Military Bases

[Lysos]

The UK government has announced that Lord Ashcroft is to head a review of the military bases in Cyprus. If there are cuts (which I think there will be, but I would expect Akrotiri to remain operational in some way) what will be the effects on the local economy ?. Obviously, local job losses, loss of spending power of the military personnel & dependents, loss of rental returns for private dwellings used as hirings (not too many of those, I would have thought.) Additionally, a reduction in visitors - most personnel have family & friends to visit.

Big question, if there are large scale cuts, what will happen to the housing stock i.e. married quarters ?.

My guess is that eventually, in both Cyprus & Germany, the married accompanied element will be reduced to virtually zero, and bases will be manned by unaccompanied personnel on 6 month tours of duty; far more cost effective.

All in all, quite an impact on the economy.

 

[Veronica]

Perhaps the find of a huge natural gas field off the coast of Cyprus will more than compensate for the withdrawal of military personnel.

 

[Lysos]

Has that been confirmed as commercially viable ?. Doesn't Egypt have a claim on that as well ?.

 

[Veronica]

They believe it will be the biggest find of natural gas for a long time and it is the Cyprus side of the international line.
Of course you get different stories from different people and we can only wait and see what happens. If everything we have heard is right it will bring a lot of investment to the island.

 

[Lysos]

Good news, indeed, especially with the decline in tourism.

 

[Veronica]

Despite talk of a decline in tourism Paphos is swarming with white bodies with bellies hanging over their shorts. Yuk!!!!!!