Tourist information about Cyprus
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Useful information about Cyprus
Cyprus Background
Independence from the UK was approved in 1960 with constitutional guarantees by the Greek Cypriot majority to the Turkish Cypriot minority. In 1974, a Greek-sponsored attempt to seize the government was met by military intervention from Turkey, which soon controlled almost 40% of the island. In 1983, the Turkish-held area declared itself the "Turkish Republic of Northern Cyprus", but it is recognized only by Turkey. UN-led direct talks between the two sides to reach a comprehensive settlement to the division of the island began in January 2002.
Cyprus Economy
Economic affairs are affected by the division of the country. The Greek Cypriot economy is prosperous but highly susceptible to external shocks. Erratic growth rates in the 1990s reflect the economy's vulnerability to swings in tourist arrivals, caused by political instability in the region and fluctuations in economic conditions in Western Europe. Economic policy is focused on meeting the criteria for admission to the EU. As in the Turkish sector, water shortages are a perennial problem; a few desalination plants are now online. The Turkish Cypriot economy has less than one-half the per capita GDP of the south. Because it is recognized only by Turkey, it has had much difficulty arranging foreign financing, and foreign firms have hesitated to invest there. It remains heavily dependent on agriculture and government service, which together employ about half of the work force. To compensate for the economy's weakness, Turkey provides substantial direct and indirect aid to tourism, education, industry, etc.
