Filenews 27 September 2021 - by Dora Christodoulou
2022 is also expected to be difficult for Paphos, since the effects of the pandemic will continue to affect its economy at least in the near future, estimates the president of the Pafos Chamber of Commerce and Energy.
George May, speaking to "F", stressed that it is of major importance to support domestic consumption by providing incentives to employees to continue to stimulate economic activity. This is also shown by the support measures that the Government continues to apply, both to businesses and to employees, he said, explaining that with this policy the Government hopes that it will enable the business world and the employees to continue their activities."References to layoffs and wage cuts cannot help revive economic activity," Mr. May warned. "Such reports will increase the uncertainty and insecurity of citizens about their jobs, but also about their incomes, resulting in a reduction in consumer spending, with a serious impact on the economy."
The president of the Pafos BCCI also mentioned that on the front of the programme for issuing a permanent residence permit to property buyers, the news is not good. Cyprus is lagging behind other competing destinations mainly because it has not been possible to join the Schengen area, with the result that permanent residents, holders of the permanent residence permit, are deprived of the right of free movement.
"Free movement within the Schengen area is the main issue for those who acquire permanent residence," he pointed out.
Land development and construction entrepreneurs have in the past gone through significant difficulties, such as those they face during the pandemic, but have proved that they are able to make the decisions that will lead to recovery this time too, he stressed, adding however that support from the state and financial institutions is needed at the same time to achieve this quickly.
Referring to the situation of the construction sector, as well as tourism, Mr. May pointed out that one of the main objectives of the Pafos BCCI is to attract investments to the province, in areas such as new technologies.
"Tourism and land development, i.e. the two main if not only pillars of the economy of the Pafos district, have been significantly affected by the pandemic these two years," he says. "The positive and optimistic fact in this situation, however, is that Pafos continues to maintain the comparative advantages that make it attractive for foreign visitors, so that with the normalization of the international situation it can recover swiftly."
The president of the Pafos Chamber of Commerce and Industry warned that normality, especially as far as tourism is concerned, will not occur immediately, but after time and hard work, as he said.
"Competition, the increased needs and demands of visitors, the imponderable factors, such as climate change, developments in the region, are factors that have a direct consequence and impact on our tourism, so continuous adaptability is required", he stressed. "As far as land development is concerned, it is obvious that the restriction of the movement of foreign buyers due to the pandemic, as well as the general economic recession that is affecting the planet as a result of the pandemic, have contributed to the sector going through difficult days. Difficulties multiplied by the negative developments of the Cyprus Investment Programme".
Andreas Dimitriadis: Mobility in small developments
Similarly scepticism is expressed by the president of the Pancyprian Association of Great Developments, Andreas Dimitriadis, speaking to "F".
Everyone's attention may be focused on tourism at this time of restarting the economy, but the construction industry has also timidly begun to rediscover a relative momentum in the post-pandemic era, he pointed out, clarifying, however, that there is movement at this stage mainly in small developments.
"Mobility has indeed begun due to the demand for small developments, such as housing," he says. "People have started asking for and buying houses or apartments again, which is why the development on this scale of projects has already begun.
On the contrary, for the large developments I would say that there is still a frozen interest and anticipation. Banks are not yet interested in lending to such scales of projects, considering that they are still exposed to non-performing loans, while investors from abroad still appear numb for exposures of this magnitude."
The positive sample for the next day, Andreas Dimitriadis stressed, is the high demand presented for the transfer of the headquarters of large international companies to Cyprus from foreign countries. This development, he explained, is of major importance, because it also involves movement in the field of large developments.
"A large company that decides to move its base to Cyprus", he observes, "means that it will need business premises for its 1000 or 2000 employees, it will need residences for all of them and the like".
