Cyprus Tourism Organisation unveils incentives plan to attract investment

The Cyprus Tourism Organisation (CTO) unveiled a draft outline of its plan to attract investment in the tourist industry, to be funded jointly by the European Union and the CTO.

Speaking at a press conference CTO’s Director of Tourism Division Lefkos Filaktides said the incentives plan is part of the Strategy for Tourism Development which provides for reduction in hotel beds, and a change in accommodation patterns in order to render Cyprus a more competitive destination.

The draft plan, he explained, is expected to be finalized in October this year and by March next year the CTO will be ready to examine the first applications, with the initial funding expected to be allocated in the second half of 2008.

The coordinator of the plan Konstantinos Theos said that CTO will provide EUR 13 mln with a view to encourage investment initiatives from business, to improve infrastructure and services and upgrade the tourist product.

The plan also envisages the construction of golf courses, thematic parks, health tourism, conference centres, workshops and activities for the visitors, exhibition venues and sports facilities. It also includes investment plans to upgrade existing hotels and hotel apartments, from two to four star.

Source: Financial Mirror

Annual Property Investment Conference to be held in London

Jet to Let Magazine’s Annual Property Investment Conference will be held on Saturday 8th September 2007, at The Hilton London Metropole.

Attendance to the inaugural conference is open to anyone, and is aimed at investors wanting to take advantage of the strong returns available from well-targeted overseas property investments. Whether you are a first time investor, or building on a portfolio of properties, you will find this the ideal opportunity to mix with property experts and like minded investors.

 

The conference is a must for anyone seeking to maximise their returns whilst minimising risk. Profit from the opportunity to learn from and question leading experts in the industry, and network afterwards with our expert speakers and conference attendees.

 

The conference programme for the day is:

- The power of leveraged finance: how to make 1000% Return on Investment over 2 years
- Overseas property investment strategies: how to best achieve your financial goals and targets
- Risks: how to control risk and limit the downside
- How to use the fluctuations in currencies to increase returns
- Property management and lettings strategy: the do’s and don’ts

- Around the world in 2 hours. A look at the property investment scene, latest areas and how to capitalise on opportunities

 

Your Personal Investment strategy

 

Additionally to these seminars, there will be an opportunity for networking and discussions with advisors, as well as the chance to book a FREE personal property investment consultation with a leading expert.

 

-  The consultations will cover

-  Raising finance for investing

-  Personal property investment strategy

 

Tax minimisation strategies to reduce liabilities

 

These FREE, no obligation consultations must be pre-booked. Availability is limited, so please book early to avoid disappointment.

 

Special Offer

 

The price to attend Jet to Let Magazines Property Investment conference is just £97 (plus VAT) per person.

 

However in addition to this low price, we are also running a Special Offer: £149 (plus VAT) for 2 people, A saving of over £50.

 

To book your place at Jet-to-Let Magazine’s Annual Conference, please either:

Telephone: 08000 277 336

Email: conference@jet-to-let-magazine.com

Web: www.jet-to-let-magazine.com

IKEA Cyprus to open in September

The budget furniture store IKEA will open its first outlet in Cyprus on September 5 within the busiest commercial square mile on the outskirts of Nicosia, where other store openings are expected the same month in what is probably going to be the biggest shopping mall on the island.

Vassilis Fourlis, president of the operator of the furniture franchise that already has two IKEA stores in Greece, will be in Cyprus for the inauguration of the 22,000 sq.m. store strategically located within the ‘Mall of Cyprus’ at the Shacolas Emporium Park that will include retail stores, clothing shops and food outlets.

Fourlis will also be here next week for a media event and to introduce the IKEA catalogue that will be distributed in the wider market.

Although IKEA products can no longer be placed in the ‘low cost’ category, they are known for their functionality, simple designs and affordable prices.

The Fourlis group officially announced in October 2005 that it was to build the first IKEA store in Cyprus, through its House Market subsidiary. It was initially expected to commence operations by June this year, but has been recruiting local staff for training since last year.

Fourlis’ flagship store with a floor space of 20,000 sq.m. opened in Thessaloniki, followed by a second 25,000 sq.m. IKEA store near Athens airport last year. A second Athens outlet is expected to open in September and the Group also plans to open a new IKEA outlet in Bulgaria in 2008.

The cost of establishing the Cyprus and Athens stores is estimated at EUR 40 mln, while the annual turnover of House Market following the full operation of all three stores is expected to top EUR 300 mln.

IKEA Cyprus is expected to generate annual sales of EUR 40-50 mln, Vassilis Fourlis told Reuters in an interview last October 2006, while the sale of a 20% stake in Kotsovolos to Dixons Group is estimated at contribute EUR 32 mln to Fourlis Group earnings.

The IKEA opening is regarded as a welcome move in Cyprus, after the IKEA-owned Habitat franchise in Nicosia closed unceremoniously last December due to troubles at the Greek franchise operations.

