FOLLOWING an extraordinary session of the Council of Ministers, President Demetris Christofias announced new measures to boost the Cyprus economy. At an estimated cost of 300 million Euro, the measures are targeted at helping the ailing property construction and tourism sectors.
To assist the construction industry President Christofias announced a number of measures. These include a new loan plan for low and middle income families (see Low cost property developments in Cyprus), the building of new refugee estates, projects for social care and the construction and repair of school buildings. The cost of these measures will be around 245 million Euro.
To help the tourist industry, the President announced measures totalling 51 million Euro. These include the abolition of the overnight stay fees that hoteliers pay to the local authorities, the lowering of aircraft landing charges, a reduction in the rate of VAT from 8% to 5% for overnight hotel accommodation and the implementation of a plan designed to strengthen local tourism.