CYPRUS CYPRUS AN INTERNATIONAL, FINANCIAL AN INTERNATIONAL, FINANCIAL

AND BUSINESS CENTREAND BUSINESS CENTRE

BUSINESS FORUMBUSINESS FORUM

HAMBURG 22.03.2012HAMBURG 22.03.2012

PRESENTATION PRESENTATION BY GEORGE MICHAELIDESBY GEORGE MICHAELIDESTOURISM CONSULTANTTOURISM CONSULTANT

OPPORTUNITIES OFFERED FOR INVESTMENTS OPPORTUNITIES OFFERED FOR INVESTMENTS ––CYPRUS TOURISM SECTORCYPRUS TOURISM SECTOR

VOLUME, VALUE AND CHARACTERISTICS VOLUME, VALUE AND CHARACTERISTICS OF CYPRUS TOURISMOF CYPRUS TOURISM

20112011WORLD TOURISMWORLD TOURISM

970 MILL970 MILL

HOLIDAYS IN THE MEDITTERANEAN REGIONHOLIDAYS IN THE MEDITTERANEAN REGION100 MILL100 MILL

CYPRUS 2.4 MILLCYPRUS 2.4 MILL

REVENUE REVENUE €€1.8 MILL1.8 MILL12% OF G.D.P12% OF G.D.P

94% OF ALL TOURISTS94% OF ALL TOURISTS EUROPEANSEUROPEANSUK MAIN MARKETUK MAIN MARKET 1 MILL1 MILLFOLLOWED BY RUSSIAFOLLOWED BY RUSSIA 300,000300,000GERMANYGERMANY 160,000160,000

57 GERMAN TOUR OPERATORS FEATURE CYPRUS 57 GERMAN TOUR OPERATORS FEATURE CYPRUS HOLIDAYSHOLIDAYS

BEDS AVAILABLE IN HOTELS BEDS AVAILABLE IN HOTELS 90,00090,000AVERAGE NET BED AVERAGE NET BED OCCUPANCY RATEOCCUPANCY RATE 56%56%PEOPLE EMPLOYEDPEOPLE EMPLOYED 40,00040,000

SEASONALITYSEASONALITYJANUARY JANUARY –– MARCHMARCH 9.5%9.5%APRIL APRIL –– JUNEJUNE 32,1%32,1%JULY JULY –– SEPTEMBER SEPTEMBER 39.7%39.7%OCTOBER OCTOBER –– DECEMBER DECEMBER 18,7%18,7%

WHERE DO THEY STAYWHERE DO THEY STAYAYIA NAPA AYIA NAPA –– PROTARAS PROTARAS 34%34%LARNACALARNACA 9%9%LIMASSOLLIMASSOL 13%13%PAPHOSPAPHOS 32%32%NICOSIANICOSIA 6%6%

TOURISM PARAMETERSTOURISM PARAMETERS59% OF UK TOURISTS59% OF UK TOURISTS PACKAGE PACKAGE

TOURISTSTOURISTS77% OF GERMANS77% OF GERMANS PACKAGEPACKAGE

TOURISTSTOURISTS91% OF SWEDISH91% OF SWEDISH PACKAGE PACKAGE

TOURISTSTOURISTS75% OF RUSSIAN75% OF RUSSIAN PACKAGEPACKAGE

TOURISTSTOURISTS

MAIN FEATURES OF CYPRUS MAIN FEATURES OF CYPRUS TOURISM POLICYTOURISM POLICY

GROWTHGROWTHQUALITATIVEQUALITATIVE

NOTNOTQUANTITATIVEQUANTITATIVE

COMBATCOMBATSEASONALITYSEASONALITY

INCREASE PER INCREASE PER CAPITA CAPITA

EXPENDITUREEXPENDITURE

INVESTMENT IN INVESTMENT IN INFRASTRUCTUREINFRASTRUCTURE

FOCUS ON VALUES NOT DISCOUNTS

MOVEMOVE

FROM 3 SFROM 3 SSS SUN, SEA, SANDSUN, SEA, SANDTO 3 ETO 3 ESS EDUCATION EDUCATION

ENTERTAINMENTENTERTAINMENTEXCITEMENTEXCITEMENT

NEW

SUN, SEA, SILICONE

GLOBAL ECONOMIC CRISISGLOBAL ECONOMIC CRISIS

A GOOD WAKE UP CALL BUT IS ALSO A A GOOD WAKE UP CALL BUT IS ALSO A TIME OF OPPORTUNITIES THAT NEED TO TIME OF OPPORTUNITIES THAT NEED TO BE FULLY EXPLOITEDBE FULLY EXPLOITED

