News Local Car rental companies in dire financial state due to pandemic

Car rental companies in dire financial state due to pandemic

Car rental companies in tourist areas estimate lost revenue this year to exceed €120 million compared to the over €135 million amounted in 2019.

Prokopis Georgiou of the Pancyprian Association of Tourist Vehicle Rental Businesses told Philenews that from the so far very disappointing tourism indications, the industry estimates that only 10 to 15% of last year’s revenue will come in. And this amounts to €13-14 million.

Car rental companies in Cyprus maintain a fleet of about 18,000 vehicles.

Their largest turnover is based on tourists from two countries – mainly Britons who rent an average of 53% of available vehicles and Russians with about 19%.

A significant percentage of the rentals will not even “start up” to warm up their engines this year. And this will have significant consequences in the condition of these vehicles with painful maintenance costs for the companies that own them.

In addition to these consequences, the loss of income for gas station owners needs to be accounted for, as well as the state’s losses in terms of tax collection, he added.

Another side effect due to the pandemic is the loss of revenue for car maintenance service businesses whose turnover will also be significantly reduced.

A lot of businesses in the industry are facing potential bankruptcy, he warned.

Top Stories

France recalls ambassador to Ankara over Erdogan comments

  France condemned Turkish President Recep Tayyip Erdoğan’s remarks questioning the mental health of President Macron and recalled its ambassador to Ankara for consultations. The French...

130 cases today, most from private initiative-28 patients in hospital

  One hundred and thirty new Covid-19 cases were announced today, out of 4 thousand 285 tests, taking the total number of confirmed patients to...

Greece approaches four-digit covid cases, 935 today

  The second coronavirus wave is climaxing in Greece as it recorded 935 cases today, the highest number since the second wave begun gathering pace...

Erdogan says Macron needs ‘mental treatment’ over attitude to Muslims

  Turkish President Tayyip Erdogan launched yet another scathing tirade of insults on his French counterpart Emmanuel Macron, saying he needed mental treatment over his...

We are independent, Michaelides tells AG over golden passports

  We are not under anyone's custodianship, the Auditor General Odysseas Michaelides told Attorney General Yiorgos Savvides, who earlier called on his office to stay...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...