An interesting Report – Daily Mail

Aug 19, 2020

The Daily Mail (UK) published a most interesting Report on the 11/7/2020 under the heading Escape, regarding the Britons holidays in Europe, giving a general report and price charges in the various favorite European holiday destinations. It reports that the cost of a week’s holiday can be as low as ₤100 p.p. including the flight cost (!!!) – Hard to Believe.

The report on Cyprus refers to two different areas, that of Limassol reporting that prices have gone up (doubled!!!), whereas other than Limassol prices are not so much reduced as expected (our own confirmation).

It classifies Cyprus as a low risk destination (due to virus), whereas Greece as the safest in Europe.

Based on the report of Daily Mail, we provide a table of comparative cost.

Comparable prices of Tourist areas, competitive to Cyprus – €stg.

                             Hotels            Cappuccino        Lager          Glass White Wine         1lt. water        3-course Dinner/person+1 bottle of wine

CROATIA             10% off               £2.75               £1.20                   £4.00                      £0.90                                    £42.00
PURTUGAL         25% off               £1.34               £2.24               £4.47/bottle                £0.51                                    £31.00
FRANCE                N/A                   £3.15               £5.00                   £6.30                      £3.60                                    £42.50
ITALY Rimini       20%+ off               N/A                 £2.00                   £2.00                       N/A                                  €12 -no wine
GREECE               N/A                   £1.80                £1.40                  £2.70                      £0.50                                    £27.50
MALTA                   N/A                   £1.80                £1.40                  £2.25                      £1.62                                    £32.50
TURKEY                N/A                   £2.50               £1.40               £4.15/bottle                £0.12                            Starts from £12.50

CYPRUS             20% off               £3.15                £1.98                £3.60                        £0.81                                  £18.00*
                        on average,
                  not for 4-5-star rating

*In tourist areas much less out of the tourist regions.

Based on the report we note that it misses our major asset, that Cyprus offers those who have suffered the virus in the island, the Government of Cyprus will bear the cost of care and accommodation at no cost to the holiday maker. We believe that our competitors do not offer this. Also, the report offers no mention on personal security and family living quality and the widely spoken English language, the driving on the “right side” of the roadσ etc.

What we are considering here also is the hotel charges for locals which are discounted in the 1-3-star hotels (be it 20% less) than the pre-virus situation, although the 4+5-star units may offer a maximum 10% discount. Our hoteliers in general although nowadays depend to a large extent on local holiday makers, they seem that their charges are “as usual”. Perhaps their thinking is, “wait and see when the British market revives” (August 2020) and hopefully the Russians come (expected 9/2020 if).

The hoteliers take a big risk and local hoteliers have not our sympathy on this. They got a lot of financial support from the Government; over the last 3 years they were doing extremely well (as we did the rest of us) the Government pays for promotion etc. and we are at the stage we are. Even now with the virus effects they get hefty subsidies 60%+ for the payroll and other tax incentives, postponement of a debt instalments etc.

One hotelier we have interviewed said that “we are keeping all our staff and we know that we are losing, but the staff was with us during the good times we cannot let anyone go”. Well done, but this is a rare approach from hoteliers.

A kiosk on the beach, run by a hotel, who is selling juices and coffees, the waiter there told us that “today I have received €8.0 for the whole day, but my salary is far more. I thank the management supporting me”. Can you get more loyal staff after this? We expect that such hoteliers will not suffer due to the lack of staff when better times come and the others who have a short sight will bear a loss and staff problems in future.

Another interesting article was published by the German magazine Deutsche Welle which reports that retirees from Germany stand a lot to gain in taxation terms, due to the difference in taxation between Greece and Germany. Greece has introduced a tax incentive regarding foreign retirees who retire permanently in Greece in that they will be charged 7% only for the first 10 years for all their income worldwide.

It is an attraction, but not as good as Cyprus, which offers to foreign people provided they are tax residents in Cyprus (over 183 days p.a. to live here) – However if a foreigner employee resides 60 days during a whole year and he resides in Cyprus as such or he is an employee of a Co having business in Cyprus and subject to income tax, the Cyprus taxation system is most attractive and less than Greece which does not provide such a scheme, whereas foreign pensions in Cyprus are taxed only at 5%.

Not a comprehensive report by any means, but for the Ministry of Tourism to note how other countries are promoted in this “thin” tourist market. Get our own (Cyprus) international journalists to write up in the most popular foreign newspapers in countries that we aim to attract tourists and real estate purchasers.

You do appreciate that such reports on tourism has its effects on real estate demand, since it reflects also the cost of living for permanent/holiday home owners, whereas untapped markets such as Germany and others, such as the low countries, Poland etc. may not be aware what we have to offer.

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