It is well publicised that the Cyprus Government is promoting the development of 14 (in total) golf courses making the island as a golf destination. This forms part of a wider policy for upgrading of tourism, which was announced 7 years ago. This 10 year plan has a slow progress in implementing however and the first result is the development of Limassol Marina and the 2 new airports. Hopefully Larnaca and the Paphos marinas will follow soon, whereas the Ayia Napa one which is now under negotiation will follow. We (as public) are fortunate (??) in the sense that the prevailing economic crisis has made the Government to encourage development at a faster rate and with unemployment being on the rise (from 3% in the year 2008 to 6% today) it is hoped that these large scale projects have a lot going for them in terms of Governmental support. There were something like 24 applications for golf courses, out of which 12 passed the initial criteria, but out of these we doubt that more than another 4 will be developed. At this point of time we have the Aphrodite, Secret Valley, Tsada in operation and Elia (Pafos) under development (expected to be operational next year). Out of the numerous new applications the most likely projects that will be implemented (those who have the financial muscle to carry them out) are another one at Aphrodite, another one at Secret Valley, 2 at Limni (Polis area) making Pafos having 8 golf courses in total. Lanitis Phasouri area (Limassol) is also a possible another one to go forward, as well as Tersephanou (Larnaca). The much needed Ayia Napa-Paralimni golf course, it appears, that it has runned into difficulties at present. We expect however that at the end another 2 will come into the market, making a total of 10 golf courses.

These projects which have started with a lot of enthusiasm by all (save the few “greens”) have runned into all sort of difficulties starting from the lack of water (year 2007-2008-2009) forcing the Government to ask for desalination plants, the various legalistic detail regarding nature etc. The idea for having added golf courses is not so to offer added opportunities to developers, but to be used as a tool to upgrade the tourist industry. Because however golf courses on their own it seems are not viable business, real estate was added. Our study on how these golf courses should be developed has been published and submitted to the Government and some of our thoughts have been adopted by the present Minister of the Interior, especially the one regarding the minimum unit size (now 200 sq.mts.). Our idea of having the 200.000 sq.mts. public green which each golf should have to be located in 1-2 spots and not scattered around, has not been adopted out of sheer stupidity of the town planning department and our added suggestion to have within this 200.000 sq.mts. area sports facilities, paid by the developers and gifted to the local authorities, was turned down after pressure from the developers and others. What we are amazed however is the “dead” silence by the hotel associations, for which the golf courses are developed. The golf courses are a measure to encourage tourists of some quality and not to make more real estate developers. As such we have suggested minimum play space and at controlled prices for hotel residents and the creation of the sports ground open to hotel residents and the public. No support from the hoteliers side!! Other idea of ours regarding the quality of the golf development to be checked every year, the submission of a bank guaranteed on performance etc, so that the golf courses are well kept and of an international standard, went also down the drain. Still we will keep trying, collecting along the route a number of enemies. What is sure is that the golf housing units will be much lower priced than what we have today. In addition to the existing unsold units, the additional golf courses will place in the market around 3.500 housing units more or less at the same time. Even if the property crisis passes by the time these projects come into the market (say after 2 years) we do not foresee sales price in excess of €5.000/sq.m. and even less. Competition is healthy and under the present circumstances it must get these new investors rather worried.

Surely things are improving and we hope that the next 5-7 years will find Cyprus with its Marinas, golf courses, new airports, new Malls, new Polis road etc, much closer to Europe with an upgraded quality (and we add downgraded hospitality and friendship).

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