The government has figured out how to improve the country's affairs

The Cypriot authorities have found a way to save the country's economy - Europe's largest casino resort will be created on the island. The project will attract up to €800 million. The idea has drawn criticism from the church, however, the government is already preparing to issue gambling licenses.

Photo: Yuri Martyanov, Kommersant / buy photo

The Cypriot government has announced plans to create a casino resort on the island. According to the ministers, this will help overcome the deep recession in the economy and attract investment to the country. According to the head of the government of Cyprus, Christos Stylianides, the entire process - from approving the idea to issuing a license to open a casino - will be completed within the next year. “Our economy needs this. In order for tourism to intensify, it is urgent to open a casino,” he said. Mr Stylianides added that it was important to create a credible tender process that would attract international investment.

Unlike the new Conservative government that came to power in February this year, the previous administration strongly opposed the creation of casinos in the country. Former President Dimitris Christofias has repeatedly stated that under him, gambling in the country would not be legalized. Nowadays there are casinos only in the northern part of the island, controlled by the Turks.

The government made the decision to create a casino based on a study conducted by the Cyprus Tourism Organization. There is no such large resort in Europe, therefore Cyprus will attract both tourists from Europe and visitors from the Middle East and mainly from Russia, the study said. According to the Cyprus Statistical Service, in June of this year, 20.6% more Russian tourists vacationed on the island than a year earlier. But the flow from Europe is rapidly declining: the number of holidaymakers from Greece decreased by 32%, from the UK - by 12%, from Germany - by 10.7%. Overall, in the first half of the year the number of tourists in Cyprus decreased by 7% compared to the same period last year.

The authorities are planning to provide services similar to those offered by Las Vegas, Singapore and Macau. In addition to gambling, the resort will become a platform for world show programs; restaurants, shops and shopping centers will also be built on the island. It is expected that the project will replenish the state treasury by €600–800 million. The government’s decision has also encouraged local authorities to make their regions the most attractive for creating a resort on their territory: in particular, the heads of Famagusta and Nicosia expressed the greatest interest.

The idea caused sharp criticism from the church; Archbishop Chrysostomos II stated that the passion for gambling has a detrimental effect on the spiritual development of the individual. But, as local newspapers reported, the country's president, Nikos Anastasiades, said that the church should not be alarmed, since the casino is not aimed at local residents, but at wealthy tourists.

In addition, along with the opening of the casino, the government plans to take measures to revive housing construction, reduce interest rates on loans and oblige companies to hire at least 70% of local workers to reduce unemployment.

But Cyprus may face serious competition in the gambling business. In April, American billionaire Sheldon Adelson announced his desire to invest $35 billion in the construction of Eurovegas near Barcelona or Madrid. This initiative benefits the Spanish economy, where the unemployment rate exceeds 25%. The billionaire also noted that his casino city will be aimed at wealthy clients from Eastern Europe and Russia.

Lydia Palubina

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