Andreas Tsouloftas: "I have been insisting for years that Cyprus should develop a tech sector"

Andreas Tsouloftas, President of the Limassol Chamber of Commerce and Industry (LCCI), talks about the various efforts to mitigate the main issues businesses in Limassol are facing – a real estate supply crunch, port tariffs and schooling – and the new projects in the pipeline that are expected to further upgrade the city’s profile.

What makes Limassol such an appealing destination for headquartering activities and a great place to do business?

Limassol is a smiling, vibrant seaside city and a safe place for a family to stay; a good, demanding businessman always wants to balance work with an enjoyable lifestyle. Every year, the city is changing progressively for the better and that’s why it has been chosen to participate in the EU Mission to create 100 climate-neutral and smart cities by 2030. Limassol is the economic hub of Cyprus, as it contributes nearly 50% of GDP. As Cyprus, we can host any nationality, as exemplified by our good relationships with the Arab countries, Israel, Europe and Africa; we are one of the very few neutral countries.

The flurry of headquartering activity in the past few years has created a vibrant tech scene in Limassol. Has this activity changed the direction of the much-maligned Technology Park at Pentakomo?

I have been insisting for years that Cyprus should develop a tech sector because it’s a business that is not affected by external conditions. In 2023, the sector represented nearly 14% of Cyprus’ GDP and its impact on the economy is enormous. More importantly, it is increasing 40% year on year. We are happy that most of this activity is happening in Limassol, which is why we have been fighting to build the Technology Park at Pentakomo, a project that has been stalled for a long time since the Government failed to make it attractive to investors. The Chamber has done a lot trying to get it off the ground over the last eight years and I’m glad to say that we have managed to make it more attractive to investors. I expect that we will have some good news regarding the Park very soon. It will help tremendously, since a lot of companies in the high-tech industry are expanding so rapidly and there is not enough accommodation to host them. I’m sorry to say that I know of a couple of companies that had to leave the country because of that – we don’t want to see this happening again.

Regarding accommodation, there’s now a severe shortage of residential and commercial spaces in Limassol. Can you provide insights into the work being done to alleviate this pressure?

I am glad to say that, after this year, the high demand generated by people relocating to Cyprus will no longer exist as more than 1,500 houses and new flats are coming onto the market. Also, the Limassol Municipality has launched a big project for low-rent accommodation directed at students and families. Similarly, the Cyprus University of Technology (CUT) has started the construction of student dormitories in Kato Polemidia, which will provide some 600 rooms. What’s left now is to find more commercial spaces. There is a new industrial area at Ypsonas getting ready and, with the Park at Pentakomo, I believe we will be able to mitigate that deficiency too.

International company relocations have also generated demand for more English-language schools as well as more hospital care options. Has there been movement on these fronts?

There are five or six new schools that have either been licensed or are currently under construction on the outskirts of Limassol, while some exisitng schools are expanding their premises to accommodate more students. At the same time, there are three or four new hospitals under construction, some of which will be private.

What do you have to say about the Limassol port tariffs, which are said to be among the highest in the region? Is anything being done to bring down these costs?

Indeed, this is another big issue. While service at the port has improved dramatically, with shipping companies now experiencing almost no delays, unfortunately, port users are giving 56% of their takings back to the Government. This sadly affects the economy, with the businesspeople carrying that extra expense, which is then passed on to the consumer. As a Chamber, we have proposed that, if nothing can be done as far as the contract is concerned (and, by law, we cannot force companies to keep prices lower), the Government should then give back its percentage to the port users. In other words, we have asked the Government not to increase its significant income from the port any further!

Finally, what projects are in the pipeline that will further revitalise and upgrade the city’s profile?

Unfortunately, plans to build a new Limassol Museum have fallen through and a decision was made to repair the existing one. We do not agree with this since a museum is not just a store of artefacts but a tourist attraction and I have sent a letter expressing my disappointment to the relevant Ministry. Furthermore, the existing Limassol Museum is probably the only one on the island that is closed at weekends and this needs to change.

Nonetheless, in Aktaia Odos (the area between Limassol Marina and the new port, which we call the new financial centre of Limassol), the new urban planning permits allow for a higher building coefficient, so we will see more high-rise buildings and plenty of green space, while the old buildings in that area – old factories, for example – have been listed as protected buildings and will be converted into small museums. The Mayor also announced the creation of a Carnival Museum not long ago. As a Chamber, we are also working on a new shipwreck attraction, which will be nearly 100 metres long, making it the second biggest shipwreck after the Zenobia Wreck. We have obtained permission to sink it to a depth of 40 metres near the ancient city of Amathus and, hopefully, before the end of the year, it will become a new destination for divers.

(This interview first appeared in the June edition of GOLD magazine. Click here to view it.)