A whole raft of problems is affecting this country, and there are conflicting views as to what to do for the best. The root of the problem is that an enormous proportion of Cyprus’ GDP (35% and possibly more) is generated by tourism and hospitality, and the tourists are not coming in any numbers, and are unlikely to do so until the virus dies out, or a vaccine or treatment is proven to work.
This summer season has been a disaster, and the unemployment and hardship felt by the people who work in hospitality is obvious and very distressing. There has been some support for workers who have been laid off, and who have lost their jobs. The Employment Minister fears unemployment will grow rapidly in the autumn, when support and benefits finish - and she was honest enough to say that (with the current state of the economy) the government would not be able to afford to help all those who would become destitute.
Thousands of meals have been prepared by restaurants and bars to try at least give people in need one good meal a day. One café bar in Coral Bay has so far produced over twelve thousand meals for people in that area. How long such volunteer efforts can stem the tide is open to question? Other countries borrow money (or “create” money like the UK) but Cyprus is locked out of the money markets after the “haircut” in 2012/3. The only hope is that financial aid will come from the EU and that will need to be repaid in due course.
There is great pressure on the Cyprus government to open the doors to mass tourism, particularly the British and Russian markets, but this would be an enormous risk. If the virus numbers rose and there was a second lockdown, the economy might implode. Any decision is likely to have dreadful consequences for the people ...
No comments:
Post a Comment