Daily Press Review - 30/3/2020

In the press over the weekend and today:

Hellenic Bank: Beware of malicious SMS

Hellenic Bank is calling on its customers to beware of malicious SMS inviting them to post personal information on websites. The bank said there has been an increased number of attacks where personal data and money have been stolen. A similar letter had been sent earlier by Bank of Cyprus, urging its customers not to give out the details of their credit cards.

 

Queues at banks have not been averted

The State Treasury announced that pensions of former public employees would be paid into bank accounts on Friday. It is noted that the salaries of public servants and government contract workers will be deposited on Monday. However, the same will not apply for the rest of the 140,000 pensioners of the Social Security Fund. The pensioners’ association had proposed that pensions were paid earlier, so that there was better planning and in order to avoid long queues at the banks and ATMs. However, this did not happen and therefore the congestion at the banks will not be avoided. Combined with the fact that Hellenic Bank has closed branches because of the coronavirus, Monday is expected to be hectic at the banks, while the vulnerable groups in particular, such as pensioners, will be even more exposed to the coronavirus.

 

Banks’ changes because of the epidemic

RCB Bank has increased the limit of contactless transactions with its cards from €20 to €50 as a measure to deal with the coronavirus epidemic. Alpha Bank Cyprus Ltd announced that as of Monday, 30 March, the following measures will apply: its branches will only be open for basic operations; cash withdrawals of up to €900, deposits of up to €1,000 and deposits of up to five cheques will be carried out through ATMs only; account statements and information will be accessed through the web service Alpha Express Banking; bills and road tax payments will not be accepted.

 

Beware of messages claiming you have won prizes

A scam message is being sent claiming to be from a well-known electrics’ shops in Cyprus, telling people they have won a prize and urging them to follow a link, where they post their credit card details and then their money is stolen. The police are warning the public to beware, as a number of citizens have received such messages and reported them to the police.

 

 

No rent at JCC terminals for three months

JCC Payment Systems Ltd has announced that for a period of three months, it will not charge its clients rent for its ATMs, as part of its social contribution amidst the coronavirus epidemic.

 

Two classes of workers on the market

There are two classes of workers currently on the market. On the one hand there are public servants, who have so far not been affected by the coronavirus, and on the other there is a large section of workers in the private sector, especially the retail industry and broader hotel industry, who require assistance from the state as they no longer have an income. Finance Minister Constantinos Petrides has said that the assistance that is being given by the government is to ensure that there are no redundancies and bankruptcies. There is also a third class of workers in the private sector, and these are the 8,470 bank employees. They may have job security, but it is a high-risk profession due to the evaluation of the sector and the regular voluntary retirement schemes. According to data gathered by Phileleftheros, 52,484 public employees are not under threat of unemployment or loss of income at present, even though employers’ organisations have been demanding salary cuts in the public sector.

 

Russia targets Cyprus

The Russian government appears determined to repatriate Russian capital, but also to increase its tax revenue. Following Russian President Vladimir Putin’s announcement that he intends to revise the country’s tax treaties, the Russian Finance Ministry has singled out Cyprus when referring to the changes that will take place. The relevant announcement by the ministry refers only to Cyprus by name, in its list of countries that Russia intends to revise its tax treaties. What’s more, Putin has said that any states that do not accept Russia’s suggestions will see the treaties unilaterally cancelled.  The Russian Finance Ministry said: “The changes that have been streamlined to increase the tax coefficient on revenue that comes from yields and interest will affect the so-called transit jurisdictions. The companies in such jurisdictions are created in order to benefit from reduced tax coefficients, which are defined through double taxation treaties. This applies mainly in the case of Cyprus, and a series of other similar jurisdictions.” This announcement raised the alarm with Cypriot authorities and professional service providers, as the countries have close business ties. There is a strong Russian business community in Cyprus, while stakeholders believe that the Russian government made this move because much fewer taxes are paid in certain jurisdictions, such as Cyprus, than if they were headquartered in Russia.

 

Dozens of public projects postponed

The implementation of dozens of public projects has been postponed in order to save funds for the economy, what with the coronavirus outbreak. At the same time, the Central Committee for Variations and Claims has made a series of decisions to facilitate contractors who are implementing public projects that are already underway so they can continue as best possible.

