Updates from Cyprus
A total number of 139.981 residents of Cyprus returned from a trip abroad in December 2022, compared to 61.010 in the corresponding month last year, recording an increase of 129,4%. The main countries from which the residents of Cyprus returned in December 2022 were Greece with 33,4% and the United Kingdom with 16,7%.
Source: Republic of Cyprus, Ministry of Finance, Statistical Service
To boost Cyprus’ attractiveness as a destination for hiking and nature activities, the Tourism Deputy Ministry and the Forestry Department have renovated two forest shelters in Paphos for long-distance hikers.
From February, long-distance hiking enthusiasts will have two forest shelters to take cover or spend the night while adventure-seeking in the Paphos forest, in the Livadi old settlement.
Authorities have revamped the old forestry station and the Livadi elementary school into shelters offering hikers a place to take refuge in case of adverse weather conditions or to sleep over.
The two shelters are the first of their type in Cyprus.
Forest shelters offer protection from the elements of nature and therefore have a basic infrastructure for accommodation, but without providing additional services such as electricity and sleeping mattresses.
The shelters provide basic necessities such as water, a kitchen and a fireplace.
“There is no electricity, adding to the true remote experience of the shelters, but water can be heated through the boiler by using firewood.”
The Livadi forest shelters are located in an idyllic environment, far from human activities and accessible only on foot.
Long-distance hikers can cover the distance from Stavros tis Psokas to Livadi (about 15 kilometres) in daylight, where they can spend the night. The space is also suitable for stargazing.
The shelters are on the old path that connects Stavros tis Psokas river in the Paphos District with Livadi. Locals and forest rangers used it up until the mid-1950s.
It was currently rediscovered and cleared by the Forestry Department.
The department is working on clearing more hiking trails, which will offer enthusiasts the possibility for five to six-day forest hikes.
Paths to be opened will connect the village of Panayia, in Paphos, through Milikouri, all the way to Tylliria.
The new paths are part of the “Heartland of legends” campaign to boost the island’s seasonality, which entails a 3,000 kilometres route of authentic experiences which passes from the mountains to the rural and remote areas of Cyprus.
The Deputy Ministry of Tourism will be organising events for hikers to get acquainted with the trail and the location of the shelters.
A treasure hunt event will be held on 29 January, starting from the camping site at Stavros tis Psokas.
Hikers wanting to participate can send their applications through the Heartland of Legends online platform.
Those interested can access the Heartland of Legends platform for more information and accommodation reservations.
Source: The Financial Mirror
Equity markets are a little softer on Tuesday as investors await more earnings from the U.S. and closely monitor events in Davos.
Stocks have had a strong start to the year on the belief that interest rates may not go as high as feared and even move into reverse later in the year. While that is looking plausible in the U.S., it may not be the case in Europe where policymakers are seemingly still some way from considering the tightening cycle complete.
The ECB, for example, was very late to the party and could be at least three 50 basis point hikes away from the terminal rate which we could see around the middle of the year.
Inflation in the euro area declined last month, but core inflation is still on the rise which is why we’re continuing to see pushback to the idea of slower hikes and cuts this year. That narrative may change once the data moves in a more positive direction.
Pressure on BoE
In the UK, data remains quite troubling.
Labour market figures released Tuesday showed earnings growth accelerating to 6.4%, meaning while we’re still seeing negative changes in real terms, as far as the central bank will be concerned, they’re still far too high to be consistent with inflation returning to target.
And the longer it goes on, the more stubborn inflation will become. That should ensure the BoE continues tightening by 50 basis points next month, at which point we’ll get fresh economic projections.
Encouraging figures from China
The data from China overnight was broadly positive, even if it confirmed one of the slowest annual growth rates in decades. The economy ended on a stronger note despite the surge in Covid infections, as the leadership suddenly pivoted from a zero-tolerance approach to allowing it to run free.
That was expected to take a heavy toll on the economy, initially, but the figures for December from retail sales to industrial production and fixed asset investment suggest a much more modest hit.
That may offer hope that the opening months of the new year will not be as bad as initially feared.
Buoyed by China data
Oil prices are a little higher Tuesday after paring gains at the start of the week to remain near the highs of the last month, or so.
Brent crude has mostly traded between $76 and $86 since early December, but the mood appears to have become a little bit more bullish thanks to some promising economic data.
The prospect of a soft landing in the U.S. and a shallower economic hit in China from the Covid transition, not to mention a strong rebound, has driven the latest rebound in crude prices and the narrative on both of these doesn’t appear to be shifting. The China data overnight was a real positive, enabling Brent to reverse Monday’s declines.
Now it’s over to Davos and earnings season to get a look at how policymakers and business leaders perceive the latest developments, and whether companies are planning for tough conditions ahead.
Paring gains
Gold is paring gains for a second day as the dollar rebounds slightly and yields creep higher. Perhaps we’re just seeing some broader market profit-taking ahead of what could be another eventful week.
