Plan to invigorate tourism investment

INVITATIONS will be issued from Monday for investment in the tourism sector following the launch yesterday of a package of incentives worth €13 million.

The incentives package, which will use some of the EU structural funds, was launched by the Cyprus Tourism Organisation (CTO) and the Minister of Commerce Antonis Paschalides.

The €13 million will be distributed in two parts. Over €5 million is being offered to hoteliers to upgrade, and the remainder to local or foreign investors for project that will enhance Cyprus tourism.

The CTO estimates that if the offers are taken up, it could stimulate a total investment in the tourism sector of €55 million.

The rules stipulate a minimum and maximum investment and the amount of incentive that will be given based on those figures.

For instance someone wanting to create a theme park with a minimum investment of €5 million and a maximum of €20 million could receive as much as €1.5 million as an incentive.

The grants will represent between 10 per cent and 35 per cent the cost of the project.

The period for applications will remain open until the end of March next year.

“The aim is twofold,” said Minister Paschalides.

“On the one hand, it will enrich and diversify tourism by developing new products, such as theme parks, conference centres, health tourism and thematic museums. On the other hand it will also assist in the modernisation and upgrading of existing tourist accommodation.”

The starting date for applications is Monday and will end on March 31 next year.

“The implementation of the plan is evidence that the CTO vigorously pursue, quality and diversification of the tourism product,” said CTO Director General Phoebe Katsouri.

She also said the programme would contribute to mitigating the effects of the global crisis on the island’s tourism.

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