 

Hellenic Bank supports Hope for Children

With a view to safeguard the welfare and protection of unaccompanied children living in Hope for Children’s children’s housing, is supporting the organisation financially so that it can pre-emptively disinfect the premises where children are living. Specifically, Hellenic Bank’s support boosted disinfections in three houses in Larnaca and Limassol covering a total area of 1,300sqm and accommodating at the moment 112 unaccompanied children. “We are going through a difficult period for the whole of humanity and each responsible organisation has the minimum obligation to contribute to the wider effort to tackle the pandemic. In this framework, Hellenic Bank has considered it its obligation to support the Hope for Children organisation in its important work, providing it with the necessary financial support to conduct preventive disinfections in the children’s housing facilities”, the Bank’s Communications and Public Relations Director George Sklavos. It should be noted that Hellenic Bank has also taken these specific measures to protect the members of its personnel as well as customers, adapting its operations to the recommendations and official guidelines of the Ministry of Health. Specifically, the bank announced that in the coming period, it will be operating with a limited number of branches. At the same time, it has disinfected all of its branches and office buildings.

 

The relentless and pessimistic social science that is economy  

Opinion editorial, authored by Kyriakos E. Georgiou, who calls himself a “worker of knowledge”. He refers to mismanagement in the Cyprus economy, saying among other that it didn’t end in 2013, but continued, peaking with the collapse of the co-op and its acquisition by HB, which helped the latter gain ground on competitor Bank of Cyprus. He says that everyone involved were responsible for the collapse – executives, managers, secretariat members and boards of directors, and of course the Finance Minister at the time.

 

Hellenic Bank: 20 scholarships through Jumpstart 2019-2023

The 20 new students who joined HB’s Jumpstart 2019-2023 scholarship programme received the first part of their scholarship, during a meeting that was held at the bank’s Amphipolis building. At the event, the students received their cheques and were informed about HB’s internship programmes, as well as about how to improve their CVs.

 

#SupportCy

Businesses, non-governmental organisations and organised groups are working together in a structured manner to support those who support us. The Support Network is geared at public entities and government departments and services that are currently undertaking a colossal and unprecedented effort. It is only natural that state apparatuses and entities, but above all the people working there, need our support. Through the operations, products and services of Network members we are doing our part in supporting state institutions, helping them achieve their goals. The network already includes Zorbas Bakeries, Bionic and Public. Bank of Cyprus will assist in the effort financially and organisationally, along with its main partner, the Reaction NGO. We are asking anyone who wants and believes they can help, to get in touch with us at supportcy@bankofcyprus.com providing basic information about their offer as well as their contact details. This call goes out not only to individual volunteers, but also to organised groups, NGOs, businesses and other entities. #SupportCY

 

€14.8b excess liquidity at the banks

The banks are capable to support households and businesses, as they have excess liquidity of €14.8b, while at the same time they are expected to receive another €2b in guarantees from the state as well as €1.4b through supervisory relaxations. Despite this, however, the banks have yet to announce any specific measures to support households and businesses, besides the customary wishes and promises. According to Central Bank data, in February, total deposits at Cypriot banks were €48.4b, while total loans were €33.6b. This means that they have excess liquidity of €14.8b. In fact, a large part of this sum is deposited at the European Central Bank, with a 0.5% penalty. The systemic banks have the most excess liquidity, whose loans to deposits ratio is 74.7%, compared with the Eurozone’s 102.1%, according to ECB data. This is the second lowest ratio after Slovenia (73.9%), which is confirmation of the Cypriot banks’ capabilities to finance the economy, so that the impact from the coronavirus can be countered.

 

The governor

Politis comments that Central Bank Governor Constantinos Herodotou has managed to do something his predecessors couldn’t, despite their best efforts: cooperate with the government and come up with solutions. The fact that he keeps a low profile, makes sure not to leave himself exposed to criticism and has not rubbed people up the wrong way have helped establish his credibility.

 

We can make it

Phileleftheros Economy interviews former Finance Minister Harris Georgiades, who estimates that there will be a swift and strong recovery from the coronavirus pandemic, if it stops spreading across Europe within the next two months. The most important thing for now, he says, is to ensure that this temporary interruption of economic activity does not have irreversible consequences on businesses, which will lead to a loss in productive human resources and jobs. At the same time, he says the family income needs to be safeguarded for those workers who have been forced to take leave from work. He says the measures that have been taken by the government and Central Bank are satisfactory and will help alleviate the situation.

