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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.
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.