Home News News Archive News Ship management revenues increased to 4,9% of Cyprus' GDP during the first half of 2011 despite the economic crisis.
Ship management revenues increased to 4,9% of Cyprus' GDP during the first half of 2011 despite the economic crisis. PDF Print E-mail

Nicosia, Jan 23 (CNA)

According to Ship Management Survey, released on Monday by the Central Bank of Cyprus, the majority of revenues came from Germany (57%). There were also significant contributions from Switzerland (11%) and Latvia (7%). These figures do not represent the countries of the beneficial ship owners whose ships are managed by companies based in Cyprus. They merely represent the countries from where the payments were transferred to Cyprus.

Most companies in the sector generate revenues within the range of 1 million - 10 million euro, but there are a few very large companies with revenues exceeding 27 million half-yearly. As a result, the sector is relatively concentrated with 24% of the companies generating 83% of the sector's total revenues.

Total ship management revenues from non resident ship owning companies for the first half of 2011 were 431 million euro, which corresponds to 4,9% of Cyprus' GDP. There was a marginal increase in revenues during the first half of 2011 from 431 million to 432 million euro.

Despite the economic crisis, the ship management sector continued its stable performance in 2011, since it depends more on foreign than domestic income. It is expected that revenues will increase further during the second half of 2011.

Ship management services are offered almost exclusively to ships with foreign flags. Given the size of Cyprus' shipping registry, it is important to increase the sector's share in this segment. Most of the sector's revenues come from the management of ships under foreign flags. Only 9% of the revenues corresponded to ships under the Cyprus flag for the first half of 2011. German ship owners are the main sources of revenues with 65% in the first half of 2011.

The Ship Management Survey is conducted biannually by the CBC's Balance of Payments Section. The survey was launched in March 2009 and covers residents of Cyprus who provide ship management services to ship owning companies registered both in Cyprus and abroad.

The survey collects data from a representative sample on the financial transactions (revenues and expenses) carried out between resident ship management companies and non-residents of Cyprus. In particular, the survey requires, among other things, the submission of revenues by type of service provided to non-resident ship-owning companies, revenues received from non-resident ship owning companies, by country from where the revenue is derived, revenues by country of flag registration of the ships, whose management is performed by the resident ship management companies, revenues by country of residence of the ship owner, whose ships are managed by the resident ship management companies and payments made by the resident ship management companies, by country of residence of the recipient.