ECONOMY: Cyprus generates best ever income from tourism

Cyprus notched up its best ever revenue from tourism in 2018 with receipts recording an annual high of 2.7 billion euros, official data showed Friday. 

Revenue from tourism rose 2.7 per cent year-on-year with income estimated at €2.71 bln compared to €2.63 bln the previous year which held the previous record.

Record-breaking income follows an unprecedented year for arrivals when Cyprus welcomed a record 3.93 million tourists in 2018, smashing the previous record set in 2017 by a whopping 7.8 per cent

In December alone, tourism income increased 1.1 per cent to 56.4 mln euros compared to the same month of 2017.

Britain constitutes the main source of tourism for Cyprus with a market share of 33.7 per cent followed by Russia with 19.9 per cent and Israel is third with 5.9 per cent.

The eastern Mediterranean island has benefited from its reputation as a regional safe haven as unrest has hit the tourism sectors of its traditional competitors Egypt, Tunisia and Turkey.

Expenditure per person for January – December 2018 decreased 4.8 per cent to €688.22 from €722.62 the previous year.

Spending per person/per day in 2018 also dipped 1.7 per cent (from €76.07 to €74.81).

There was also an 8.8 per cent decrease in the average length of stay from 10.2 days to 9.3 days.

In December, the most frugal visitors were the Belgians spending an average of €34.60 a day while the most extravagant were the Lebanese spending a whopping €116.96 per-day.

The tourism boom helped Cyprus return to growth following a €10-billion bailout to rescue its crumbling economy and insolvent banks in March 2013.

Income from tourism now accounts for about 15% of the country’s gross domestic product and is credited with underpinning a quick economic recovery with GDP growth touching 4 per cent.

In January, Cyprus swore in its first junior tourism minister, tasked with heading a new dedicated department to replace the state-funded Cyprus Tourism Organisation.