'Price cap would further burden an industry struggling with declining ticket sales'

The president of the Pancyprian Association of Cinema Owners Marios Herodotou has issued a final appeal to the authorities to exclude cinemas from the venues where a price cap on bottled water is to be imposed.

This request comes as part of discussions on the draft legislation aimed at regulating bottled water prices in locations with insufficient competition.

Herodotou said in a statement to parliament that cinemas do not constitute “closed markets” and should therefore be excluded from the proposed legislation.

In the statement, Herodotou explained that cinema patrons are not subject to product checks, including any bottled water they may bring with them, and there are no inspections at cinema entrances or within theatre complexes.

He also said that vendors located outside cinema complexes, whether standalone establishments or within malls, offer a wider variety of products, often in larger quantities, compared to cinema concessions.

Herodotou urged government authorities and lawmakers to support rather than target the cinema industry, which he said is already struggling due to piracy, pandemic-related downturns, and economic challenges.

Moreover, he also called for a legal clarification of the term “closed market” to ensure transparency in the legislation.

The cinema sector, he said, is grappling with declining ticket sales, falling from 1.3 million tickets annually before 2000 to just 500,000 in 2024.

The drop of 150,000 tickets last year was attributed to the closure of a major cinema complex in Nicosia, temporary shutdowns in Limassol, and downsizing in Paphos.

Herodotou stated that cinema operators are burdened with high electricity costs and outdated taxes, such as the colonial-era entertainment tax, which he described as archaic and unique to Cyprus.

In this context, he proposed abolishing this tax and providing financial support to the industry while taking measures to combat digital piracy.

The draft bill, which has been under parliamentary review, proposes a price cap on bottled water sold at locations such as airports, ports, stadiums, beaches, hospitals, theme parks, and cinemas.

The specified bottle sizes include 330 ml, 500 ml, 750 ml, and one litre.

The House commerce committee recently concluded its article-by-article review of the legislation with energy and commerce minister George Papanastasiou in attendance.

The bill is expected to be presented to the plenary for a vote early next month.

It should be noted that some MPs expressed their intentions to propose amendments to provisions they find contentious.

Akel MP Andreas Pashiourtides called for the price cap to apply to all locally produced bottled water and insisted that any future changes to the legislation be subject to parliamentary approval.

Under the proposed law, the commerce minister will issue decrees determining the locations and products subject to the price cap.