THE COMMERCE and Interior Ministers yesterday sent a joint plea to the tourism industry to take advantage of the government’s newly announced town-planning incentives, as part of efforts to boost the ailing sector.

Interior Minister Neocles Sylikiotis, along with Commerce, Industry and Tourism Minister , Antonis Paschalides, yesterday presented the package of extra support measures that approved by the Cabinet on Tuesday.

The package is part of a €500 million broader plan to help the tourism and construction sectors, which have been adversely affected by the financial crisis.

Among the incentives offered is a five per cent increase in the building coefficient – otherwise known as floor area ratio (FAR). The aim is to help hotels improve their services, by using the added space to create restaurants, bars or spas.

The package also provides the withdrawal of certain low-rated hotels.

“I would call on businessmen who operate in tourism development to take advantage of the town-planning incentives the state is offering them and use them correctly to the benefit of our tourism industry, but also the broader Cypriot economy,” said Sylikiotis.

The minister added that the government’s desire was to boost the development industry; especially those sectors that were affected most by the economic crisis.

Sylikiotis said fully implementing the government’s tourism policy – which is part of the new package’s aims – is of special importance. “This chapter provides policies that are absolutely necessary, such as implementing an older Cabinet decision over town-planning incentives for the withdrawal of low-rated hotel units; or providing new town-planning incentives to support hotels’ efforts to upgrade their services.”

Sylikiotis informed the Cabinet on the new town-planning incentives last Tuesday, while the full details will be published in the Republic’s Official Gazette tomorrow.

However, this doesn’t mean the plan can be put into action immediately, as the law provides a four-month period for the submission of objections by those affected.

Commerce Minister Paschalides said the measures mirrored the government’s will to support tourism. He said the main objectives of the incentives were to improve the industry’s competitiveness and improve the services offered, as well as ensure a harmonious coexistence between housing and tourism developments.

“I too would like to send a plea to hoteliers to benefit from these incentives as soon as possible, without delay,” said Paschalides. “I am certain that with the support of the ministries and the entire state mechanism, this will benefit the tourism industry, hoteliers and definitely Cyprus’ economy.”