ANNOUNCED AS TEMPORARYNo
Tax or social insurance relief
The government of Cyprus is revising its support for the tourism sector. On 12 February 2009 the Minister of Commerce, Industry and Tourism, Mr. Antonis Paschalides, presented the measures adopted by the government to fight the impact of the economic crisis on the tourism industry in Cyprus.
The support measures decided by the Council of Ministers amount to EUR51 million and include decrease in VAT from 8% to 5%, abolition of Municipalities' accommodation fees, abolition of landing fees.
The measures are supposed to lead to a decrease of price of Cyprus tourist services. Before the government also increased the budget of the Cyprus Tourism Organisation with an extra EUR4.5million in 2008 and for 2009 an extra EUR12 million are to be used mostly for additional advertising and promotion.
Furthermore, the Cyprus High Commission Trade Centre in London informed on its webstie (as of September 10, 2009) that invitations will be issued for investment in the tourism sector following the launch of a package of incentives with EUR13 million. Over EUR5 million is supposed to reach hoteliers with the aim to upgrade, and the rest will be distributed to local or foreign investors for projects that will enhance Cyprus tourism. According to the Cyprus Tourism Organisation if the money is indeed distributed and there is enough interest in applying for it could stimulate a total investment in the tourism sector of EUR55 million.
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