GOLD ISSUE 82 JANUARY 21 21, 2018 PRICE €2.00 2.0
GOLD ,668( _ -$18$5< _ THATâ&#x20AC;&#x2122;S ENTERTAINMENT!
T H E
B U S I N E S S
M A G A Z I N E
O F
C Y P R U S
THAT'S A ENTERTAINMENT! How nightlife and leisure in Cyprus are changing
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PRESENTING THE VIEWS OF LEADING FIGURES IN THE SECTOR
CITY OF DREAMS MEDITERRANEAN MELCO CEO Lawrence Ho on his vision for Cyprus and (XURSH·V ELJJHVW FDVLQR UHVRUW
INTERVIEWS Maro Ftelleha Antonis Houry Raffaele Petruzzi Claire Philpott
ETHICS IN BUSINESS Michael McMillan on whistleblowing, dilemmas & temptations
PLUS
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Tax Facts & Figures 2018 - Cyprus
MARIA
THE FIRST NAME IN LO N G -T E R M LOYA LT Y The tax system in Cyprus January 2018
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Š 2018 PricewaterhouseCoopers Ltd. All rights reserved 76 | GOLD | The Business Magazine of Cyprus
ISSUE 82 JANUARY 21, 2018
T H E
B U S I N E S S
M A G A Z I N E
O F
C Y P R U S
CONTENTS 6 | EDITORIAL 8 | BUSINESS BRIEFING
Economic & Business Highlights of the past month.
COVER
10 | MY WAY
STORY
Alex Tsielepis’ management style.
11 | FIVE MINUTES WITH…
18 | 7+$7¶6 (17(57$,10(17
SPECIAL PROMOTIONAL FEATURE 33 | HORECA Industry
Antonis Houry
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12| THEY SAID WHAT?
Some of the most memorable stateTLU[Z THKL I` OPNO WYVÄSL *`WYPV[Z K\YPUN [OL ÄYZ[ TVU[O VM [OL 5L^ Year.
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OPINION 47 | The Future, Then and Now By Dimis Michaelides
FEATURES 14 | Doing the Right Thing
70
16
55 | Tax Guide 2018 7YLZLU[PUN [OL ZLY]PJLZ of 6 leading tax HK]PZVY` ÄYTZ
Michael McMillan, Director of Ethics and Professional Standards at the *-( 0UZ[P[\[L PU [OL <:( VU L[OPJZ PU business.
16 | All In One *SHPYL 7OPSWV[[ VU [OL YLHZVUZ behind the success of Moebius ZVM[^HYL
32| Protecting Your Business’s
44
intellectual Property )` 7LYZH *VZ[H
90
68 44 | Limassol and the City of Dreams 0U[LY]PL^ ^P[O 3H^YLUJL /V *OHPYTHU HUK *,6 VM 4LSJV VU OPZ JVTWHU`»Z €550 TPSSPVU JHZPUV YLZVY[ PU]LZ[TLU[
48 | NPEs – A Long Road Ahead )HURZ T\Z[ ^VYR OHYKLY [V Z[PJR [V [OLPY SVHU YLZ[Y\J[\YPUN HUK 57, reduction targets.
52 | Creating a Level Global Playing
Field /V^ [YHUZMLY WYPJPUN HPTZ [V LUZ\YL [OH[ T\S[PUH[PVUHSZ [YLH[ [OLPY V^U IYHUJOLZ HZ [OL` ^V\SK \UYLSH[LK JVTWHUPLZ
4 | GOLD | The Business Magazine of Cyprus
68 | Inspiration. Motivation.
Transformation. 4HYV -[LSSLOH VU OV^ HUK ^O` ZOL KLJPKLK [V IYPUN 3PML *OHUNPUN 0KLHZ [V *`WY\Z
70 | Sailing into 2018
The challenges and prospects for the year ahead. By Thomas Kazakos.
74 | The Cypriot Business Model and the Global Paradigm Shift )` 4HYH[ @\SKHZOL]
76 | IN GOOD COMPANY
83 | BUSINESS CLASS
*YP[VU . ;VYUHYP[PZ /V^ *HISLUL[ WYVTV[LZ [Y\Z[ 84 | LUNCH WITH GOLD and communication among 5PJOVSHZ 2HYPKLZ its employees.
79 | BOOKSHELF
88 | WHAT’S ON
-P]L YLJVTTLUKLK business titles.
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80 | TIME OFF
90 | A DAY IN THE LIFE
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| EDITORIAL |
GOLD T H E
GOLD ,668( _ -$18$5<
Eat, Drink and Be Merry!