At the time of closure a Habitat statement read: “It is with deepest regret that we confirm Habitat’s franchise partner Franco Import has come into financial difficulties leading to the closure of four stores – three in Athens and one in Cyprus – on December 11. This situation has been triggered by an external supplier to Franco Import, not by Habitat.”

The statement went on to say that Franco Import and Habitat UK Limited have been partners for almost ten years and that the company was, “saddened that Franco is facing challenging circumstances.”

Though the companies are owned by the same conglomerate, the opening of two IKEA superstores in Athens and Thessaloniki is said to have hit Habitat hard in Greece, with an Athenian newspaper reporting that it was only a matter of time before Habitat got into trouble.

Habitat is owned by the Ikano Group and operates as an independent commercial legal entity from the IKEA Group.

The Habitat store in Nicosia reopened its doors to the public briefly in March in an attempt to get rid of its outstanding stock and satisfy previous orders.

The store has since been taken over by the TAG Designer clothing company that already operates a store on Zena Gunther road.

Source: Financial Mirror  

Emerging markets investment 'surprise'

New research from Holidaylettings.co.uk has revealed that emerging markets dominate the overseas property investment rankings…

With yet another interest rate rise in the bag for the banks, expect the British obsession with property investment to take another step towards the nearest airport and the newest investment hotspot.

Holidaylettings.co.uk has seen an abundance of holiday homes being advertised in new locations since the start of the year and now offers accommodation in 100 countries.

New countries on the holiday home map: Jan – June ‘07

1. Croatia

2. Hungary

3. Slovenia

4. Mexico

5. Argentina

Countries adding greatest volume of holiday homes June: ‘06 - June ‘07

1. Spain

2. France

3. Italy

4. Portugal

5. Cyprus

Argentina and Brazil come to the fore

New self-catering holiday offerings include eagerly awaited Eastern Europe entrants Poland, Estonia and Slovenia and a South American influx, most notably in México, Argentina and Brazil. Dubai has come into its own in the last 12 months with its offering of self catering accommodation as an alternative to hotels. With many new developments underway there the number of self catering options is expected to grow.

Traditional holiday home favourites France, Italy, Spain and Florida, where tourism and holiday property are already so well established are still attracting investors, a growing number of which cover their costs by letting them out to holidaymakers. Over 2,000 Spanish holiday properties have been added to the site in the first six months of 2007, compared to only 1,200 added in the same period last year.

For those seeking the laid back lifestyle and temperate climate found in Spain, but away from the over development of the Costas, Portugal has experienced the fiercest holiday home growth in Western Europe in the last year. The number of Portuguese holiday homes available to let through Holidaylettings.co.uk has increased from 300 to just under 1,000 in the last 12 months, an increase in excess of 300%.

Europe’s ongoing attraction

Another destination showing investment promise and working on attracting more holidaymakers is Cyprus. The number of holiday home rentals in Cyprus has more than doubled since June last year, supporting figures from the Cypriot Land Registry which reveal that 12,000 Britons now own homes in Cyprus.

“These figures demonstrate the ongoing attraction of Western Europe as an investment location and how, with the case of Portugal, with its easy access from the UK it still has property investment potential,” says Ross Elder, MD of Holidaylettings.co.uk. “With yet more investment in Eastern Europe and South America it will be interesting to monitor how these markets develop in the next couple of years.

“It is vital for investors that there is a sufficient tourism draw and affordable flights are available in order for holidaymakers to be drawn to these areas. No matter how many developments are built, renovations completed or holiday homes advertised there needs to be a demand from holidaymakers for self catering accommodation.”

Source: The Move Channel

Cyprus and Malta get go ahead to start using euro next year

BRUSSELS, Belgium: The European Union on Tuesday gave Cyprus and Malta final approval to start using the euro next year, taking to 15 the number of nations sharing the currency.

Finance ministers voted to allow the two Mediterranean nations to join the currency zone on Jan. 1.

They also set an exchange rate of one euro to 0.585274 Cypriot pounds and 0.4293 Maltese lira when the two countries swap their existing coins and banknotes for the euro.

Cyprus and Malta will bring just over 1 million people to the 318 million who now use the euro. Their economies account for only 0.2 percent of euro-zone gross domestic product.

Both joined the EU in May 2004. Only one other country that joined the EU at the same time — Slovenia — has so far adopted the euro.

The largest of the EU newcomers — Poland, Hungary, the Czech Republic, Romania and Bulgaria — have yet to set a date for euro entry. Estonia had originally planned to join next year but will delay membership as its growing economy sees inflation surge, a problem that has also slowed Latvian and Lithuanian plans. Slovakia is scheduled to join in 2009.

Cyprus and Malta worked hard to meet the strict EU economic standards for euro nations, with Cypriot workers agreeing to lower wage demands that could boost inflation while Malta paid off debt to cut its budget deficit below the EU maximum of 3 percent of gross domestic product.

