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Tourism, Environment and Profitability: The Case of the Paphos Holiday Complex

Harvard Institute for International Development, Development Discussion Paper No. 330, November 1989.

57 Pages Posted: 16 Apr 2001 Last revised: 14 Dec 2016

Savvakis C. Savvides

Queen's University - John Deutsch Institute for the Study of Economic Policy; Cyprus International Institute of Management (CIIM)

Andreas Andreou

C.N.H. Capital Markets Ltd.

Glenn P. Jenkins

Queen's University - Department of Economics; Eastern Mediterranean University

Date Written: November 1, 1989

Abstract

This paper presents a project evaluation study in which the methodological tools taught in the H.I.I.D. Program in Investment Appraisal and Management are applied. It examines the feasibility of a hotel project in Cyprus covering all aspects of investment appraisal. It begins with an analysis of the market for tourism in Cyprus and a definition of the project concept. The financial appraisal analyses the project cash flow from the total investment and owners' perspectives. The economic appraisal of the project is completed after working out the economic discount rate, foreign exchange premium and a series of economic conversion factors for Cyprus. The distributive analysis identifies the project externalities and shows how these may be attributed to various economic groups. Sensitivity and risk analysis further enhances the appraisal by identifying and measuring the level of uncertainty surrounding the projected results. Finally, the study considers the impact of the project on the environment.

Keywords: Project Appraisal, Environment, Economic Analysis, Risk Analysis

JEL Classification: G31, H43, C15, D62, O13

Suggested Citation

Savvides, Savvakis C. and Andreou, Andreas and Jenkins, Glenn P., Tourism, Environment and Profitability: The Case of the Paphos Holiday Complex (November 1, 1989). Harvard Institute for International Development, Development Discussion Paper No. 330, November 1989.. Available at SSRN: https://ssrn.com/abstract=266722

Savvakis C. Savvides (Contact Author)

Queen's University - John Deutsch Institute for the Study of Economic Policy ( email )

Canada

Cyprus International Institute of Management (CIIM) ( email )

P.O Box 20378
Aglandjia
Nicosia, CY-2151
Cyprus

Andreas P. Andreou

C.N.H. Capital Markets Ltd. ( email )

5 Limassol Avenue
2nd Floor
CY-2112 Nicosia
Cyprus
+357-2-719999 (Phone)

Glenn P. Jenkins

Queen's University - Department of Economics ( email )

99 University Avenue
Kingston K7L 3N6, Ontario
Canada K7L 3N6
613 533 6556 (Phone)
613 533 6818 (Fax)

Eastern Mediterranean University

Gazimagusa, Mersin 10
Turkey

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