 

Citizenships again due to coronavirus

More Cypriot citizenships are expected to be granted over the coming months, as part of efforts to help the economy recover from the coronavirus crisis. Despite the legislative restrictions, but also the decision to revoke 29 investors’ citizenships, among the emergency measures taken by the government to deal with the pandemic are regulations for the citizenship by investment scheme. Specifically, it has been decided that the procedures to examine applications are accelerated. According to the relevant data, the specific scheme contributes 1.2% to the GDP, while from 2013 until present, the scheme has contributed €6.6b to state coffers, from those investing at least €2.5b in the country in exchange for a Cypriot passport.

 

Suspension of loan instalments passed

Loan payments to banks on performing loans (PLs) are now suspended until the end of the year. Parliament approved by majority, the government’s loan payment suspension bill, with a number of amendments. The bill calls for the suspension of all loan payments and interest on loans for individuals, the self-employed and businesses for a period of 9 months. Loan payments are now suspended until December 31 2020. A total of 31 MPs voted in favour and 24 against. DISY and DIKO voted in favour, while AKEL, EDEK, the Green Party, the Alliance and ELAM were against. The moratorium on loan instalments aims to bolster households and businesses battered by the coronavirus crisis and stave off unemployment. Finance minister Constantinos Petrides will be issuing a relevant decree tomorrow. The House which convened under strict safety precautions, postponed the discussion of a second bill which provides for €2 billion in state guarantees to banks in order to grant low interest loans to the self-employed, as well as small and medium sized businesses, hardest hit by the crisis. Central Bank Governor Constantinos Herodotou made clear that loan payments to be suspended (both housing and consumer loans) according to bill proposals that will be put to the house of parliament later today, will not be immediately payable following the end of the period of suspension as stipulated in the bills in question. In an extensive tweet, Herodotou said he wanted to refer to certain ‘truths’, as he put it, that people should know about loan payment suspension. As he said, the bill calls for the ‘suspension, for individuals, self-employed and businesses of the commitment to payments, including interest’. What is also suspended, is the possibility by ‘the creditor to regain their credit allowances’.

 

Instalments and interest

(On the topic above): On a practical level, the major issue was to approve the procedure for issuing a decree to postpone loan instalments, in order to avert a new generation of NPLs or previously non-performing loans going in the red again. It is worth noting that if a loan becomes non-performing for a second time, it remains permanently in the NPL category until it is paid off. As for interest, the Central Bank governor explained that the total of capital instalments and interest that are postponed, will be added to the loan balance once the decree expires, and will not have to be paid straight away. As for the addition of compound interest, he said that this is required by the regulations so that the loan is not automatically classified as an NPL. However, for a €100,000, 10-year loan with 3% interest, the compound interest from the postponed instalments will be a total of less than €55.

 

The government bowed to the banks

On the topic above, Haravgi reports that the banks are once again not contributing at all towards dealing with the crisis. DISY, DIKO and Solidarity Movement voted in a law to suspend loan instalments, but this does not protect citizens from the arbitrariness of the banks. Main opposition AKEL attempted to improve the government’s proposal with specific suggestions, but they were not accepted and so it voted against the bill. AKEL had suggested that the interest is 0% for the nine-month period, but this was not accepted. It also suggested that the interest is not added to the loan, but instead transferred to the end of the repayment period, so as to at least avoid the addition of compound interest at the end of each year. This was not accepted either.

 

Society is bearing the brunt again

Haravgi comments that once again, it is the working and poor classes that are bearing the brunt of the new crisis, while they are still struggling to recover from the previous crisis. Meanwhile, the banks are almost untouched, while their profits in the long term are being ensured. Specifically, parliament passed a suspension of loan instalments for nine months, but once this period is over, the banks will add compound interest for all the interest they didn’t collect, which means they will be late receiving their money but in the end they will get more.

 

Coronavirus has struck Bank of Cyprus

A Bank of Cyprus employee has tested positive for the coronavirus. According to sources, the employee visited two of the bank’s branches for work-related issues; the Latsia and Agioi Omologites branches in Nicosia. He then developed coronavirus symptoms and tested positive to the virus. The bank’s protocol was then activated. In a message to staff, the bank’s management said: “Transparency is demanded to protect all, and so no business or organisation should avoid publicising information that will protect colleagues, clients and associates. We have positive cases. Two branches that had contact are closing. The relevant authorities have started the procedure to trace contacts.” It added that the state authorities were tracing all those who came into contact with the individual and they were being tested. Therefore, employees and clients that may have come into contact with the individual will receive a notification to go and get tested.