EU Economic and Monetary Affairs Commissioner Joaquin Almunia said he recognized the effort they had made to fulfil the entrance criteria.

To keep their shared currency stable, euro nations are also supposed to keep overall public debt below 60 percent of gross domestic product.

However, even the largest euro economies have had trouble with these rules and euro candidates can be accepted if they can show that they are on track to meet these limits.

Cyprus became part of the EU a month after Greek Cypriots voted against a United Nations plan that would have led to reunification with the breakaway Turkish Cypriot state in the north of the island. EU officials have warned Turkish Cypriots against starting to use the euro as their currency without approval.

Source: International Herald Tribune

July 8 agreement

Government Spokesman Vassilis Palmas has said that the Greek Cypriot side has no indication that Turkey or the Turkish Cypriot side have any will to begin a dialogue to solve the Cyprus problem, noting that if Turkey believed that "at this or any future stage there should be no movement, then things will be difficult." Palmas said if there was "any political will on behalf of Turkey to create the conditions to move forward regarding the Cyprus problem, then there is a possibility to make progress through the 8 July 2006 agreement." 
 
Replying to questions, Palmas said "we have repeatedly proven our intention and will to create circumstances and conditions for progress regarding the July 8 agreement." "From thereon, in order to create the conditions for improvement and progress regarding an agreement reached between the Greek Cypriot and the Turkish Cypriot side and the United Nations, the positive will of both sides is necessary," he pointed out.
 
Asked about the July 8 agreement in relation to the forthcoming elections in Turkey, Palmas said that "due to the fluid political situation in Turkey there is immobility regarding the July 8 agreement." "We, the government, have said many times that the key is in Ankara and in Turkey," the Spokesman added. 
 
Source: Cyprus News Agency 

Presidential elections

The three parliamentary parties that support the government of President Tassos Papadopoulos have continued their separate discussions, as prospective candidates ponder on announcing their bid for Februarys presidential elections.

The main coalition government partner left wing AKEL voted Wednesday by an overwhelming majority to propose its General Secretary Demetris Christofias, President of the House of Representatives, to the party extraordinary congress on Sunday as its candidate for the presidency. The congress will take the party final decision on the matter.

The centre right Democratic Party (DIKO), formerly headed by Papadopoulos, decided unanimously on Wednesday to back Papadopoulos in his bid for re-election, which he is expected to announce sometime soon.

The other coalition partner, Social Democrats Movement EDEK, ratified on Wednesday a Central Committee decision to back Papadopoulos in February next year.

So far there are only two candidacies for the presidency. Former Foreign Minister Ioannis Kasoulides, who is backed by the main opposition party Democratic Rally, and former Agriculture Minister Costas Themistocleous.

However, it has become all but clear that Christofias and Papadopoulos are set to announce their respective candidacies in the days ahead.

AKEL Central Committee backed Christofias candidacy by 85 votes in favour, 12 against and three abstentions, party spokesman Andros Kyprianou said at midnight Wednesday, after an eight hour marathon Committee meeting.

He said the party Political Bureau recommendation to contest the elections with Christofias, on behalf of the three coalition partners, was presented to Wednesdays meeting, in addition to party grass roots decisions about the elections.

AKEL participates in the government with four ministers (foreign, interior, communications and health) who are widely expected to leave their posts, should Christofias announce his candidacy for the presidency.

DIKO President Marios Karoyian told the press last night after a Central Committee meeting that Papadopoulos candidacy on behalf of the three coalition partners would all but ensure only one round of elections, that would certainly result in a resounding victory of the tri-partite coalition.

EDEK spokesman Demetris Papadakis said that the party Political Bureau reviewed the outcome of local and district party meetings and ratified the Central Committee proposal to back Papadopoulos.

Source: Cyprus News Agency

Cyprus - Egypt - road agreement

Cyprus and Egypt have signed an agreement on International Road Transport of Passengers and Goods, to further cement relations between the two countries and open the doors to foreign trade for both countries. The agreement was signed by Cypriot Minister of Communications and Works Harris Thrassou and Egyptian Minister of Transport Mohamed Loutfy Mansour.

Thrassou said the signing of this agreement “on road transport will strengthen furthermore these relations and promote the cooperation between the two countries. I am convinced that this is only part of a new era of fruitful cooperation between Egypt and Cyprus”. He also said that “Cyprus and Egypt have always been excellent neighbours since ancient times ever since our region was the center of the civilization” and during their discussions, they evaluated issues on Merchant Shipping, Road Transport and Ports and established a framework for developing our cooperation.

“Cyprus being a member of the European Union acts as a platform for nearby friendly nations such as Egypt to access the EU market in a more efficient and profitable manner”, he concluded. Mansour said “our purpose here is to further cement the relationship that we have between our two neighbouring and brotherly countries.

Source- Cyprus News Agency