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Just to put minds at rest that manufacturing, like the construction industry, is not
entirely the wrong horse; in 1976 visitors to Cyprus for more than one day were
stili only 70% of their 1973 level. They were only as high as this because 43.2% of
those registered as tourists were Lebanese Christian refugees who briefly stopped
over in Cyprus on their way to other destinations 45 .
Figure 5.9 Percentage change in employment on previous year, by broad
sector: manufacturing & tourism, 1971-1982.
1971 1972 1973 1976 1977 1978 1979 1980 1981 1982
= manufacturing
EU Tracie & tourism*
-30% -
+As no superate catagory for tourism exista in officiai historical data, the
1968 ISIC catagory: wholesale & retai! trade, restaurants & hôtels, is
used as a proxy.
Source: Rep. of Cyprus. "Historical Data on the Economy of Cyprus, 1960-91." Nicosia: Dept. of Statistica & Research, pp. 182-83.
As a conséquence of 1974 however, employment in tourism had plummeted. From
the deeper trough of 1975, average growth of 10% followed the influx of wealthy
Lebanese escapees, bringing with them valuable foreign exchange. As argued
earlier, the growth from a higher base in manufacturing employment is considérable
at 17%. Over the next three cruciai years before the second oil shock, growth in
employment in manufacturing, a sector already accounting for 18% of employment
(compared to 7% in the construction industry and 5% in hôtels and restaurants) is
more significant than tourism despite the saving grace of the Lebanese influx.
According to another (essentially Keynesian) argument, employment generation was
45 Republic of Cyprus. 1978. Economie Report 1976. Nicosia: Dept. of Statistics and Research,
Ministry of Finance, p. 8.
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