10 REASONS THAT LED CYPRUS 10 REASONS THAT LED CYPRUS TOURISM TO SUCCESSTOURISM TO SUCCESS

1.1. PEOPLEPEOPLE2.2. KNOW HOW KNOW HOW –– KNOW WHATKNOW WHAT3.3. CLIMATECLIMATE4.4. LANDSCAPE LANDSCAPE –– BEACHESBEACHES5.5. CULTURECULTURE6.6. VALUE FOR MONEYVALUE FOR MONEY7.7. HOTELSHOTELS8.8. SERVICESERVICE9.9. COMMUNICATIONCOMMUNICATION10.10. SECURITYSECURITY

THE OUTLOOKTHE OUTLOOK

SUN SUN –– SEA PLUSSEA PLUSREPOSITIONING BASED ON QUALITY AND SUSTAINABILITYREPOSITIONING BASED ON QUALITY AND SUSTAINABILITY

PROMOTE ISLANDPROMOTE ISLAND’’S DIVERSITY AND YEARS DIVERSITY AND YEAR--ROUND APPEALROUND APPEAL

ATTRACT HIGHER SPENDING VISITORS THROUGH NICHE SPECIALATTRACT HIGHER SPENDING VISITORS THROUGH NICHE SPECIALINTEREST TOURISM, WHICH CAN PROVIDE GROWTH ALLOWINGINTEREST TOURISM, WHICH CAN PROVIDE GROWTH ALLOWINGTHE ISLAND TO MOVE BEYOND PROVIDING MASS TOURISM ANDTHE ISLAND TO MOVE BEYOND PROVIDING MASS TOURISM AND

TOWARDS THE HIGH END OF THE MARKETTOWARDS THE HIGH END OF THE MARKET

THE OUTLOOKTHE OUTLOOK

INITIATIVEINITIATIVESENSIBILITYSENSIBILITY

CREATIVITYCREATIVITY INVESTMENTINVESTMENT

CYPRUS CYPRUS TOURISMTOURISM

INFRASTRUCTURAL AND OTHER INFRASTRUCTURAL AND OTHER PROJECTS THAT HAVE ENHANCED PROJECTS THAT HAVE ENHANCED

TOURISMTOURISM20042004--2006 CYPRUS ABSORBED 2006 CYPRUS ABSORBED €€109MILL FROM 109MILL FROM THE EUTHE EU’’S STRUCTURAL AND COHESION FUNDS.S STRUCTURAL AND COHESION FUNDS.FOR 2007FOR 2007--2013 2013 €€640 MILL FOR FUNDING THE 640 MILL FOR FUNDING THE DEVELOPMENT OF VARIOUS SECTORS OF THE DEVELOPMENT OF VARIOUS SECTORS OF THE ECONOMY.ECONOMY.BRAND NEW LARNACA AIRPORT. CAPACITY TO BRAND NEW LARNACA AIRPORT. CAPACITY TO HANDLE 7.5MILL PASSENGERS, 16 HANDLE 7.5MILL PASSENGERS, 16 AIRBRIDGES, 4 TIMES BIGGER THAN THE AIRBRIDGES, 4 TIMES BIGGER THAN THE EXISTING ONE.EXISTING ONE.PAPHOS AIRPORT UPGRADED. 2.7MILL PAX PAPHOS AIRPORT UPGRADED. 2.7MILL PAX ANNUALY ANNUALY

€€ 620

MIL

L62

0MIL

L

IN 2011 DEVELOPMENT PROJECTS OF IN 2011 DEVELOPMENT PROJECTS OF €€150MILL150MILLPUBLIC TRANSPORTPUBLIC TRANSPORTCULTURAL EVENTSCULTURAL EVENTSDIVINGDIVINGROAD SYSTEMROAD SYSTEMSHOPPING MALLSSHOPPING MALLSBLUE FLAGS IN MORE THAN 50 BEACHESBLUE FLAGS IN MORE THAN 50 BEACHESNICOSIA INTERNATIONAL CONFERENCE NICOSIA INTERNATIONAL CONFERENCE CENTRECENTRE

INFRASTRUCTURAL AND OTHER INFRASTRUCTURAL AND OTHER PROJECTS THAT HAVE ENHANCED PROJECTS THAT HAVE ENHANCED

TOURISMTOURISM

INVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITIES

THE CYPRUS TOURIST INDUSTRY IS EAGER TO THE CYPRUS TOURIST INDUSTRY IS EAGER TO COOPERATE WITH INVESTORS ON UPGRADING COOPERATE WITH INVESTORS ON UPGRADING THE ENTIRE INFRASTRUCTURE:THE ENTIRE INFRASTRUCTURE:GOLF GOLF MARINASMARINASTHEME PARKSTHEME PARKSSPORTS TOURISM SPORTS TOURISM –– TRAINING CENTRESTRAINING CENTRESACTIVITY HOTELSACTIVITY HOTELSCULTURAL AND CONFERENCE CENTRES CULTURAL AND CONFERENCE CENTRES

