CYPRUS' PROPOSAL FOR BFIF FUNDS

UNCLAS NICOSIA 000003

SIPDIS

SIPDIS

STATE FOR EB/CBA (DENNIS A. WINSTEAD),EB/EX AND EUR/SE

E.O. 12958: N/A
TAGS: BEXP ABUD AMGT ETRD ECON EINV BTIO CY
SUBJECT: CYPRUS' PROPOSAL FOR BFIF FUNDS

REF: STATE 159597


1. Summary: Embassy Nicosia requests BFIF funding to: 1) reserve
space at the 2008 Cyprus Travel show to promote tourism to the U.S.
as well as to cover costs for related advertising and printing of
promotional materials; 2) cover travel expenses for two FSN's for
BSP and E-menu training, as well as training on the new TMS system,
to FCS Cairo, Egypt; 3) promotional and advertising costs for the
new "Business Service Provider" program and the BuyUSA Cyprus
website; 4) send the Economic/Commercial Officer to Athens to
participate in the planned Greece-Cyprus joint Healthcare Trade
Mission from the U.S. in late May; 5) send Economic/Commercial
Officer to an International Trade Officer Conference in Brussels in
March; 6) in cooperation with the newly-formed Cyprus Investment
Promotion Agency (CIPA,) create information kits and market
assessments alerting the U.S. business community to business and
investment opportunities in Cyprus. End Summary.


2. Embassy Nicosia requests funding to cover costs of participation
at Cyprus' annual Travel Show (May 9-11, 2008) for the purpose of
promoting tourism to the U.S. Moreover, post requests funding to
advertise its participation and to print brochures and other
promotional material.

a) Justification: given the Euro's appreciation against the US$ and
Cyprus having joined the Eurozone on January 1, 2008, this is an
opportune time to promote tourism to the U.S. from Cyprus. This
will also give us an opportunity to create closer relationships with
tour operators, airlines, and the media for ongoing promotion of the
U.S. to Cypriot travelers as an attractive tourist destination. We
need to alert Cypriot travelers that the U.S. is a lower-cost
alternative to the traditional Cypriot shopping and/or gambling
expeditions to the U.K.

b) Anticipated outcomes: Statistics show that of 844,640 trips
taken abroad by Cypriots in 2006, only 10,779 were to the United
States. Conversations with local travel agents indicate that there
is significant potential for growth. In cooperation with the DOC
Travel and Tourism team and tourism promotion centers throughout the
U.S. - and through our promotional effort here - we anticipate that
raising awareness of the relative bargain prices for goods and
services in the U.S. will generate a significant increase in Cypriot
outbound tourism.

c) Estimated costs: Booth costs at Travel show (for 15m2): $2,372
($158.125 per square meter / conversion rate is CY#1 = USD 2.50);
Advertising costs: 4 half-page ads in the highest circulation
newspaper x $2,943.60 (2000) each = $11,774; printing of brochures
and other promotional material: estimated $2,000. Total estimated
cost: $16,146.

d) Point of contact: If you wish to get more information on this
project, please contact the Commercial Specialist, Ms. Ephie-Yvonnie
Charalambidou at charalambidouey@state.gov or +357-22-393362 or
Economic/Commercial Officer Mr. James Carouso at carousoja@state.gov
or at +357-22-393359.

e) Success criteria will include an increased number of
high-spending tourists visiting the U.S. from Cyprus.


3. Post requests funding to send two FSNs to FCS Cairo, Egypt for
training with the regional IT programs manager on the new TMS
system, for the "Business Service Provider" program, and for E-menu.
In association with upgrading our online capabilities, Post also
seeks funds to cover promotional and advertising costs for our
recently-inaugurated "Business Service Provider" program and the
BuyUSA Cyprus website.

a) Justification: The BuyUSA Cyprus website is getting an increasing
number of hits (up 73 percent) and page visits (up 94 percent) from
December 2006 to December 2007. To continue this momentum, we
recently introduced the "Business Service Provider" program to our
website. However, the two FSN's working on the website require
additional training on how to enter information on the BSP program
and on the TMS system in view of its scheduled changes. In just one
month, we have received over twenty (20) applications from Cypriot
businesses asking to participate in our BSP program. We want to
ensure that these companies will get the most out of their
investment in our program. Moreover, we would like to advertise our
website and the services we offer, especially the BSP, in order to
attract more U.S. and Cypriot visitors to our site.

b) Anticipated outcomes: The training will help the FSN's handle the
TMS and BSP systems more efficiently and effectively. A promotional
campaign will attract more U.S. and Cypriot visitors to our site and
increase participation in our BSP program as well as inform U.S.
businesses of the services we offer.

c) Estimated costs: Ticket costs to fly roundtrip from Cyprus to
Cairo - approximately $435 per person (435x2=870); Per Diem, per
day: $228 per person (including hotel accommodation and M&IE
(228x4=912x2=1,824); Total estimated cost for a four-day trip for
both FSN's: $2,694

Funds to cover advertising costs (banner headlines on websites,
small newspaper ads, mailing of information on BSP program and
website): estimated cost: $2,500.

