Cyprus businesses increasing prices – why? Because it’s too quiet

 If Cyprus is to survive and bring back “lost” tourists this year, local business owners need to rethink their pricing and two-tier pricing – i.e. prices for locals and another set for foreigners.
Like many British expats on the island, I have seen a huge increase in bars and restaurants increasing their prices this spring and summer because they are quiet.

Now forgive me for being daft, but surely when your business is suffering the last thing you do is increase the cost to consumers!

An example is in my local area, Erimi, Limassol. There are two bars owned by the same people that last year sold Keo and Carlsberg at €2.50 and €2.60 a large bottle.

Now this year they are selling the same drink for €3.00 and €3.20, with the excuse when asked that it is because trade is so low we have to increase our prices.

It doesn’t stop with just drinks, many restaurants have increased meal prices this year. To make it even worse, a lot of them have just crossed out the old price and put the increased price next to it.

So if you are a holidaymaker arriving in Cyprus this year and you find your beer has increased by €1.00 a bottle and food up €2 or €3 an item, would you come back next year when the exchange rate is poor?

The cost of beer per bottle has not increased and businesses already make a very good profit on what they cost. There are places around that have not got greedy or increased prices, like Michael’s in Erimi that still sell the same drink for €2.00 a bottle.

To all business owners – if your business is suffering this year, you need to bring people back, reduce your prices to at least what they were last year and you will find more people come back again and again for more. More people in the door is better than increasing the costs for a few, simple business fact.

Erimi resident