CRUISE TOURISMCRUISE TOURISMDIVING CENTERSDIVING CENTERSWELNESS AND MEDICAL TOURISM, WELNESS AND MEDICAL TOURISM, FITNESS RETREATFITNESS RETREATRESIDENTIAL TOURISMRESIDENTIAL TOURISMAGROTOURISMAGROTOURISMMANAGEMENT AND OPERATION OF MANAGEMENT AND OPERATION OF THEMED TOURIST PROJECTSTHEMED TOURIST PROJECTSCASINOCASINO

INVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITIES

EU EU –– CTO CTO

INCENTIVE SCHEME FOR SUSTAINABLE INCENTIVE SCHEME FOR SUSTAINABLE INVESTMENTS IN THE ENRICHMENT AND INVESTMENTS IN THE ENRICHMENT AND UPGRADING OF THE TOURIST PRODUCTUPGRADING OF THE TOURIST PRODUCT

ENRICHMENTENRICHMENTDIVERSIFICATIONDIVERSIFICATIONDEVELOPMENT OF SPECIAL PRODUCTSDEVELOPMENT OF SPECIAL PRODUCTSUPGRADING EXISTING ACCOMMODATIONUPGRADING EXISTING ACCOMMODATION

SPECIFIC INVESTMENT SPECIFIC INVESTMENT OPPORTUNITIESOPPORTUNITIES

INVESTMENT IN RESIDENTIAL TOURISM INVESTMENT IN RESIDENTIAL TOURISM (SECOND (SECOND –– HOME TOURISM)HOME TOURISM)

FAVOURABLE ENVIRONMENT FOR FOREIGN FAVOURABLE ENVIRONMENT FOR FOREIGN INVESTMENTS RELIABLE AND SECURE LEGAL INVESTMENTS RELIABLE AND SECURE LEGAL SYSTEM THAT INVESTMENTS IN PROPERTY BY SYSTEM THAT INVESTMENTS IN PROPERTY BY FOREIGNERS ARE PROTECTED AND RIGHTS FOREIGNERS ARE PROTECTED AND RIGHTS ARE SAFEGUARDEDARE SAFEGUARDED

COMMITMENT TO EXCELLENCECOMMITMENT TO EXCELLENCEQUALITY ASSURANCE CERTIFICATIONQUALITY ASSURANCE CERTIFICATIONHIGH QUALITY PRODUCTSHIGH QUALITY PRODUCTSGREAT VARIETY OF PROPERTIESGREAT VARIETY OF PROPERTIESBEST PLOT LOCATIONS IN CYPRUSBEST PLOT LOCATIONS IN CYPRUSMODERN AND EFFECTIVE ROAD MODERN AND EFFECTIVE ROAD NETWORK UNIQUE ISLAND LIFESTYLENETWORK UNIQUE ISLAND LIFESTYLE

SPECIFIC INVESTMENT SPECIFIC INVESTMENT OPPORTUNITIESOPPORTUNITIES

RESIDENTIAL TOURISMRESIDENTIAL TOURISM

NEW AIRPORTSNEW AIRPORTSMORE AIRLINES SERVINGMORE AIRLINES SERVINGIMPRESSIVE GOLF RESORTSIMPRESSIVE GOLF RESORTS300 DAYS OF SUNSHINE PER YEAR300 DAYS OF SUNSHINE PER YEAREU EU –– RESORTRESORTDURING THE LAST 5 YEARS 10,000 PURCHASES DURING THE LAST 5 YEARS 10,000 PURCHASES WERE MADE BY FOREIGN INVESTORSWERE MADE BY FOREIGN INVESTORS

SPECIFIC INVESTMENT SPECIFIC INVESTMENT OPPORTUNITIESOPPORTUNITIES

RESIDENTIAL TOURISMRESIDENTIAL TOURISM

LOMBARDI BEACH FRONT VILLASLOMBARDI BEACH FRONT VILLAS

LIMASSOL MARINALIMASSOL MARINAA A €€350 MILL PROJECT350 MILL PROJECT

Limassol Marina will provide for the mooring Limassol Marina will provide for the mooring of yachts at sea and on shore. In addition, the of yachts at sea and on shore. In addition, the project includes the development of buildable project includes the development of buildable land into a mixture of residential, commercial land into a mixture of residential, commercial units as well as buildings of cultural uses.units as well as buildings of cultural uses.