ISSUE 82 JANUARY 21, 21 2018 PRICE â&#x201A;¬2.00 2.0
B U S I N E S S
M A G A Z I N E
O F
C Y P R U S
_ THATâ&#x20AC;&#x2122;S ENTERTAINMENT!
THAT'S ENTERTAINMENT! How nightlife and leisure in Cyprus are changing
00001 >
5 291295 000577
5 291295 000577
00001 >
PRESENTING THE VIEWS OF LEADING FIGURES IN THE SECTOR
CITY OF DREAMS MEDITERRANEAN
INTERVIEWS
MELCO CEO Lawrence Ho on his vision for Cyprus and (XURSH·V ELJJHVW FDVLQR UHVRUW
Maro Ftelleha Antonis Houry Raffaele Petruzzi Claire Philpott
ETHICS IN BUSINESS Michael McMillan on whistleblowing, dilemmas & temptations
PLUS
BUSINE SS BRI :+$7· EFING, 6 21 7 OFF, BOO ,0( OPINIO KS, AND MO N RE
PUBLISHED BY IMH ISSN 1986 - 3543
MANAGING DIRECTOR
T
George Michail
GENERAL MANAGER
Daphne Roditou Tang
here are few places where food and drink are more popular aspects of leisure and entertainment than they are Cyprus. Here, most peopleâ&#x20AC;&#x2122;s idea of a good night out means going to a restaurant or bar, with other forms of entertainment such as concerts, cinema, theatre and so on given far less importance. The number of cafés opening in all towns in recent years has changed the face of many areas and there has always existed a broadly shared idea that, no matter how difficult times may be, businesses dealing in food will survive. For this monthâ&#x20AC;&#x2122;s cover story, we spoke to half a dozen leading players in the local entertainment industry â&#x20AC;&#x201C; by which we mean restaurants, bars and cafés and their many variations â&#x20AC;&#x201C; to see how things have changed over the last decade, how people want to spend their free time and how Cyprus compares with other European countries. You may be surprised to read that, with only one exception, our interviewees believe that the island offers as much as, if not more than, most EU states, particularly when one takes its relatively small size into consideration. Expanding on the broader concept of entertainment, we also talked to Lawrence Ho, the CEO and Chairman of Melco International Development Ltd, about his plans for the City of Dreams Mediterranean integrated casino resort (page 44) and Maro Ftelleha, the founder and organiser of the Life Changing Ideas series of talks by well-known figures as diverse as award-winning author Tamara J. Erickson and former Manchester United star Rio Ferdinand (page 68) and, of course, a regular feature of GOLD is our two pages of recommended cultural events (pages 88-89). Recognising that life is not all play, we also feature articles on shipping (by Thomas Kazakos, page 70), banking (by Theo Imeson, page 48), transfer pricing (an interview with Raffaele Petruzzi, page 52), intellectual property (by Persa Costa, page 32) and computer software (an interview with Claire Philpott, page 16). Finally, as you cannot have failed to notice, the first round of the 2018 presidential election takes place at the end of the month. As noted in our Business Briefing section, some 550,593 citizens are eligible to vote but, given the level of voter apathy in previous elections, it is doubtful whether two thirds of them will bother to â&#x20AC;&#x2DC;exercise their democratic rightâ&#x20AC;&#x2122; as the candidates like to describe John Vickers, the process. Given the standard of the debate during the camChief Editor paign, one can hardly blame people for their lack of interest. All I will say is â&#x20AC;&#x2DC;May the best man winâ&#x20AC;&#x2122;! john@imhbusiness.com
6 | GOLD | The Business Magazine of Cyprus
MEDIA MANAGER
Antonis Antoniou
EDITOR-IN-CHIEF
John Vickers
JOURNALISTS
Artemis Constantinidou, Pan Charalambous CONTRIBUTORS TO THIS ISSUE
Persa Costa, Theo Imeson, Thomas Kazakos, Dimis Michaelides Marat Yuldashev ART DIRECTION
Anna Theodosiou
SENIOR DESIGNER
Alexia Petrou
ASSISTANT DESIGNER
Stephanie Andreou, Marios Kouroufexis PHOTOGRAPHY
Emma Louise Charalambous, Jo Michaelides, Christos Tsekouras, Helena Georghiou MARKETING EXECUTIVE
Kevi Chishios
SALES MANAGER
Neofytos Constantinou SALES EXECUTIVE
Erika Phylakti
OPERATIONS MANAGER
Voulla Nicolaou
SUBSCRIPTIONS
Myria Neophytou PRINTERS
Cassoulides Masterprinters CONTACT 5 Aigaleo St., Strovolos 2057, Nicosia, Cyprus Mailing address: P.O.Box 21185, 1503, Nicosia, Cyprus Tel: +357 22505555, Fax: +357 22679820 e-mail: gold@imhbusiness.com subscriptions: goldsubscriptions@imhbusiness.com www.imhbusiness.com
BUSINESS BRIEFING
BANKING ASTROBANK TO TAKE OVER USB BANK
LEPTOS ESTATES OPENS NEW SALES OFFICE IN LIMASSOL
REAL ESTATE
L
eptos Estates recently opened a new sales and marketing office in Limassol, to enhance the success of the Limassol Del Mar project and work on new developments in the city. The new office is located across from the Four Seasons Hotel next to the branch of RCB Bank on Amathus Avenue. The staff manning the office are fluent in Russian, English and Greek and are ready to provide information on Limassol Del Mar, Blue Marine, Limassol Park, Adonis & Coral Seas villas and the gated resort residences of Aphrodite & Venus Gardens in Paphos.