Total estimated cost for both: $5,194

d) Point of contact: If you wish to get more information on this
project, please contact Commercial Specialist Ms. Ephie-Yvonnie
Charalambidou at charalambidouey@state.gov or +357-22-393362 or
Economic/Commercial Officer Mr. James Carouso at carousoja@state.gov
or at +357-22-393359.

e) Success criteria: FSNs are not yet fully proficient in the TMS
and BSP systems and this training would help them become less
dependent on other posts and more efficient in using the latest FCS
systems. Advertising the website and BSP program would assist Post
in raising money to use for other commercial promotion purposes.

f) Post will ensure that the FSNs remain adequately trained on the
TMS system.


4. Post requests funding to send the Economic/Commercial Officer to
Athens to attend a joint (Greece/Italy/Cyprus) FCS-sponsored trade
mission for the healthcare sector May 28-31, 2008. This trade
mission is led by our Partner Post in Athens and is seen as part of
our joint efforts to promote business opportunities in Cyprus to
U.S. companies and businesspersons.

a) Justification: Since this is our first joint trade mission with
Athens, and healthcare is a targeted growth sector for the Cypriot
government, the Nicosia FCS Officer should participate in the
mission and escort the participating Cypriot healthcare companies.
This joint trade mission represents a new level of cooperation and
synergy between Nicosia and its Athens Partner Post.

b) Anticipated outcome: Precedent-setting co-effort with our Partner
Post leading to U.S. companies and businesspersons gaining increased
awareness of the Cyprus market in a sector of importance to both
economies.

c) Estimated costs: Ticket cost to fly roundtrip from Cyprus to
Athens - approximately $500 per person; Per Diem, per day: $325
($325x6=1,950).
Total estimated cost for a six-day trip: $2,450

d) Post point of contact: If you wish to get more information on
this project, please contact Commercial Specialist Ms. Ephie-Yvonnie
Charalambidou charalambidouey@state.gov or +357-22-393362 or
Economic/Commercial Officer Mr. James Carouso at carousoja@state.gov
or at +357-22-393359.

e) Success criteria: A closer working relationship between Nicosia
and our Partner Post and increased awareness of business
opportunities from the U.S. in the Cyprus market.


5. Post requests funding to send the Economic/Commercial Officer to
Brussels on a two-day International Trade Officers Conference in
March. This conference is held to update trade officers posted in
EU capitals on the background and current state of play of various
international trade issues and to provide an opportunity to the
trade officers to discuss those issues both with specialists most
directly involved and with other regional trade officers.

a) Justification: The conference will give the Officer the chance to
meet and discuss U.S.-EU related issues with other trade officers
from around the world and be better equipped to provide answers to
important trade questions raised by host country officials.

b) Anticipated outcome: increased ability of the Econ/Commercial
Officer for better interaction with host country counterparts.

c) Estimated costs: Ticket cost to fly roundtrip from Cyprus to
Brussels - approximately $1000 per person; Per Diem, per day: $364
($364x4=1,456 - including days for travel to and from Brussels)
Total estimated cost: $2,456

d) Post point of contact: If you wish to get more information on
this project, please contact Commercial Specialist Ms. Ephie-Yvonnie
Charalambidou charalambidouey@state.gov or +357-22-393362 or
Economic/Commercial Officer Mr. James Carouso at carousoja@state.gov
or at +357-22-393359.


6. Post seeks funding to create information kits and market
assessments for distribution (in hard copy and electronic format) -
in cooperation with the newly-formed Cyprus Investment Promotion
Agency (CIPA) - to better inform U.S. entities of business and
investment opportunities in Cyprus.
a) Justification: The CIPA is a newly-formed organization created to
promote Cyprus as an investment center. By working closely with
this organization and its executives from its beginning, we hope to
be able to influence CIPA's policies and acquire (and disseminate)
information about business and investment opportunities in the most
timely manner.

b) Anticipated outcome: Increased information flow to the U.S.
business community regarding Cyprus resulting in an increase in U.S.
business activity here.

c) Estimated costs: $3,000 to include printing/putting together
information kits/mailing costs.

d) Post point of contact: If you wish to get more information on
this project, please contact Commercial Specialist Ms. Ephie-Yvonnie
Charalambidou charalambidouey@state.gov or +357-22-393362 or
Economic/Commercial Officer Mr. James Carouso at carousoja@state.gov
or at +357-22-393359.

SCHLICHER