Tourism in the country has been reduced during the last 12 months as the recession continues to grip the UK. Cyprus has struggled to attract budget travelers who instead have opted for cheaper options. Cyprus has turned tables by taking advantage of the expensive resort image.

The Cyprus Tourism Organization (CTO) has shifted the fulcrum of its strategy to attract the higher end of the luxury holiday market as it is expected to be one of the “big growth areas” in global tourism in 2009. Traditionally, the country has been seen as an inexpensive option for holidays, but now it is planning to attract wealthy holidaymakers as well as families. The government has put a lot of new investment into restaurants and five star hotels with millions of Euros have been invested to accommodate the new clientele.

CTO has also invested lot of money in creating luxury holiday packages and sustainable tourism initiatives. Photis Lambrianides, the commercial director of Olympic Holidays has stated that sales will increase despite the slow start in 2009.

According to Travel weekly, Cyprus has long realized that attracting more affluent travelers, who place importance on quality of product rather than price, is key to bumping up numbers.

The opening of new office of The Sotheby International Realty network signifies Cyprus’s appeal as an investment market is spreading across the world. Cyprus is no longer just a hotspot for investors from Western Europe and its reputation is rapidly growing in places such as US and Russia.

Recently The Sunday Mail described Cyprus as a hotspot for overseas investors, including holiday home buyers who want a residence for individual use. The publication added that people could enjoy historical sites, traditional countryside and Cyprus’ fantastic beaches all year round thanks to the favourable weather conditions. Michael R. Good, the CEO of The Sotheby International has said that their new development in this region comes at the time of the supreme economic growth for the region due to the booming tourist industry.

Cyprus’ appeal as a popular year round holiday destination makes the island a potentially lucrative market for rental property investors. Potential property investors are pleased to hear that house prices are raising by 15 and 20 per cent every year, those who have already invested stand to make a profit if they sell up in future.

Theo Vassiliou, general manager of The Sotheby International has said that their company is distinctively positioned to take lead of the luxury real estate growth in the eastern Mediterranean region.

This comes after the SaveBorrowSpend website predicted Cyprus could see a property boom and there would be price rises of up to 35 per cent this year.

The Independent has reported that this substantial housing market growth has led to concern at the Central Bank of Cyprus. Nevertheless, Citigroup analysts has found that the high-end prices in Nicosia and Limassol is of EUR 2,550-EUR 2,900 per square meter and these are comparatively not high by European standards. In Paphos, prices are EUR 4,500 per square meter and even at Aphrodite Hills, considered as luxurious Cypriot property place, prices for apartments is EUR 5,000 and fro villas is EUR8,500 per square meter which is well below the top end luxury properties in Europe according to Citigroup analysts. Experts predict that Property purchasers would benefit from substantial capital growth if they enter the market early, as the future sale price will be much higher than its current value.Cyprus offers attractive and reasonably priced properties in highly desirable areas and it bucks the current trend for falling house prices. Home Move website stated that house prices in Cyprus increase was impressive last year and values are set to keep growing. This suggests that Cypriot property owners could collect high returns should they choose to sell their property on at a later date.