Country profile - Drivers and impacts (Cyprus)

Urbanisation and development

Roughly beginning in the 1960s, the suburbanization of the main towns of Cyprus was based, to a great extent, on migration from rural areas, while it was accelerated by the resettlement of refugees from occupied areas. Whereas new suburban growth still continues in urban areas and around tourist resorts, it is accompanied by a parallel trend in the growth of smaller towns and villages within easy commuting distance from the main urban centres. On the contrary, more remote villages in mountain regions continue to loose population and are preferred only as locations for country homes. Within this overall situation, two key problem areas have been identified:

• Urban core areas in decline. The problems facing urban areas are complex and varied. The expansion of cities has been followed, as elsewhere, by the deterioration and disintegration of historic urban cores due to the exodus of the population and businesses towards areas that are more competitively priced and offer better accessibility and availability of infrastructure. This gradual abandonment has led to a fall in the quality of the urban environment, accompanied by a more general deterioration of economic and social conditions. To address these problems the Department of Town Planning and Housing plays a leading role in the promotion of socio-economic regeneration through the improvement of the built environment and cultural infrastructure.

• Mountain areas at a disadvantage. The mountain villages continue to lose population because, despite their advantages in terms of climate and environment, they are still behind urban areas in terms of employment opportunities and quality of life. A series of measures and actions will be implemented to facilitate the improvement of the life of local communities, promote the development of rural areas and the diversification of their economy. 

Other territorial challenges identified include those associated with urban dispersal as opposed to agricultural restructuring and nature protection, especially in the countryside, where new development continually encroaches on prime agricultural land and areas rich in natural resources. Pressures on land development for holiday homes further complicate this situation where there is already a high demand for the acquisition of holiday homes by overseas owners. With EU accession and the opening up of the real estate market, this trend has been accelerated.

[Source: Publications and Information Office.

Additional information: Town Planning and Housing Department, http://www.moi.gov.cy/moi/tph/tph.nsf]

Land use

The urban development rate relies directly on economic development, housing needs and the expansion of the road network. Over the last decades the urban areas have been rapidly expanding often at the expense of other land uses, while the increase in demand continues. Today, agricultural land constitutes 24% of the total government controlled area of the island, forests 23.7%, other forest covered areas 30.3%, barren and uncultivated land 9.6% and residential areas the remaining 12.4%.

[Source: Publicity and Information Office]

Agriculture

Agriculture continues to be a vital sector of the economy despite its gradual decrease as a result of the development of other sectors, such as tourism and services, and the difficulties encountered in an extremely competitive environment. The importance of agriculture nowadays is not defined solely by financial indicators, but by the fact that it has a multi-functional role to play. In addition to the production of food, it contributes significantly to preserving the environment and providing the means for improving and protecting life in the countryside.

During the period 1960-1974, the agricultural sector expanded rapidly, but in 1974 it was severely affected by the Turkish invasion and occupation. Despite the forced concentration of population in the less productive part of the island, it was possible through concerted efforts and heave investment in land improvement and irrigation to reactivate the agricultural sector and to reach the pre-1974 production levels.

The scattered and small agricultural units, combined with the mountainous terrain, the lack of alternative economic activity in rural areas, the often limited productivity of the land, and the aging of the rural population are factors that limit the productiveness and competitiveness of the agricultural sector. These, in combination with the dry climate, the abandonment of mountain and deprived rural areas, and the continuously increasing intensification of agricultural practices, together with urbanization and urban development have led to the degradation of the rural environment.

Additionally, the problems of soil erosion and desertification have been intensified over the past few years. The prevailing climatic conditions and the increasing erosion of the soil contribute significantly to the degradation of the soil. Amongst the main causes are intensive cultivation in some parts of the island, land overexploitation, grazing practices, deforestation, inappropriate irrigation practices, the overexploitation of water resources, and forest fires. 

Cyprus accession in the European Union has created a new environment with new elements for agriculture within a strongly competitive environment. The Department of Agriculture aims at dealing successfully with the new situation through the modernization of the agricultural sector with special emphasis on the improvement of productivity and competitiveness, the application of new methods in integrated production, the production of safe products for the consumers, the application of measures for protecting and improving the environment and generally by sustainable development.

[Source: Publicity and Information Office, More information: Department of Agriculture, http://www.moa.gov.cy/moa/Agriculture.nsf]

Water resources

Throughout its long history Cyprus has always been confronted with the problem of water shortage. Cyprus has no rivers with perennial flow, while rainfall is highly variable and droughts occur frequently. Up until 1970 groundwater was the main source of water both for drinking and irrigation purposes. As a result, almost all aquifers were seriously depleted because of over-pumping and seawater intrusion was observed in most of the coastal aquifers.

The water problem and its exacerbation over the years were recognized early enough by the relevant state authorities who designed a long-term programme to combat the problem effectively. After independence, attention was turned to the systematic study and construction of water development works, both for storage and replenishing purposes.

Despite the remarkable work performed in the sector of water development, due to the increasing demand of water, the declining rainfall, the climatic changes and the greenhouse phenomenon, the available quantities of water for water supply and irrigation are not adequate. In order to face the situation, desalination units were constructed to eliminate dependency of the major residential and tourist centres on rainfall. The government water policy is not limited to desalination but also focuses on the exploitation of other non-conventional sources of water, such as recycled water for irrigation of agricultural cultivation and for the replenishment of the underground aquifers.

[Source: Publicity and Information Office, More information: Water Development Department, http://www.cyprus.gov.cy/moa/wdd/Wdd.nsf]

Energy

Cyprus depends almost exclusively on the import of mainly petroleum products. The highest demand comes from the transport sector which absorbs approximately 51% of the final petroleum demand. During the period 1995-2005 the final energy demand has been increasing by an average of 2% annually, while electricity consumption increased by 70%. The contribution of renewable energy sources is limited to 4.6% (2006) of the total energy consumption and comes mainly from solar energy.

[Source: Publicity and Information Office]

Tourism

Tourism is one of the vital sectors of the island’s economy with a revenue of 1.7 billion euro, a contribution of over 12% to the GDP and significant multiplier effects for the economy. The number of tourist arrivals exceeded 2.4 million in 2006, while the ratio of tourists to the population of the island is above 3:1. Tourism constituted the main development tool for recovery following the serious setback brought about by the invasion in 1974. Nevertheless, the large dependence on tourism and the rapid development patterns that followed have led, beyond the significant economic development, to several pressures on the natural and human environment, and as a result the sustainability of the destination.

Regarding tourism, the Strategic Plan for Tourism 2010 is aimed at introducing sustainability on the tourist development of Cyprus, which will revolve around two central pillars, culture and environment. The overall objective is to increase total revenue from tourism by offering quality and value for money to the visitor, coupled with a very modest increase in arrivals.