value added fell in real (constant-price) terms by 7.3% in 2009, having already dropped by 3.4% in 2008.
At current market prices, value added in 2009 decreased by 6.2% to EUR 961.7 mln, from EUR 1,025.7 mln in 2008.
The sector’s contribution to gross value added decreased to 6.3% from 6.7% in 2008.
Gross output, ie not just value-added, decreased by 4.3% and reached EUR 1,855.4 mln from EUR 1,939.2 mln in 2008.
Of the total value added, 45.0% was generated by hotels and hotel apartments, 36.4% by restaurants and mobile food service activities, 14.7% by cafeterias, coffee shops, bars, pubs and night clubs, 2.0% by event catering and other food service activities and 1.9% by other short-stay accommodation, camping sites etc.
Not surprisingly, employment in hotels and restaurants decreased by 1.7% in 2009 compared with the previous year and reached 38,481 persons, accounting for 8.5% of the total economically active population and 9.3% of total gainfully employed population.
Gross fixed capital formation in 2009 increased by 16.4% and reached EUR 149.4 mln. Investment in buildings (hotels, hotel apartments, restaurants etc.) accounted for EUR 95.7 mln, machinery and equipment EUR 22.2 mln, furniture and fixtures EUR 29.8 mln and transport equipment EUR 1.7 mln.