*READY BY 2014*READY BY 2014

APP FROM 428 THOUSAND EURO

VILLA 1.6 M

The Limassol Marina will enhance Nautical The Limassol Marina will enhance Nautical Tourism, upgrade the Tourist product of Cyprus, Tourism, upgrade the Tourist product of Cyprus, put Cyprus at the centre of the yachting put Cyprus at the centre of the yachting destination map and provide yacht owners top destination map and provide yacht owners top quality service.quality service.

LIMASSOL MARINALIMASSOL MARINAA A €€350 MILL PROJECT350 MILL PROJECT

The Marina will be conveniently located adjacent to The Marina will be conveniently located adjacent to the heart of Limassol, making it a landmark the heart of Limassol, making it a landmark development for the locals and an attraction for the development for the locals and an attraction for the visitors.visitors.Carefully designed to blend with the surrounding area Carefully designed to blend with the surrounding area of the old of the old harbourharbour, the old town and the castle, the , the old town and the castle, the project aims to become a unique residential and project aims to become a unique residential and leisure destination.leisure destination.

LIMASSOL MARINALIMASSOL MARINAA A €€350 MILL PROJECT350 MILL PROJECT

GOLF IN CYPRUS GOLF IN CYPRUS ––GOLF IN AYIA NAPAGOLF IN AYIA NAPA

TEEING OF ALL YEAR ROUNDTEEING OF ALL YEAR ROUND3 COURSES AVAILABLE3 COURSES AVAILABLE11 MORE PENDING APPROVAL11 MORE PENDING APPROVAL

AN 18AN 18--HOLE GOLF COURSE IN AYIA NAPA EXPECTED TO HOLE GOLF COURSE IN AYIA NAPA EXPECTED TO START NEXT YEAR.START NEXT YEAR.A JOINT VENTURE OF 36 HOTELIERS AND THE A JOINT VENTURE OF 36 HOTELIERS AND THE MUNICIPALITIES OF AYIA NAPA AND PARALIMNI SECURED MUNICIPALITIES OF AYIA NAPA AND PARALIMNI SECURED GOVERNMENT LAND AND LOOK FOR INVESTOR TO BUILT GOVERNMENT LAND AND LOOK FOR INVESTOR TO BUILT AND OPERATE THE GOLF COURSE CLUB HOUSE, AND OPERATE THE GOLF COURSE CLUB HOUSE, MANAGEMENT OFFICE AND STOREROOMS. NO HOUSING MANAGEMENT OFFICE AND STOREROOMS. NO HOUSING DEVELOPMENT.DEVELOPMENT.

GOLF IN CYPRUS GOLF IN CYPRUS ––GOLF IN AYIA NAPAGOLF IN AYIA NAPA

KYPEROUNDA HEALTH AND KYPEROUNDA HEALTH AND FITNESS RETREATFITNESS RETREAT

A SPA HOTEL TO A SPA HOTEL TO BE BUILT ON BE BUILT ON 110,000 M110,000 M²² AT AT KYPEROUNDA KYPEROUNDA VILLAGE FAMOUS VILLAGE FAMOUS IN GERMANY FOR IN GERMANY FOR TREATMENT OF TREATMENT OF GERMAN CHILDREN GERMAN CHILDREN SUFFERING OF SUFFERING OF ASTHMA.ASTHMA.

OCEAN HALLOCEAN HALLA A ““SHELL PROJECTSHELL PROJECT””

AN INSPIRING PROJECT TO ENTERTAIN, EDUCATE AN INSPIRING PROJECT TO ENTERTAIN, EDUCATE MEET AND SHARE.MEET AND SHARE.VISITORS OF THIS CYPRUS EXPERIENCE PROJECT HAVE VISITORS OF THIS CYPRUS EXPERIENCE PROJECT HAVE THE OPPORTUNITY TO SEE AND EXPERIENCE THE THE OPPORTUNITY TO SEE AND EXPERIENCE THE DIFFERENT AGES AND FACES OF CYPRUS BY DIFFERENT AGES AND FACES OF CYPRUS BY TRAVELLING THROUGH THE VARIOUS MULTIMEDIA TRAVELLING THROUGH THE VARIOUS MULTIMEDIA THEMATIC AREASTHEMATIC AREAS

OCEAN HALLOCEAN HALLA A ““SHELL PROJECTSHELL PROJECT””

OCEAN HALLOCEAN HALLA A ““SHELL PROJECTSHELL PROJECT””

OCEAN HALLOCEAN HALLA A ““SHELL PROJECTSHELL PROJECT””

OCEAN HALLOCEAN HALLA A ““SHELL PROJECTSHELL PROJECT””

OCEAN HALLOCEAN HALLA A ““SHELL PROJECTSHELL PROJECT””