Keve pleased with new govt measures, Oev asks for more to support tourism sector

The Cyprus chamber of commerce and industry (Keve) on Thursday expressed its satisfaction with the package of eight measures announced by the government to support businesses and consumers in light of rising costs amid the ongoing conflict in the Middle East.

However, the employers’ and industrialists’ federation (Oev) called on the government to do more to support the tourism industry.

The former said that “supporting the tourism sector is of crucial importance, given that it constitutes one of the main pillars of the Cypriot economy and is already affected by geopolitical developments”.

With regard to fuel and electricity tax relief offered to consumers, it said that “these contribute to containing the cost of living and maintaining purchasing power”.

This, it said, “will also have a positive impact on the market”.

“Keve underlines the importance of the timely and flexible implementation of the measures, so as to ensure their effectiveness. At the same time, it expresses its readiness to cooperate closely with the government and all competent bodies, to monitor the situation and promote interventions where deemed necessary,” it said.

It added, “in a difficult situation, supporting entrepreneurship is a basic prerequisite for maintaining economic stability and social cohesion”.

Oev, however, said that while the measures constitute a step “in the right direction”, more could be done.

“The scope of support for the tourism sector, at first glance, does not contribute substantially in light of the magnitude of the consequences suffered by businesses in the sector, nor the challenges they have to manage,” it said.

It said that “the forecasts for the development of the tourist year are not particularly encouraging”, and said that as such, “a continuous assessment of the situation is required”.

To this end, it said that the government must be ready “for the planning and announcement of targeted and additional measures for the broader tourism sector”, which it said must include hotels, catering companies, travel agencies, theme parks, and other businesses.

Additionally, it said that the “communication strategy” of regularly and publicly declaring Cyprus to be a “safe and reliable European destination for holidays, investments, and business activities” must be “continued and intensified”.

“The measures announced can contribute to limiting the effects of the crisis, but the real recovery of the economy requires a quick return to full normality,” it said.

Regarding measures offered for individual consumers, it said that they are “in general, also in the right direction”, and that “their effectiveness will be evident from the duration of the broader situation”.