Gold briefly surpassed the upper end of what in recent years has been a tough trading zone between $1,880 and $1,920. That may be contributing to some profit-taking, with the next major test being $2,000, where gold briefly traded above last March.
Bitcoin bouncing back
Bitcoin seems to have been one of the big winners from the new year risk rally, after struggling for much support in recent months as a result of the FTX collapse.
Perhaps it’s making up for lost time as traders look to capitalise on such heavily discounted levels compared with the 2021 peak.
That said, it will take a lot more than a risk revival to get traders fully back on board.
Craig Erlam is Senior Market Analyst, UK & EMEA at OANDA
Opinions are the author’s, not necessarily that of OANDA Global Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.
Source: The Financial Mirror
Cyprus’ Economy and Competitiveness Council says government encouragement is required to enable more company acquisitions and mergers to improve productivity and robustness.
According to recommendations issued by the advisory body, the aim is to create larger companies that could take advantage of economies of scale and become more productive and competitive, attract specialised personnel, and become more resilient.
“The change of culture for the promotion of acquisitions and mergers, as well as the provision of incentives in this direction, are issues the government should consider”, the Council points out.
It said micro-firms and small firms face barriers to finance access and need help innovating or creating an integrated strategy to export and compete in the international economic environment.
Some 92.9% of businesses are classified as very small, with up to 9 employees and 6.1% as small businesses with less than 50 employees.
The Council recommends the creation of an integrated framework of support and culture change regarding the promotion of acquisitions and mergers through the establishment of an Office to inform and guide businesses that wish to consider the possibility.
It also proposes the modernisation of the legal framework for mergers and acquisitions of companies.
“The legal basis for mergers and acquisitions should be consistent with the modern spirit that exists in mature stock markets.”
Also recommended are tax relief and the elimination of burdens, applying tax incentives in the agricultural sector, and subsidies for agricultural equipment and machinery.
According to the proposal, tax reliefs will be applied to companies that employ up to 250 workers with an annual turnover that does not exceed €50 mln.
It also proposes the provision of specialised advisory services for companies intending to merge through the Advisory Services Plan of the Ministry of Energy, Trade and Industry and facilitating access to financing.
“Mergers and acquisitions in Cyprus are at very low levels, as most of the businesses are family run in traditional sectors – where there is no culture of mergers to expand businesses.
“The new Long-Term Strategy for the sustainable development of Cyprus proposes a new model until 2035 and sets as an important pillar the improvement of the competitiveness and productivity of Cypriot businesses and the shift towards exports through digitalisation and continuous training.
“Achieving this goal requires larger enterprise sizes that can respond to changing market conditions and survive in a globalised environment.”
Source: The Financial Mirror
People find the cost of sending parcels to be high, according to a survey conducted by the Office of Electronic Communications & Postal Regulations (OCECPR).
The survey, conducted from October to December, asked the opinion of 1002 people and 508 small and medium enterprises about using postal services.
Some 95% of people have used postal services in the last year, marking a slight increase of 2% compared to October 2021.
The use of postal services for receiving letters-documents and parcels is about four times more than for sending letters-documents and parcels.
Cypriots consider the cost of sending letters to be “reasonable”, but the cost of sending parcels does not offer value for money.
However, 75% of those asked did not compare the prices offered by the various providers, but 35% of SMEs did an analysis.
At the same time, most SMEs do not consider the fees of the Cyprus Post Office to be high, while 35% of businesses believe the fees of private providers are high.
And satisfaction rating from individuals and SMEs with receiving parcels from private postal providers is higher than for state-run Cyprus Post.
Individual satisfaction increased from 8.3 to 8.4 for private providers and 7.5 to 7.6 for Cyprus Post.
But SME satisfaction with receiving parcels from Cyprus Post has decreased compared to October 2021 from 7.5 to 7.2.
And citizens’ satisfaction has increased from 8.3 to 8.5 for private providers and 6.7 to 7.5 for Cyprus Post.
The survey indicates that more SMEs are using private postal providers to send parcels compared to October 2021.
It went up from 53% to 63%, while the percentage of those using Cyprus Post decreased from 47% to 44% due to reliability issues.
The main criteria for SMEs choosing a postal provider are delivery time (52%), ease of sending (35%), cost (32%) and delivery method (19%).
The average annual expenditure of SMEs for sending parcels and letters has decreased compared to October 2021 from €654 to €612 and €295 to €288, respectively.
SMEs use Cyprus Post once a week on average, while private providers are used 2.3 times weekly, increasing from twice a week in 2021.
The main postal providers used by SMEs to send parcels to their customers are GAP Akis Express (39%), ACS Courier (36%), Travel Express (19%) and DHL (9%).
Cyprus Post remains the main postal provider for letters (97%), while for parcels, the main postal providers are ACS Courier (61%), Cyprus Post (59%), GAP Akis Express (28%) and DHL (21%).
