Cyprus Economy Boost for Tourism and Construction

Description:

Measures are in the process of being announced by President Christofias to combat the looming economic recession in Cyprus.

An additional estimated €300 million will be used to boost the Tourism and Construction industry.
 

There is good news for Hoteliers as the VAT on accommodation will be reduced from 8% to 5% and overnight fees that the local authorities take will be totally abolished.
 

Airport landing surcharges will also see reductions to encourage air travel to Cyprus.

The construction industry has projects in the pipeline to build new schools and renovate older schools. Also the construction of new refugee housing has been proposed.
 

First time home buyers would also benefit and low income families below €40,000 will be eligible for lower interest rates and loan repayments up to 20 years.

 
There was also a repeated call to the banks to lower interest rates which will help those borrowing money in the tight times ahead.

 
President Christofias noted "The Cyprus economy is expected to be affected to a relatively smaller extent, especially compared to Eurozone countries".