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Tourism Sector Boosted With €10 Million Budget Increase

by THEFUTURE.TEAM

July 3, 2024

In a significant move to bolster its tourism sector, President Nikos Christodoulides of Cyprus has announced a €10 million increase in the 2025 budget for the Deputy Ministry of Tourism. This announcement was made at the General Assembly of the Cyprus Hotel Association (CHA), along with the unveiling of a comprehensive five-year plan aimed at addressing seasonality within the tourism industry.

Strategic Objectives and Economic Resilience

The budget increase aims to enhance Cyprus’ international promotion efforts, reflecting the government’s commitment to strengthening the tourism sector amidst various geopolitical and economic challenges. These challenges include instability in the Middle East, the war in Ukraine, economic downturns in key European markets, and ongoing issues in the aviation sector.

President Christodoulides highlighted the resilience of the Cypriot hotel industry and assured that the government is closely monitoring these developments to support stakeholders effectively. A key aspect of the five-year plan is the training of workers in partially or fully suspended hotel units, aimed at increasing the number of hotels operating year-round. This initiative is expected to create stable employment opportunities and extend the tourist season, thus boosting overall industry profitability.

International Relations and Market Expansion

The President also pointed to the positive implications of establishing a Strategic Dialogue with the United States, positioning Cyprus among a select group of countries engaged in regular, structured cooperation with the US. This dialogue, which extends beyond energy and trade, promises to open new avenues for collaboration in tourism. The possibility of direct flights from the US to Cyprus was mentioned, indicating ongoing discussions to facilitate this development.

Furthermore, recent diplomatic initiatives, including the opening of a new mission in Kazakhstan and an upcoming mission in Armenia, are part of Cyprus’ strategy to diversify and expand its tourism markets. The President’s visit to Poland, a key tourism market for Cyprus, underscores these efforts.

Industry Challenges and Future Outlook

Despite these positive developments, CHA President Thanos Michaelides acknowledged the difficulties faced by the hotel industry in 2023, citing reduced profitability due to rising operational costs and high borrowing levels. Looking ahead, lower occupancy rates are anticipated in 2024, compounded by reduced flights and economic challenges in major tourism source markets.

Michaelides stressed the necessity for a clear roadmap to modernise Cyprus’ tourism offerings, ensuring the sector’s sustainability and competitiveness. The upcoming HORTEC conference in October 2025, hosted in Cyprus, is expected to play a pivotal role in shaping future tourism policies in alignment with Cyprus’ EU Presidency.

Apple Loses €13 Billion Tax Battle Against EU: A Landmark Decision for Big Tech

by THEFUTURE.TEAM

September 11, 2024

In a landmark ruling, the European Court of Justice has upheld the European Union’s demand for Apple to pay €13 billion in back taxes to Ireland, marking a significant defeat for the tech giant. This decision sets a major precedent for the regulation of Big Tech companies, as it reaffirms the EU’s commitment to curbing tax avoidance by multinational corporations operating within its borders.

The case, which dates back to 2016, centres around allegations that Apple received illegal state aid from Ireland through preferential tax arrangements. The European Commission argued that these agreements allowed Apple to avoid paying its fair share of taxes on profits generated in Europe, effectively granting the company an unfair competitive advantage. The Commission initially ordered Apple to repay €13 billion, a decision the company contested in court.

Apple’s defence has always hinged on the argument that it followed the tax laws as they were written and that the profits in question were largely attributable to its operations outside of Europe. Despite this, the EU maintained that Apple’s arrangement with Ireland constituted illegal state aid, as it allowed the company to channel significant revenue through the country while paying a fraction of the taxes it would have owed in other jurisdictions.

This ruling is seen as a watershed moment in the ongoing debate around tax fairness and the role of multinational corporations in the global economy. For the European Union, the outcome reaffirms its position as a global leader in the push for corporate tax transparency and accountability. By holding Apple accountable for its tax practices, the EU is sending a clear message to other tech giants, signalling that no company, regardless of its size or influence, is above the law.

The implications of this decision are likely to reverberate throughout the tech industry, with other major corporations potentially facing increased scrutiny over their tax arrangements. In recent years, there has been growing public and governmental pressure to ensure that Big Tech companies contribute their fair share to the economies in which they operate. This ruling could catalyze further regulatory action, both within the EU and globally.

For Apple, the financial impact of the ruling is significant, but perhaps more important is the reputational damage it may suffer. As one of the world’s most valuable companies, Apple has long been in the spotlight for its tax practices, and this decision is likely to reignite debates over corporate responsibility and the ethics of tax avoidance.