STRONGER trade ties with Iran mean that we will see the first tourists arriving from Iran in March, Commerce, Industry and Tourism Minister Antonis Paschalides said yesterday.
An agreement with an Iranian carrier was reached during the Minister’s recent visit to Tehran, and Paschalides announced that the first charter flights are due to arrive around March 21, when Iran celebrates New Year. Asked about the numbers involved, he said “it will probably only be between 100 and 1,000. But the point is that this is a start.”
Paschalides was speaking at a press conference to promote the joint action plan drawn up by his Ministry and the Cyprus Chamber of Commerce and Industry (KEVE), to strengthen Cyprus’ economy by promoting it abroad.
He explained that the deal with Iran on tourism was in addition to a bilateral agreement on the protection of investments, and that interest on the Iranian side is also focused on investment in land, holiday property, setting up businesses and joint ventures with local businessmen. In view of this, the government would be “willing to take a positive view on the question of facilitating visas for people to stay in Cyprus, on condition that the value of the property purchased exceeds a certain amount and that the person’s income originates abroad.”
KEVE General Secretary Panayiotis Loizides pointed out that according to his own sources, three Iranian companies are already using Cyprus as a base for their investment activity in the European Union.
“Where they lead, others will follow”, he said.
More widely, KEVE President Manthos Mavromatis outlined the intention to organise 27 business missions in 2009 to 18 countries of Eastern Europe, the Middle East, the Arabian Gulf and elsewhere, and to help Cypriot businesses participate in 21 trade fairs and expos all over the world. By comparison, KEVE organised six business missions abroad in 2008.
As well as working closely with the Commerce, Industry and Tourism Ministry, KEVE is also co-ordinating its efforts with the Cyprus Investment Promotion Agency (CIPA) and the Cyprus Tourism Organisation (CTO).
He said: “This far-reaching plan of action shows the determination of both the Commerce, Industry and Tourism Ministry and KEVE is to respond dynamically to the effects of the international economic crisis.” He added: “KEVE gives primary importance to its mission to promote Cyprus as a regional centre providing professional services, an attractive destination for investment opportunities and a reliable banking and financial system for attracting deposits.”
Mavromatis drew special attention to two target markets. First of all, the countries of the Middle East, the Gulf and Iran, where the aim is to strengthen trade dealings, co-operation in realising their ambitious infrastructure projects and joint ventures in investment.
The second target market is Russia and countries like Ukraine, Belorussia, Moldavia and Kazakhstan. Four missions to Russia are planned this year, taking in Moscow, Saint Petersburg and other cities like Sochi – the venue of the 2014 Winter Olympics.
“These countries may have been affected significantly by the global crisis, but we should still explore them further in order to assess the opportunities that will appear when the crisis is over,” Mavromatis added.
There is certainly a question-mark over Russia’s capacity as a short-term source of investment. According to recent IMF figures (World Economic Outlook, January 2009), Russia had a GDP growth rate of 8.1 per cent in 2007 and 6.2 per cent in 2008, but is projected to fall into recession (0.7 per cent negative growth) in 2009 and recover slightly (1.3 per cent growth) in 2010. Mavromatis expressed his confidence that Russia is likely to recover relatively quickly from the world crisis, and this will have a positive spill-over effect on its neighbours.
