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Financial Mirror (Cyprus) - - FRONT PAGE -

De­spite calls to lesser the bur­den on the cost of living al­lowance, of­fi­cials said there is no need to change the con­sumer price in­dex weight­ing, while the off­shore sec­tor is wor­ried that EU ac­ces­sion could spell their end, and in tourism, a record 85,000 vis­i­tors are ex­pected fro Rus­sia this year, ac­cord­ing to the Cyprus Fi­nan­cial Mir­ror is­sue 102, on March 15, 1995.


se­nior gov­ern­ment

of­fi­cial has dis­missed calls to change the way the con­sumer price in­dex (CPI) is cal­cu­lated so as to al­le­vi­ate the bur­den from the in­fla­tion-based cost of living al­lowance that keeps on hik­ing wages. Evros Deme­tri­ades, Direc­tor of Statis­tics, said em­ploy­ers be­lieve loss in com­pet­i­tive­ness is due mainly to ris­ing labour costs while unions claim the loss is due to slow growth based on lack of in­vest­ments in new tech­nol­ogy by em­ploy­ers.

The dy­namic growth of the off­shore sec­tor may come to an abrupt halt if the gov­ern­ment makes changes to the pre­vail­ing tax leg­is­la­tion in view of the start of Cyprus-EU ac­ces­sion talks, said John Con­nell, pres­i­dent of the Cyprus Off­shore En­ter­prises As­so­ci­a­tion (COEA). He said that one of the main is­sues will be tax and leg­is­la­tion for off­shore com­pa­nies, de­spite pres­sure from Brussels.

Cyprus has be­come a house­hold name among Rus­sians and 85,000 are ex­pected to visit the is­land this year, ac­cord­ing to Aeroflot manager Alexei Eliseev. How­ever, he said that re­cent talks of 100,000 Rus­sian tourists for this year was too op­ti­mistic.

More than 200,000 Ger­man tourists are ex­pected to visit this year, CTO Direc­tor Phryne Michaelides said on her re­turn from the ITB Ber­lin tourism fair, as Cyprus tried to di­ver­sify away from the Bri­tish mar­ket when Best Leisure col­lapsed, hav­ing han­dled about 500,000 hol­i­day­mak­ers alone.

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