Cyprus Business Now: tourism, short-term rentals, unemployment, energy
He also warned that imposing strict regulations on short-term rentals could have negative economic consequences, particularly in tourism-dependent areas, by reducing property values, increasing non-performing loans, and making destinations less competitive.
“As the popularity of renting residential properties on a short-term basis grows in Cyprus and Greece, so too does the debate about their impact on the residential property market,” Loizou said.
“While some advocate for stricter regulations to curb rising rents and preserve housing for locals, it is important to recognise the broader economic implications of such measures,” he added.
He also said that “observing and analysing market forces, rather than imposing strict regulations, seems a wiser approach, with spatial planning rules for each area being applied instead”.
On the other side of the argument, the Cyprus Real Estate Agents Registration Council has repeatedly spoken against short-term rental properties.
Council president Marinos Kineyirou recently told the Cyprus News Agency (CNA) that short-term rentals were pushing rental prices up and making things difficult for students.
According to the Cyprus Statistical Service (Cystat), tourism revenue totalled €1.13 billion in the first half of 2024, up by 4.2 per cent from €1.09 billion during the corresponding period in 2023.
The average expenditure per tourist in June 2024 was €798.77, a slight increase of 1 per cent compared to €791.03 in June 2023.
Tourists from the United Kingdom, who made up the largest share of visitors at 35.6 per cent, spent an average of €94.66 per day.
Visitors from Israel, the second-largest market with 10.7 per cent of total tourists, had a higher daily spend of €146.16.
Meanwhile, Polish tourists, comprising 7.5 per cent of the total, spent an average of €78.00 per day.
Ahead of the scheme’s deadline on September 6, Kedipes said that it has processed 2,525 applications to date.
Of those applications, the company noted, 1,700 were found to have met the initial eligibility requirements based on borrowers’ financial situations and loan obligations.
Moreover, a considerable number are currently progressing through the more thorough stages of property eligibility, which involve technical inspections and value assessments.
Despite the scheme’s initial goal to complete 800 applications, the overwhelming response suggests this target is comfortably within reach, with some properties already transitioning to Kedipes’ ownership through formal Land Registry procedures.
At the same time, a number of rejection letters have been sent and 375 complaints have already been received on the basis of the planned procedure.
This marks an improvement from the rate of 5.7 per cent recorded in the same period last year.
According to the labour force survey, Cyprus’ total labour force numbered 511,423 people, representing 65.1 per cent of the population.
This is slightly down from the number of 511,573 people, a share of 65.9 per cent, recorded in the same period last year.
Of this total, male participation was slightly higher at 69.9 per cent, compared to female participation at 60.6 per cent.
In terms of employment, there were 487,663 employed individuals, which corresponds to an employment rate of 62 per cent.
This is a decline from the 62.1 per cent seen last year. The male employment rate stood at 67 per cent, while the rate for women was 57.5 per cent.
CEO of Power Energy Cyprus and Cyfield executive director George Chrysochos told CyBC that “we have been saying since 2018 that the natural gas market should never have been declared emerging but should be left in the hands of competition.”
He said natural gas was much cheaper than oil or crude oil and much more efficient and less polluting.
Chrysochos said that by opening the competitive market, one could expect a “30 to 40 per cent drop in the current price of electricity.”
“The economy as a whole would have a benefit of €300-€400 million,” he added.
The fastest way for the prices of electricity to drop would be to bring natural gas, Chrysochos said, adding that the interconnector would not bring cheaper energy to the island.
“At this moment there is mediation for Promitheas. We say that any amicable settlement or any painful solution would be much better than no solution at all,”
If efforts to bring Promitheas fail, “then we could rent a ship temporarily and import natural gas until the problem is solved.”
“The ship could be rented on behalf of the state or privately. If it is to be done privately, the market must cease being an emerging one.”
This is despite a modest decline in bookings this summer compared to last year, primarily attributed to geopolitical unrest in the Middle East.
Speaking to the Cyprus News Agency (CNA), Michaelides said that “occupancy rates hovered between 80 per cent and 85 per cent in August”.
He added that “so far, the summer is performing at satisfactory levels, with a slight decrease from last year in booking”.
Michaelides described this season as “quite difficult” due to market fluctuations.
He explained that the “situation in the Middle East not only reduced bookings from Israel but also triggered cancellations and diminished demand from other countries, which mistakenly perceive Cyprus as close to conflict zones“.
According to an official announcement, the new platform focuses on critical sectors such as artificial intelligence (AI), green energy, as well as health and longevity.
“We believe these sectors will drive the future for the foreseeable future, creating sustainable value and fostering innovation,” the company stated.
The company said that it has established a significant presence in Greece and Cyprus, noting that, through its investments in various companies, it has helped increase their value, while also enabling them to access foreign markets.
In terms of artificial intelligence, Brookstreet said that it focuses on investment opportunities in areas such as Software as a Service (SaaS), integrated IT solutions, and patentable, groundbreaking technologies.
“In the rapidly evolving landscape of artificial intelligence and digital technology, Brookstreet is dedicated to investing in pioneering companies at the forefront of the Gen-Al Revolution,” the company said.
The Cyprus Stock Exchange (CSE) ended Thursday, August 29 with negligible profits.
The general Cyprus Stock Market Index was at 179.47 points at 13:36 during the day, reflecting an increase of 0.02 per cent over the previous day of trading.
The FTSE / CySE 20 Index was at 109.59 points, representing a rise of 0.01 per cent.
The total value of transactions came up to €516,968, until the aforementioned time during trading.
In terms of the sub-indexes, the main and investment firm indexes fell by 0.13 per cent and 1.52 per cent respectively. The alternative index rose by 0.32 per cent while the hotel index increased by 0.49 per cent.
The biggest investment interest was attracted by the Bank of Cyprus (+0.62 per cent), Logicom (+0.67 per cent), Demetra (-1.5 per cent), Demetra (-1.5 per cent), KEO PLC (+2.7 per cent), and Pandora (-1.25 per cent).