Cyprus Post is the main postal provider for sending letters (93%), while for sending parcels, the main postal providers are Cyprus Post (61%), ACS Courier (47%), GAP Akis Express (31%) ) and DHL (13%).
The average frequency of sending letters decreased from 21 times per year in October 2021 to 19 times in November 2022, while the average frequency of sending parcels increased slightly from 11.1 to 11.5 times per year.
Source: The Financial Mirror
Defence lawyers say a British man accused of killing his terminally ill wife was denied rights to a lawyer, an independent translation, and was not fit to be questioned.
The Paphos criminal court is now holding a trial within a trial to decide whether 75-year-old David Hunter was treated fairly while in police custody.
The voire dire challenge also concerns that no psychiatric examination was made of Hunter before he was interviewed, despite being vulnerable, including his age and mental condition after attempting to take his own life, said his lawyers.
Following the taking of the statement from Hunter by police, he was committed to a psychiatric hospital for 10 days.
The defence argues that he was in no fit state to be interviewed when he was and that this would have been the conclusion of a proper assessment had been carried out.
A paramedic who attended to Hunter was called to give evidence on Tuesday, and he was cross-examined. He confirmed that a psychiatrist should have seen Mr Hunter.
The final witness for the prosecution in the voire dire, a doctor, was not present, and the prosecution stated that he could not be present at any point this week because of healthcare shortages.
After the Judge threatened the issuance of a warrant, the prosecution spoke to the hospital and confirmed that the doctor would attend the next day.
The case was adjourned until Wednesday, when the final prosecution witness in the voire dire will give evidence, and then the defence evidence will be put before the court.
This case was delayed for the charge to be changed to manslaughter, but neither side could agree on the facts.
At Tuesday’s hearing, the court inquired whether the prosecution might consider such a change again but said that option is off the table.
Rights abused
In a written statement, lawyer Michael Polak of Justice Abroad argued that Hunter had his rights abused.
“In this case, once again, the authorities have taken a statement from a vulnerable foreign national without the presence of a lawyer.
“It is especially concerning here as that statement was taken whilst Mr Hunter was in a hospital bed, and immediately following the taking of that statement, he was committed to a psychiatric hospital.
“It is hard to see how Mr Hunter was in a fit state to be interviewed at the time that he was.
“Had a psychiatric assessment been carried out on Mr Hunter, as should happen in cases such as this, they would have found that he was unfit, and the interview should have been delayed until he was in a position to be interviewed and to properly understand his right to a lawyer and to remain silent, and the consequences of forgoing these rights.”
Hunter, 75, is facing a murder charge in the death of his wife, Janice, in December 2021.
His defence lawyers had asked the Attorney General to reduce the charges to assisted suicide.
Attorney General George Savvides had a change of heart, arguing that accepting the argument of assisted suicide could set a precedent for murder cases in the future.
His defence lawyers have been arguing that Hunter acted on his wife’s wishes, whom it says was ill with terminal blood cancer.
Hunter himself tried to take his own life after killing his wife.
David and Janice Hunter, teenage sweethearts, had lived together for over 50 years when, just before Christmas, the 75-year-old allegedly urged her husband to end what had become a life of extreme suffering due to advanced leukaemia.
Hunter said he finally succumbed to his wife’s wishes, using his hands to block her air passages and smother her to death in the sitting room of the couple’s rented maisonette in Tremithousa, Paphos.
He then attempted to take his own life by overdosing on prescription pills and alcohol before being found by police.
Source: The Financial Mirror
Despite Cyprus losing 800,000 Russian and Ukrainian tourists last year due to the war, visitor arrivals spiked 65% in 2022 after COVID-19 travel rules were dropped.
Due to Russia’s invasion of Ukraine and the ensuing EU sanctions, Cyprus was deprived of 800,000 arrivals, but tourism recovered to around 80% of pre-pandemic levels.
Cyprus benefited from Europeans wanting to book a summer holiday, with UK arrivals leading the way.
The European Union markets helped to cover the lost ground with record arrivals from France, Denmark, Poland, and Hungary.
The island is around 700,000 tourists short of the record year 2019, when arrivals peaked at 3.9 million.
In 2022, tourist arrivals totalled 3,201,080 from 1,936,931 in the previous, 631,609 in 2020 and 3,976,777 in pre-COVID 2019, announced the Statistical Service.
In December 2022 alone, the tourist arrivals reached 110,041, from 96,928 in December 2021, recording an increase of 13.5%.
Arrivals from the United Kingdom were the main source of tourism for December, with a share of 24.3% (26,708), followed by Israel with 17.1% (18,801), Greece with 11% (12,055), Poland with 8.5% (9,316) and Germany with 4.5% (4,976).
Tourism is a key driver of the economy, contributing around 15% of Cyprus’ GDP.
Pre-coronavirus 2019 was also a record year for tourism revenue, with spending at €2.68 bln.
Source: The Financial Mirror