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stay arrivais or diminish with the reported decline in the rôle of "gift fair" (see
Figure 4.4). "Gift Fair" may play some rôle in the level of trade imbalance, though
its significance is debatable. The tiny size of the economy must not, however, be
forgotten before this is dismissed out of.hand.
In the early post '74 phase, the underdeveloped Turkish-Cypriot private sector
concentrated on this "gift fair" trade for the Turkish visitor market. This was the
sum, non-agricultural, role of the private sector, according to sources in the
CTCCB 80 , whilst the state sector, supported by co-operative institutions and the
Evkaf foundation, re-organised agriculture, industry, transport and communications,
and the tour ist sector. The concentration of private entrepreneur ial talent in such a
limited field is perhaps evidence of its under developed character, at the time of the
de facto division; it is also revealing of politicai constraints and disincentives
affecting potential private sector investment.
According to the same sources 81 , trade in the "gift fair" market has since declined,
as Turkish visitors have more recently been purchasing less in northern Cyprus, on
account of economic developments in Turkey. However, according to other
sources 82 , because of the shopping (and gambling) element of the Turkish visitor
trade, tourists from Turkey stili had the highest multiplier effect on the Turkish-
Cypriot economy between 1986-1990. This statement, however, is difficult to verify
as disaggregated tourism data was not available, and given the nature of the trade
and the economy, data on Turkish Lira expenditure by foreign visitors is difficult to
estimate.
80 Interview with Gulhan Alp, op. cit. and interview with Suleyman Kiryagdi, op. cit.
&l ibid.
ÄO
OlgunM.E. 1991 Socio-Economic Profile of the Turkish Cvpriot Community and the Main Issues
to be Addressed in Preparine for a Politicai Solution to the Cvprus Problem, northern Nicosia: Olgun
Consultancy Services for the UNDP under the Development Support Services, p.2.
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