Filenews 15 November 2020 - by Dora Christodoulou
He was elected to the presidency of the EBE Paphos shortly before the second wave of the pandemic broke out. George May was asked to manage with "good morning" a state of emergency that is more serious than the 2013 crisis, for the business and commercial world.
However, having already experienced his long tenure in other posts of the Hellenic Tourism Development and Promotion Company of Paphos Region, Mr. May appears confident that Cyprus and especially Paphos will recover from this ordeal. He believes that things are difficult and will continue for a long time to come. But he notes that Paphos retains its comparative advantages and sooner or later they will return to the forefront.
-The assumption of the presidency of the EBE Paphos, Mr May, coincides with the greatest emergency in which our country is located as well as the whole world The impact on the daily lives of all of us is obvious, but in the area of the economy things are much more complicated and serious about the future consequences.
-It is a fact that my assumption of the presidency of the EBE Paphos coincided with a period when we are experiencing unprecedented situations with regard to measures to deal with the coronavirus pandemic and its consequences, which are primarily economic without ignoring other consequences which together make up an unpredictable situation that also shakes countries with the most resilient economies.
-How does this situation reflect the normality of economic activity in a small market size such as Cyprus and even more Paphos?
-As you have mentioned, there is a general uncertainty around the world with very negative effects on the economies of states and societies. People and businesses outside of economic problems also experience psychological stress due to general uncertainty in the areas of the economy, safety, health, etc. Paphos and by extension Cyprus as small markets feel the effects of changes concerning or affecting economic activity much more strongly but also directly. Bearing in mind, particularly for Paphos, that the pandemic has primarily affected tourism and land development, the two main areas of the province's activities, it is easy to see that we are experiencing without exaggeration a state of emergency.
-As a predominantly tourist area Paphos experiences multiple the consequences of the crisis brought about by the pandemic. Having in parallel with the EBRD and the presidency of the Paphos EFF, how do you see the prospects for the next day? Many predict that a return to three-year levels in 2017-2019 will simply be impossible.
-Paphos certainly continues to maintain the comparative advantages that make it attractive to foreign visitors and who with the improvement of health conditions will return. I believe this will start to happen after the second half of 2021. A complete return to normality, as far as tourism is concerned, cannot be done overnight, so I believe that it will take time and hard work by all those involved in this area. We must not forget that for our country this key sector faces constant challenges, such as competition, increased needs and demands of visitors, unstable factors such as climate change, developments in the region, etc., which requires constant vigilance and adaptability.
-Is it a real feeling of many that, unlike the tourism sector, the former pillar of the local economy, the construction industry, will overcome relatively comfortably the consequences of the crisis we are experiencing today?
-The other key pillar of the economy which is land development has been affected almost as much as tourism. The restriction of the movements of foreign buyers due to the pandemic, the general economic recession affecting the planet, the negative psychology and the termination of the Cyprus Investment Programme have riveted the sector, which is going through and will continue to go through difficult situations. Land development entrepreneurs and, by extension, the construction sector have shown considerable flexibility and adaptability in the past, so I believe it is only a matter of time before the problems are overcome, but in order to overcome them there must also be appropriate support from the State and the financial institutions.
- On the other hand, Of course, Mr May, the construction industry has received a resounding slap in the face with the naturalism hypothesis. What do traders think will happen in the future in this matter? Will the EU also find the formula for restoring a lucrative programme or should we write off this policy?
- I believe that the State should reinstate a new investment programme and will probably do so. Of course the philosophy of the new investment programme is expected to be different from the philosophy of the terminated programme. Cyprus, despite the country's crisis and international defamation, has comparative advantages that make it attractive for foreign investment and these advantages must now be more pronounced. Our strategic geographical position, the high level of professional services, accessibility, our tax system and existing infrastructure, together with other positive features that we have, allow us to claim and gain a remarkable share of the investments made in the region.
-Given the new economic reality created by the pandemic, Mr May, what is the situation in Paphos expected to be in the near future in terms of development?
-The disruption and economic conditions created by the coronavirus pandemic have affected and will continue to affect the province very negatively at least in the near future. For the private sector developments we have mentioned in summary above, particular emphasis should also be placed on state-funded development projects, which are the duty of all of us to work towards their implementation without delay.
Promotion of development projects
-On a purely local level: Projects have been carried out in recent years in the city and province of Paphos, but the capital of them still remains on paper. Marina, Paphos-City motorway, anchorage, new airport road, encounter problems that in the case of Paphos prove insurmountable. How optimistic are you, Mr May, that this situation is instantly reversed?
-It is a fact that in recent years there have been several projects mainly in the Municipality of Paphos but also in the other Municipalities of our province, which are mainly landscaping and regeneration projects that offer the quality of life of citizens. There are, as you rightly point out, several key infrastructure projects which are considered to be of super-local importance which remain entrenched.
The EBE Paphos, in cooperation with the deputies, mayors and other organised bodies of the province, have launched a new effort to promote these projects and believe me, this time we will be very persistent and pressing in every direction so that these projects can start to be implemented as soon as possible.
I can very briefly mention that the decision of the Bid Review Authority on the objection lodged by the second bidder of the project is expected for the Paphos – Chrysochous Road. The assurances we have on the part of the Government are that if the decision vindicates the first bidder, it will proceed immediately to award the tender and start work regardless of any legal appeals by the parties concerned.
The theme of the marina at potima and the anchorage is a combined development. The Ministry of Tourism has launched a tender for the selection of a scholar and the offer is expected to be awarded in December 2020. Personally, like all our co-chieftains, I am disappointed by the outcome of this project, since we had started the procedures at the same time as the Limassol marina, that is, from the first, we ended up having marinas built all over free Cyprus except Paphos.
For the project of connecting the new road Paphos - airport (Section of the river Eousa - airport) which is about 2.5 km long, as for the road Tombs of the Kings - Area of Potimes Kisonerga, has dealt with the body mentioned above and specific decisions have been taken which are being promoted rapidly in order to overcome some technical and bureaucratic problems. I believe that if we all continue together with perseverance and method, the problems will be overcome.
Attracting large companies
-The crisis seems to be changing dramatically with regard to the issue of luxury homes, skyscrapers, etc., for foreign millionaires. Do you think that there will now be negative consequences for the economy more broadly and the soundness of the construction companies of the place from the difficulty of finding a market for such projects?
-It is not certain that the crisis will change the data on luxury residences and tall buildings. There will always be those who will be willing to acquire such property. If we manage, for example, to attract large companies that settle in Cyprus, you understand that things are different because companies will want to acquire luxury offices and high-paid managers will be looking for luxury homes to buy or rent. The issue of the problems faced by companies in the construction industry is indeed real and has been answered above. Let me reiterate that what will be required is the necessary adjustment time and credit facilities.
