Recovery, diversification, incentives, mixed-use developments and more: George Campanellas, CEO of Invest Cyprus shares his thoughts on investment and development in the tourism and hospitality sector in Cyprus, ahead of his talk in the webinar on Global FDI Trends in Hospitality Investments.
What is the role of Invest Cyprus, in particular in the hospitality sector?
Invest Cyprus is the Investment Authority of the Government , dedicated to promoting, attracting and facilitating foreign direct investment into the country , in line with the government’s growth strategy . We are the first point of contact for the foreign investors, supporting the development of their business case for investing into the country.
The TourInvest Unit, is a dedicated and specialized unit within Invest Cyprus which aims to promote Cyprus’ investment opportunities in the tourism and hospitality sector. The unit operates in line with our National Tourism Strategy, to establish the country as a quality, sustainable and digitally smart, all year round destination.
What are the opportunities in the Cyprus hospitality market for investors, both local and international?
The investment decisions of big hotel chain groups and international investors to expand their brand names into the local market is clearly a vote of confidence to the island’s tourism and hospitality potential. Recent sector specific investments showcase the country’s attractiveness as an investment destination for leading international groups. Cyprus will soon be home to the largest and first integrated casino resort in Europe, the City of Dreams Mediterranean, one of the biggest hospitality projects developed and operated by the leading Asian casino operator Melco International.
Do you anticipate a rapid or gradual recovery of investment in Cyprus following the current downturn?
The new reality has brought significant changes globally globally with FDI flows expected to drop at least by least by 40% as predicted by UNCTAD. Clearly the pandemic crisis has affected all countries, which are now paving the way for recovery and mobility.According to the EU Commission forecast, real GDP in Cyprus will contract by 7.75% in 2020 and recover in 2021 by 5.25%. Cyprus has proven its resilience having experienced previous external shocks, with its economy regaining ground faster than expected. Definitely, attracting direct foreign investment of added value is key to recovery. For an open economy such as Cyprus, economic recovery will come from external demand and this is where we should be focusing all our efforts. The interest of investors remains high and I would say that we should take the opportunity to adapt to the new model and drive transformation which would lead to a stable recovery of the economy.
Cyprus is seeing a number of major mixed-use real estate developments, combining resorts with residential, retail or entertainment. What is the appeal of these projects?
The country’s real estate industry remains one of the the strong pillars of our economy. FDI has been pouring into commercial, residential, and other mixed-use developments, with foreign investors closing closing multimillion-euro deals in large-scale developments.
Cyprus offers international investors attractive investment opportunities in a number of mixed-use and tourism thematic projects and we do see a growing interest coming from both institutional and individual investors. Focus is now given on upgrading and diversifying our offering towards the transformation of the hospitality industry and turning Cyprus into a high quality tourism destination.
Our strategy for developing Cyprus into a top destination for hosting regional headquarters of big multinational companies has been extremely successful and the island is currently been considered considered the largest maritime cluster in EU, hosting the headquarters of hundreds of shipping companies. At the same time, Cyprus is fast becoming a regional center for fintech, forex and software development companies, becoming home to a significant number of foreign employees which which fuel the demand of domestic tourism, something which has been clearly observed this year .
What do you see as the major trends coming up in hospitality and travel in Cyprus?
Τhere is clearly a growing trend towards the wellness segment. Cyprus, due to due to its world-class reputation for high-quality private healthcare in a technologically advanced environment, is fast becoming an emerging medical tourism destination. English is widely spoken, and medical and wellness professionals are all highly-trained and experienced. The island’s ideal location gives easy access to main markets and its year-round pleasant climate benefits recuperation and rehabilitation. At the same time, our Government’s attention to SDGs to SDGs and environmental protection, combined with the island’s physical characteristics, including the large mountain areas of Troodos and the large National Park of Akamas, along with a blend of natural attractions, sets the right framework for developing agritourism, sustainable tourism and even wine tourism.
Invest Cyprus is closely working with the local business ecosystem putting together greenfield projects in line with particular interest in thematic tourism, that would be looking for strategic investment or experienced operator.
To hear more from George Campanellas and other speakers about the opportunities in hospitality real estate investment and development in Cyprus, register to the Global FDI Trends in Hospitality Investments: The Case for Cyprus webinar here.