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Cyprus Cyprus

Cyprus to Receive a EUR87 Million EC Guarantee Scheme for its Tourism Sector

On January 12 The European Commission (EC) announced that it had approved, under EU State aid rules, a EUR86,6 million Cypriot scheme to support companies active in the tourism sector.

This scheme will include organisers of package travel, hotel businesses, and car rental companies affected by the coronavirus outbreak.

The European Commission found that the scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the Cypriot economy in a period when the normal functioning of the tourism and package travel market is severely disturbed by the coronavirus outbreak.

The scheme aims at supporting service providers in the touristic sector that are experiencing significant losses of revenue and liquidity shortages due to the coronavirus outbreak and the restrictive measures that Cyprus and other governments have had to implement to limit the spread of the virus.

According to the EC, the public support will take the form of public guarantees which aim at covering vouchers (i.e. credit notes) issued by the beneficiaries to either consumers or organisers of package travels for cancelled travel packages or individual touristic services booked prior to 31 October 31, 2020.