SOLE TRADERS and small British operated companies in Cyprus, are already feeling the strain of the global financial crisis.
Paphos has the largest population of retired ex pats on the island, and the effects of the poor exchange rate of sterling to the euro, is already causing concern for British-run businesses, reliant on this sector of the population for their income.
Stuart Maskell moved to Paphos from the UK, with his wife Mandy, and set up, Elite Home Improvements, a one-man operation.
“I folded my company in the UK to come out here, and I brought with me years of experience gained in the UK,” he said.
After working for a Cypriot company for a short period, the 55-year-old became disheartened with the work ethic, and decided to branch out as a sole trader.
“Most of my customers are British, around the 90 per cent, although I have done work for Russians. I think you have to be knowledgeable about everything if you want to succeed in this business, and I can turn my hand to almost anything,” he added.
By trade, Maskell is a woodworker, but is also proficient at double-glazing, doorframes, tiling, decorating, bricklaying, and kitchen re-fits.
“You’ve got to try it all especially during harder times,” he added.
” Last year I was consistently busy all year, but the global economic shift is defiantly affected me already.”
Maskell said that the months of January and February were always quiet in the building trade, even in the UK. But he said that the added problem for the British in Paphos was not having money to spend.
“I’m going back to regular clients and I still have the work,” he said,” But Brits who are coming over for a few weeks to do up their places are becoming very confused about the prices.”
This had much to do with Cyprus joining the euro given that Britons nearly always convert the prices back into sterling.
“It’s confusing for them, and they’re shocked at how expensive everything is,” said Maskell.
He believes business is at least a third down compared with the same period last year.
“I had three telephone calls a week minimum last year, which mostly led to new clients and jobs. But, since the start of this year, I’ve probably only had a hand full of new enquiries,” he said.
Maskell is taking measures to improve areas of his one-man service.
“ I’m taking pictures of jobs before and after, and getting together a portfolio. These extra efforts really help overall. I think we will have two years of this slowdown, and the Cypriots don’t realise what’s coming. Maybe the Brits won’t even come back when the exchange rate climbs, after all Cyprus has become a very expensive destination,” he said.
“I will survive though, and I wouldn’t want to go back and live in the UK. As a lot of the Brits are saying at the moment, I would rather be skint and living in the sun, than skint and living in cold and miserable Britain. You can walk along the beach and enjoy a sunset if you can’t afford going out. The views don’t cost anything.”
Chris Wood, of ‘C and M services’ has been in Cyprus for nearly two years, and moved here after being made redundant from his job as an HGV driver in the UK.
“I got bored with doing nothing, and I set up the garden and household maintenance company with my partner around eighteen months ago. He’s gone back for personal reasons, but I’m still very busy with the garden side,” he said.
Wood, 50, lives in Peyia, and said a number of his friends hade returned to the UK, because their pensions had lost so much value due to the poor exchange rate.
“I should imagine we haven’t seen the worst of the financial crisis yet, but we like it here and will stay.”
He said he was mainly being kept busy by ensuring gardens are tidy and trim, and although there weren’t as many new clients, he still had his regulars.
Nick White set up ‘Nick’s maintenance service’ in Paphos around three years ago.
He and his two employees are British trained and qualifed electricians and plumbers,covering many areas of expertise.
“I came out here for all the usual reasons; I was fed up with the system and the weather in the UK,” he said.
White had previously holidayed in Cyprus and now has a business, which covers the Paphos district.
“I’m 41- years- old, and have fifteen years of experience in my trade. I would say that my turnover has increased recently, but the jobs have changed.”
He said last year they were installing Jacuzzis and doing bathroom refits, but were now getting more repair jobs. White and his men attend to around twenty-four customer visits a day.
“We’re mending things when they’re going wrong. For example all our jobs today have been repairing washing machines, dishwashers, central heating and emersion heaters.,” he said.
He said people don’t have the money to spend anymore, and are not buying extras.
White said he expects to ride out the crisis and says he is now ‘recession proof.’
“We’ve taken steps to beat the recession;” he said, “We’ve reduced our overheads and started to take credit card payments. These are certainly beefing up our takings. In addition, our website generates interest and we have also expanded the area which we cover.”
Despite taking these measures White said,” I don’t think we’ve seen anything yet though, and I think the financial crisis will get a lot worse.”
