Cyprus checkpoints reopen, but businesses are cautious

As checkpoints are expected to reopen on Friday, business in the south is happy, but cautious.

“It’s a good thing, but we will see what happens,” said the owner of restaurant just off Ledra Street, site of what has been the busiest crossing.

The two leaders on Wednesday announced an agreement to allow the reopening of the checkpoints.

The crossings will open on Friday, but will be restricted as follows: Level 1 (green) no restrictions, level 2 (orange) seven day negative rapid or PCR test and, finally, level 3 (dark red) closed to the general public.

As of June 4 the level 2 (orange) status will apply to all crossings. Authorities are still discussing how to manage vaccinations as proof for crossings; the issue is that most in northern Cyprus have been vaccinated with Chinese vaccines that are not approved by the European Medicines Agency.

Retailers indicated some satisfaction with the change, while, for B2B enterprises, the pandemic and checkpoint closing had in no way interrupted their activities.

Marios Antoniou, general secretary of the Cyprus Association of Retailers, hailed the change.

“In terms of retail, it’s a positive development. As you understand, this helps retail businesses move their products. Beyond the effects on workers who cross from one side to the other for professional reasons, there is also retail and it helps a lot in that regard.”

But Antoniou said retailers were cautious, awaiting developments.

However, with the improving epidemiological picture, people are more focused on planning their holidays and generally more inclined to spend on leisure, restaurants and entertainment. Retail is not a priority at this point, I believe. We are seeing a switch away from DIY and home-focused spending so there will be a transition to entertainment and leisure. But we will be monitoring the situation in retail. We may see an improvement in shoes and clothing while the DIY sector may see a decline in sales,” Antoniou added.

In fact, shops on Ledra Street, most affected by the change, were surprisingly unenthusiastic.

“Anything that can help commerce and retail is welcome of course and it should have a positive impact in that regard. In terms of public health, it remains a question,” the manager of the shop “All Senses – Trokoudes told the Cyprus Mail.

As for B2B enterprises, according to the Chamber of Commerce, a system had been elaborated when the crossings were first closed which enabled them to continue operations almost as normal.

“We devised a simple system that operated throughout the crisis period,” explains Leonidas Paschalides, director of the International and Public Relations.

“To give an example: A merchant with a load of shoes would drive a truck full of merchandise to the Agios Dometios crossing. He/she would pass the checkpoint, and drive halfway to the other side, then leave the truck and the requisite documentation, and walk back.

The merchant on the northern side would then drive to the truck, leave the payment, load his/her own truck with the merchandise, and drive away. Then the first merchant would collect the truck and the payment.”

This system worked without a hitch throughout the entire crisis period, Paschalides said, and without a single complaint from either side.

And this is why trade continued in 2020 between both sides. “Volumes were not as high as 2019, Paschalides noted.

Nonetheless, €700,000 in merchandise was traded from the Republic to the north, and goods worth €4.5 million went from the north to Cyprus.

At least an organisation was just plain happy about checkpoints reopening: The Home Cafe, which sits smack in the middle of the neutral zone between north and south, welcomed the move. “This should get our business started again,” said Maria, the cook at the restaurant. “We’ve not seen many diners for some time. Now they’ll be back again.”