roseandchan wrote:hi dt, i here what you are saying but now cyprus has joined the euro i'm not sure they will do so well. since the euro prices have gone up bigstyle for us having sterling. most people here now shop here in the trnc rather than going south. with the conversion rate that was set, the products and services have become far more expensive than other places in europe. do you not think this will have an effect on exports and the economy in general? why say would a german tourist pay 2 euros more for a coffee in cyprus than in germany? Malta now has the same sort of problem, day to day living has now become more expensive than in london and tourist are just not paying those sort of prices.
The problem is one of the entire Eurozone against the sterling and the dollar. The weakening of both currencies makes it expensive for English and Americans but not so for Europeans. I'm in Frankfurt right now actually sitting at a restaurant in the airport and the espresso is 2.70 Euros. (4.50 for a double). I don't think Cyprus is more expensive than that.
However! As per my last post the problem lays with the tourist inflow from the UK into Cyprus which is why we are downgradig this industry and from what i hear re-designing the entire package....(eg Ayia Napa will be transformed into a more upmarket destination with much less capacity)
As for things being more expensive than London, I can tell you that the sterlin has quite a bit more to fall before we start paying anywhere near what the London prices are.