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Figure 2.28 Invisible changes; revenue from the offshore sector as a % of
revenue from tourism, 1985 to 1993.
20% T
1985 1986 1987 1988 1989 1990 1991 1992 1993
Source: Central Bank of Cyprus.
Seen as a whole, foreign exchange earnings have diversified little since the offshore
sector increased its contribution to export earnings. The increased contribution of
foreign exchange from the offshore sector seems simply to have made up for the
losses in visible exports (see Figure 2.29 below). What also can be seen very clearly
in Figure 2.29 is the volatility and potential volatility in revenue derived from
tourism from which diversification has attempted to insulate the economy. The fall
in the proportion of foreign exchange earnings in 1991 and the conséquent rise in
the contribution of (mainly) visible exports, were the resuit of the Gulf War.
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