Business Profile
Economy
The southern, Greek-Cypriot region has a strong agricultural sector, producing fruit and vegetables, potatoes, barley, citrus fruit and grapes for export. However, the south’s principal exports are clothing, footwear and textiles, which dominate the region’s light manufacturing industry. Tourism is the main component of the southern service economy but, in recent years, financial services – including ‘offshore’ enterprises – have also assumed an important role. The UK’s sovereign military bases on the southern coast and near the partition boundary are a major source of revenue for the south. Economic development of the northern occupied part of Cyprus has been severely limited by lack of diplomatic recognition and it continues to rely heavily on economic support from Turkey. The profile of the northern occupied part of Cyprus's agricultural sector is similar to that of the south; manufacturing is relatively insignificant; tourism relies heavily on visitors from the Turkish mainland. Both parts of the island rely on imported raw fuels for their energy supplies. The decision of the north to allow visits across the partition may presage the development of a cross-border economy, but this may take some time. This concession on the part of the north was driven mainly by the acceptance of the south into the European Union in 2004, as part of the wave of new entrants which brought the EU up to 25 members. Turkey, which ultimately controls the fate of the northern part of Cyprus, is an aspirant member of the EU, and a solution to the present division of the island is an essential precursor to their own accession. The EU accounts for the bulk of southern Cyprus trade: Lebanon, Egypt, the Gulf States and Libya are the other trading partners.
Commercial Information
The following organisation can offer advice: Cyprus Chamber of Commerce and Industry, 38 Grivas Digenis Avenue, Chamber Building, PO Box 21455, 1509 Nicosia (tel: (22) 889 800; fax: (22) 669 048; e-mail: chamber@ccci.org.cy; website: www.ccci.org.cy).
Conferences/Conventions
Many hotels have facilities; seating for up to 1200 people is available. Nicosia is a popular destination for budget-priced conferences and has a number of modern facilities. Advice can be obtained from the Cyprus Tourism Organisation in London (see Contact Addresses section).
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