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By 1980 the economy of the Republic of Cyprus looked far more balanced (see
Figures 2.7 & 2.8). Whether it is a failure of the planning process or a consequence
of the constraints imposed on the economy by the invasion, the Cypriot economy
has subsequently become more dependent, directly and indirectly on a single sector
(Figure 2.16).
Figure 2.16 Ratio of receipts from tourism to total export earnings.
100%
80%
60%
40%
20%
0%
eo(Dr-r>.r">r>r-i--r-»cooococococoa)CO
0)0)0>0)0)a)8)0)03 0)0)0>a).0)0)03G}
1961 - 1975 incomplete time series
Sources: Exports: Monthly Import and Export Statistics. Tourism: 1961-75 Chrlstodoulou, 1992,
p. 140, 1976-87 Stat. Abstract 1987 & 88, Rep. of Cyp.
With de facto division, the Republic of Cyprus lost its most important coastal
resorts, Kyrenia and Famagusta (Varosha), representing 65% of all tourist
accommodation and 87% of hotel beds under construction 47 . More fundamentally,
1974 saw a general fall in manpower of 30% 48 coupled with a 1000% rise in
unemployment 49 . Approximately three out of every five people displaced by the
47 Republic of Cyprus, April 1975. (Unpublished - i.e. "Restricted") "Economic Consequences of
the Turkish Invasion and Future Prospects of the Cyprus Economy. " Nicosia: The Planning Bureau,
p. 8.
48 Between 1973-76, the economically active population of the Republic of Cyprus dropped from
279,700 to 195,300; Republic of Cyprus 1993. Historical Data on the Economy of Cyprus 1960-
1991. Nicosia: Dept. of Statistics and Research, Ministry of Finance, p. 181.
49 The average rate of unemployment in 1974 and 1975, in the Republic of Cyprus, was 33 %, in
1973 it had been 3 %, ibid.
90