 

Bank of Cyprus’ #SupportCy network is growing

#SupportCy is a support network of companies and organisations that was created by Bank of Cyprus, with its main partner being the NGO Reaction. The aim is to reinforce the state’s effort to fight the coronavirus outbreak with its members’ operations, products and services. The network is actively supported by the Labour Ministry, to help individuals who cannot leave their homes or don’t have people to help them, to get food, medicines and other essentials. New members are added to the network daily; so far, these are Bionic, C.A. Papaellinas, DHL, Kids Alternativities, McDonald’s, Olitech Ltd, Polignosi, Public, Unicars, Wood n Fire Art Bakery, 3CX, Politis newspaper, Cyprus Cycling Federation NGO Cyprus Computers Society, NGO Cyprus Mathematical Society, Petrolina, Cyprus Symphony Orchestra and Zorbas Bakeries.

 

VAT exemptions

The government is implementing a series of measures to assist the operations of businesses, including the non-payment of VAT for the tax periods ending February, March and April, with the exception of businesses that have not been affected by the pandemic and are operating as normal.

 

Municipalities, organisations and Departments continue to take measures against the coronavirus

In order to protect the health of the public and their personnel from the spread of the coronavirus, municipalities, organisations government departments and companies continue to take measures, while companies offer products for the needs of households in need. The article also refers to DP World Limassol’s introduction of two new digital payment solutions through the JCC Portal, offering the opportunity to all its customers to carry out any transaction safely and easily. According to DP World Limassol’s announcement, customers will be able to carry out transactions through the JCC Portal, while invoice payments can be carried out through JCC Smart methods.

CEO DP World Limassol, Nawaf Abdulla: Trade activities as normal at DP World Limassol port terminal

All trade enabling activities at the terminal are being carried out as normal at Limassol Port, the CEO of DP World Limassol, Nawaf Abdulla said on Thursday while assuring that all steps are being taken to protect the port community . In a written statement, Abdulla said “At DP World, the safety and well-being of our employees and our customers is always our priority, and we recognise the important role we play in providing our customers with network connectivity and supply chain solutions to enable global trade during this critical time. We are actively monitoring the Coronavirus (COVID-19) situation and taking steps to ensure the continued safety of our community. DP World Limassol, as a company managing critical port infrastructure of vital importance to the Cyprus economy, has implemented business continuity plans that ensure continuity of its operations. Currently, all trade enabling activities and quayside operations are being carried out as normal, he added. During this public health crisis, the collaboration between the Cyprus Government, business community and the public sector is absolutely essential and we are working closely with local stakeholders to achieve the best possible result, he noted. In order to protect our port community and those with whom they come in contact e.g. contractors, visitors and vessel crews etc. we require that all entities based and operating at the terminal under DP World Limassol’s administration, comply fully with the issued guidelines from local authorities. “In addition to these preventive measures, all business travel has been cancelled, we are postponing all events, all meetings are held virtually where possible, we are providing remote-work solutions for those of our staff who can work at home and we continue to reinforce safe behaviour in every business and office environment, where we have implemented additional steps in line with local guidelines. We are sourcing as many protective supplies as possible and we have protocols in place that activate closures, disinfection and appropriate quarantine procedures based on recommendations by the government and health agencies,” he said. And he concluded: “Currently, our main goal is to effectively protect our stakeholder community, while serving our customers in a safe manner and ensuring business operations continue to the benefit of the Cyprus economy. DP World Limassol has been already implementing precautionary measures at the port and has taken all the necessary steps to ensure the protection of vulnerable groups among its staff. I would like to take this opportunity to particularly thank the team of DP World Limassol for their commitment and professionalism during this challenging period. I would also like to thank our whole stakeholder community as we all come together and support each other in these challenging circumstances that we are all operating under. I am confident that by working together we can overcome this.”

