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the early eighties, when Turkish arrivals dropped significantly. As they point out<br />

however, "many Turkish tourists visit for short periods, often to shop for lower<br />

priced goods [due to lower rates of taxation on some imported durables] and tend to<br />

stay in cheaper accommodation or with friends." In 1986 tourism was, seemingly<br />

belatedly (see Figure 4.2 above), identified as "the driving force of the economy" 68 .<br />

An agreement with Turkey provided additional financial assistance. The Five Year<br />

Development plan of 1987 aimed at reducing seasonality, increasing the average<br />

length of stay and diversifying the sources of tourism. Some of this, it was hoped,<br />

would be accomplished with the help of incentives provided in the Tourism<br />

Promotion Bill (1987) offering low rents, tax and duty exemptions, and the right for<br />

foreign investors to repatriate profits.<br />

Table 4.8 Direct financial incentives to the tourist industry<br />

'000's of current US$'s<br />

1987 1988 1989 1990 1991 1992 1993<br />

Waivers of import duties

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