articles | 02 April 2024

Cyprus hospitality sector is key economic contributor

The accommodation and food service sector was the second-largest contributor to both the economy and employment in Cyprus in 2021, according to Eurostat, the EU’s statistical service.

Specifically, accommodation and food service activities had the largest contribution to the added value of the business economy in Greece, accounting for 6.5 per cent of the added value of the business economy in the country. This was closely followed by Cyprus with 6 per cent, and then Croatia with 5.4 per cent. Conversely, the lowest shares were recorded in Slovakia at 0.8 per cent, the Czech Republic at 1 per cent, and both Poland and the Netherlands at 1.2 per cent each. Regarding employment, the sector’s contribution to the business economy was significantly higher in all countries.

The highest share was recorded in Greece, comprising 19.6 per cent of employment in the country, followed by 13.5 per cent in Cyprus and 9.5 per cent in Spain. On the other end of the spectrum, the lowest shares of employment in this sector were found in Poland at 2.8 per cent, Slovakia at 3.3 per cent, and Finland at 3.9 per cent. Overall, the European Union in 2021 hosted 1.9 million enterprises in the sector of accommodation and food services, which corresponded to 6.1 per cent of all enterprises active in the enterprise economy.

The accommodation and food service sector, encompassing enterprises under section I of the statistical classification of economic activities in the European Community (NACE), was a significant employer during this period. The sector employed a total of 9.9 million people, generated €203.6 billion in value added, and accumulated a net turnover of €446 billion in 2021.

Thus, at the EU level, the sector contributed 6.3 per cent of the persons employed in the business economy in 2021 and accounted for 2.2 per cent of its value added.


Source: Cyprus Mail

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