 

Coronavirus brings super-yachts to Cyprus

Some of the biggest, most luxurious, worth tens even hundreds millions of euros, yachts from around the world have arrived in Cyprus over the past few days, due to the coronavirus and the circulation problems it has created. On Thursday, two of the world’s most well-known yachts owned by multi-millionaires arrived in Cyprus. The “Serena” super yacht worth about €300m owned by Yuri Scheffler, widely known as the “king of vodka” and owner of the well-known vodka brand “Stolichnaya”. It is one of the 10 biggest and most luxurious yachts in the world, that was previously owned by Saudy prince Mohammed Bin Salman, while it is Bill Gates’ favourite yacht as he has recently rented it for €5m per week for his family vacation. The second super-yacht that arrived yesterday along with the first one, is the biggest yacht in the world made from aluminium, the luxurious Silver Fast. It should be noted that two of the yachts are accompanied by a special safety boat. Only the crew members are on board of the yachts. Due to the emergency restrictive measures, no crew member was allowed to disembark, while they moored at the Limassol anchorage. According to Phileleftheros’ sources, the reason they came to Cyprus is twofold – to refuel as well as replace crew members when possible. The yachts have ordered luxury items and other necessary items, which are economically significant and constitute a liquidity injection for the market. Moreover, Putin’s “Olympia” is still at the special dock of the Larnaca port, which is now its base, and is currently being refuelled so that it can leave for Sotchi, Russia. It should be noted that the abovementioned super yachts are almost three times longer than the 55-metre Olympia. The luxury super yachts that have arrived or will arrive to Cyprus, expect the first measures to restart their routes and crew member replacements. Even if the yachts’ owners charter flights to come on board, they will not be able to bring in crew members or if this is allowed they will need to be quarantined for 14 days. This is why they are expecting a change in conditions. Other ships on the anchorage have the same problem, as well as the Israeli and Egyptian drilling support ships. At the same time, Cyprus’ supply operations, such as exports, from the Limassol and Larnaca ports are continuing as normal, apart from certain delays due to reduced staff and measures on the whole supply chain.

 

Port operations continue as normal

Eurogate Container Terminal, operator of the container terminal at the Limassol port ensures the public and the traders that the terminal’s operation continues as normal, despites the international and local difficulties due to the spread of the Coronavirus COVID-19. The company has taken measures to protect its staff and associates in order to resume the smooth conduct of operations at the terminal to the benefit of the Cyprus economy. It should be noted that Eurogate is in contact communication with the Cyprus Ports Authority, the Transport Ministry and all the relevant bodies, implementing the government’s measures.

 

Seafarer with Covid-19 came from a platform support vessel

The second seafarer to be infected with Covid-19 is a crew member of a platform support vessel supporting field drilling, who is now receiving treatment in Cyprus. The ship is based in Larnaca port and in its latest arrival it had informed the authorities about a crew member with symptoms. After the necessary measures were taken, the seafarer was transported to a clinic, where he is being monitored. It should be noted that in the early hours of Saturday, a second cruise ship moored on the Limassol anchorage “Jewel of the Seas” by Royal Caribbean, coming from Dubai and heading to Piraeus port. The cruise ship requested permit to anchor at the Limassol port for three hours to refuel, from a distance. The “Jewel of the Seas” departed in the morning to go to Piraeus.

 

Large-scale projects on ice due to coronavirus

Coronavirus has pulled the breaks on several major projects under construction, such as the City of Dreams Mediterranean casino, marinas, shopping malls and towers. The completion of major projects will be delayed due to the decree stipulating the suspension of works at all construction sites. Certainly, the project that stands out and is one of the most anticipated projects, the City of Dreams Mediterranean casino in Limassol. This huge project, possibly Cyprus’ largest construction site ever, has "turned off the machines" until the decree is lifted. It is worth noting that from the beginning of 2020, in a specially designed page on the project website, photos were presented on the progress of the works. As noted by the joint venture, Melco supports the Government of Cyprus and the actions it has implemented to curb the spread of COVID-19. While the construction works were on track so that the ICR could open at the end of 2021, the suspension of works will undoubtedly have an impact on the opening date. Melco will re-evaluate the completion date of the ICR after works restart at the construction site. Moreover, two of the biggest projects that were ongoing were the Ayia Napa and Paralimni marinas. As it comes to the Ayia Napa marina, whose implementation is in advanced stage, Stavros Karamontanis CEO of the owner company told Insider that the problems started since the beginning of the year, with delays in the delivery of basic materials and supplies. He added that they are in constant communication with the buyers, and they are ready to explain the situation as it has been shaped so far. He noted that the development will affect the company’s cashflow since the way the contracts provided buyers to pay in instalments, according to the progress of the projects in each unit. “Both we and our partner Naguib Sawiris, we will do anything we can so that our customers are affected as little as possible”, he Karamontanis noted, adding that their ultimate goal is to have an open and honest exchange with their customers. As it comes to the Paralimni marina, the CEO of the company Anthoulis Kountouris commented that even if the groundworks hadn’t already begun, obviously these developments will potentially cause delays in the implementation of the projects.

 

Cyprus Shipping Chamber supports-navigates Cyprus through crisis

The Cyprus Shipping Chamber is closely monitoring developments in relation to the spread of the COVID-19 virus both at a local and international level, adhering to the directives of the World Health Organisation and the Cyprus Government. According to a relevant announcement, the Chamber has implemented working from home arrangements for its employees, keeping its offices temporarily closed as of last week in accordance with the guidelines of the Cyprus government, aiming to contribute to the government’s efforts to prevent the virus from spreading any further and to protect the safety of its employees. Moreover, the member-companies of the Chamber are also contributing to the effort as they are also promoting working from home where possible, and they are fully adhering to the Government’s measures both for their personnel on land as well as personnel on board of ships. At the same time, they continue to provide high-value and high-standard services, transporting essential items to Cyprus, during these critical times.

 

Coronavirus and EastMed

Kathimerini reports that on the verge of a new economic crisis and as petroleum and gas prices have fallen dramatically, the big energy companies have reportedly started announcing huge cuts in their expenditure, as well as a freeze of their upcoming plans. Our own ExxonMobil, after seeing its shares drop to 17-year low, it has announced drastic cuts in expenditure. Other companies such as Chevron Equinor, Gulf Keystone, Kosmos Energy, Oil Search, Premier Oil, Santos, Saudi Aramco and Tul low Oil have made relevant announcements, while JP Morgan predicts that especially the Italian ENI will be in a very difficult position. The author says that one could say that the EastMed was found positive to the coronavirus.

 

Limassol Reborn' at Tel Aviv Tourism Exhibition

The new projects in Limassol and the comparative advantages of the region as a tourist destination were highlighted in a presentation organized by the Limassol Tourism Board (ETAL) in collaboration with the Tourism Deputy Ministry’s local office in Tel Aviv, in the context of IMTM 2020 expo. The presentations of Parklane Resort & Spa Limassol, Amara Hotel and City of Dreams Mediterranean, the first integrated Casino Resort in Cyprus impressed the tourism professionals who attended the event.

 

Large-scale projects on ice due to coronavirus

Coronavirus has pulled the breaks on several major projects under construction, such as the City of Dreams Mediterranean casino, marinas, shopping malls and towers. The completion of major projects will be delayed due to the decree stipulating the suspension of works at all construction sites. Certainly, the project that stands out and is one of the most anticipated projects, the City of Dreams Mediterranean casino in Limassol. This huge project, possibly Cyprus’ largest construction site ever, has "turned off the machines" until the decree is lifted. It is worth noting that from the beginning of 2020, in a specially designed page on the project website, photos were presented on the progress of the works. Indeed, the latest photos were posted on 20 March, and it is quite clear that there has been rapid progress in the works over the last quarter, as the building has already taken shape. To date, all important piling works have been completed, as have the hotel’s groundworks and substructure. Due to the current situation, the project’s deadline may be pushed back. As noted by the joint venture, Melco supports the Government of Cyprus and the actions it has implemented to curb the spread of COVID-19. They fully support and respect the government’s decision to temporarily suspend the construction of the Integrated Casino Resort (ICR) in the best interest of the community and their colleagues. While the construction works were on track so that the ICR could open at the end of 2021, the suspension will undoubtedly have an impact on the opening date. Melco will re-evaluate the completion date of the ICR after works restart at the construction site. Melco also noted that they remain committed to their investment in Cyprus and look forward to resuming the construction as soon as it is safe to do so. “We stand beside our local partners and the entire tourism industry in Cyprus who have prioritized the safety of their personnel and guests.”

 

16 new hotels are on the way

It is an undisputed fact that hotel accommodation is the heart of Cyprus tourism industry and the national economy. Today, more than 800 hotel units with over 80 thousand beds operate in Cyprus according to the latest available data from the Deputy Ministry of Tourism. Next year, sixteen new hotels with over four thousand beds will be added to Limassol, significantly enhancing the local tourism experience. Over a thousand beds are coming soon to Limassol. Another hotel will be added to the current 60 Limassol hotels, the luxurious five-star City of Dreams Mediterranean at Zakaki, with a construction cost of around €550 million. It will feature a sixteen-story Five-Star hotel with 500 guest rooms and suites as well as MICE (Meetings, Incentives, Conventions, and Exhibitions) facilities covering 9,600 sq. meters. The gaming area covers a total 7,500 sq. meters and will include over 100 tables and 1,000 state-of-the-art gaming machines. Its interior design is based on Melco’s international luxury standards, personalised specifically for the Cyprus ICR, while the exterior design features distinct Mediterranean influences. The hotel will offer 1050 beds so it will add to the existing city beds, that will go from 10,840 to 11,890.

 

Coronavirus brings super-yachts to Cyprus

Some of the biggest, most luxurious, worth tens even hundreds millions of euros, yachts from around the world have arrived in Cyprus over the past few days, due to the coronavirus and the circulation problems it has created. On Thursday, two of the world’s most well-known yachts owned by multi-millionaires arrived in Cyprus. The “Serena” super yacht worth about €300m owned by Yuri Scheffler, widely known as the “king of vodka” and owner of the well-known vodka brand “Stolichnaya”. It is one of the 10 biggest and most luxurious yachts in the world, that was previously owned by Saudy prince Mohammed Bin Salman, while it is Bill Gates’ favourite yacht as he has recently rented it for €5m per week for his family vacation. The second super-yacht that arrived yesterday along with the first one, is the biggest yacht in the world made from aluminium, the luxurious Silver Fast. It should be noted that two of the yachts are accompanied by a special safety boat. Only the crew members are on board of the yachts. Due to the emergency restrictive measures, no crew member was allowed to disembark, while they moored at the Limassol anchorage. According to Phileleftheros’ sources, the reason they came to Cyprus is twofold – to refuel as well as replace crew members when possible. The yachts have ordered luxury items and other necessary items, which are economically significant and constitute a liquidity injection for the market. Moreover, Putin’s “Olympia” is still at the special dock of the Larnaca port, which is now its base, and is currently being refuelled so that it can leave for Sotchi, Russia. It should be noted that the abovementioned super yachts are almost three times longer than the 55-metre Olympia. The luxury super yachts that have arrived or will arrive to Cyprus, expect the first measures to restart their routes and crew member replacements. Even if the yachts’ owners charter flights to come on board, they will not be able to bring in crew members or if this is allowed they will need to be quarantined for 14 days. This is why they are expecting a change in conditions. Other ships on the anchorage have the same problem, as well as the Israeli and Egyptian drilling support ships. At the same time, Cyprus’ supply operations, such as exports, from the Limassol and Larnaca ports are continuing as normal, apart from certain delays due to reduced staff and measures on the whole supply chain.

 

Endless smuggling of tobacco products and firecrackers

Despite the checkpoint closures in the districts of Larnaca and Famagusta (Pergamos, Strovilia and Deryneia), tobacco products from the occupied areas did not cease to be sold in known- unknown points of sale in the two districts. This leads the competent authorities of the Republic to conclude that those responsible on both sides, continue to cooperate with one another in carrying out the illegal activity. Which, according to estimates, has become even more lucrative after the closure of the checkpoints, which led to hundreds of G/Cs losing their ability to purchase cigarettes, tobacco and other products from the occupied areas. According to Phileleftheros’ sources, tobacco prices in the occupied areas are 30% of the respective prices in the areas controlled by the Republic, with several G/Cs in the area trying to purchase these products through Pyla. They ensure the authorisation for movement for shopping and supplies, but with the ultimate goal of purchasing Turkish cigarette packs or roll-your-own tobacco packs.

 

Backed into a corner

The Ersin Tatar “government” is now backed into a corner regarding the financial situation in the occupied areas, something that is easily inferred seeing how that in order for Tatar to cope with the salaries of “civil servants” during the coronavirus, he had to carry out wage cuts of up to 25% for a three-month period.  The Tatar-Ozersay government is already under a lot of pressure after announcing the economic support package last week, both by parties, as well as unions and workers. On 25 March, Ersin Tatar announced the economic support package for the occupied areas, which lasts for 3 months and consists of 33 measures. The package includes cuts and austerity measures and on the other hand some facilities and benefits to employers and employees. According to estimations, through this package, the “government” set a target of saving €214m. Ersin Tatar described the measures as inevitable as said the “state’s” revenue is expected to drop dramatically in the upcoming period and called on everyone to be ready to make sacrifices. Specifically, one of his measures includes “tax” increase for tobacco products and alcoholic beverages.