PEOPLE DESPINA PANAYIOTOU THEODOSIOU
The leading international shipping publication, Lloyd’s List, has selected Despina Panayiotou Theodosiou, CEO of Tototheo Maritime, as ¸6UL VM [OL [VW TVZ[ PUÅ\LU[PHS WLVWSL in shipping”. Lloyd’s List describes her as “a respected, quiet, consistent problem solver with a sharp mind and an ability to articulate issues”. She assumed the role of WISTA International President in October 2017.
IEROTHEOS PAPAPDOPOULOS
It was announced earlier this month that Astrobank is very close to taking over USB Bank, a move that will contribute to the consolidation of Cyprus’ fragmented banking system. Astrobank was set up last year when Lebanese investor Maurice Sehnaouri, heading a group of international investors, took over the operations of Piraeus Bank (Cyprus). Sehnaoui is a shareholder and Chairman of BLC Bank SAL, which is the majority shareholder in USB Bank, and was Chairman of USB Bank until February 2017. Astrobank and USB Bank each have 13 branches in Cyprus.
EIB SIGNS LOAN AGREEMENTS WITH HELLENIC BANK AND CCB
The European Investment Bank (EIB) has signed with Hellenic Bank and the Cyprus Cooperative Bank (CCB) two new loan agreements of €40 million and €25 million respectively aiming to provide Cypriot :4,Z ^P[O ÄUHUJPUN VU MH]V\YHISL [LYTZ CCB CEO Nicolas Hadjiyiannis said that, in 2017, under the scheme the bank granted 116 loans to SMEs amounting to €25 million with an average of €215,000 per loan. Hellenic Bank CEO Ioannis Matsis said [OH[ [OL ,0)»Z JVU[PU\LK Z\WWVY[ JVUÄYTZ [OL IHUR»Z JVUÄKLUJL PU [OL Z[H[L VM [OL Cypriot economy.
Ierotheos Papadopoulos has been appointed head of the Representation of the European Commission in Cyprus, replacing George Markopouliotis, who moves to Greece. Papadopoulos has worked at the European Commission for almost 30 years and has gained L_[LUZP]L L_WLYPLUJL PU KPMMLYLU[ WVSPJ` ÄLSKZ HUK PU political communication. He was previously Head of the Citizens’ Information Unit in the DirectorateGeneral for Communication.
HELLENIC BANK TO SELL NPL PORTFOLIO
MICHALIS P. MICHAEL
Michalis P. Michael was appointed Chairman of the Board of the Cyprus Investment Promotion Agency (CIPA) on January 9. Michael is a Partner at KPMG, Chairman of the Cyprus-Ukraine Business Association and Vice Chairman of the Board of the Cyprus University of Technology. He replaces Christodoulos Angastiniotis, who was elected President of the Cyprus Chamber of Commerce & Industry. 8 | GOLD | The Business Magazine of Cyprus
PANAYIOTIS PANAYI
Limassol-based Chelco VAT Ltd announced the appointment of its Senior VAT Consultant, 7HUH`PV[PZ 7HUH`P [V [OL ÄYT»Z )VHYK VM Directors as of 1 January 2018. Panayi, a seasoned professional with over 10 years of experience in VAT advisory and compliance services, joined Chelco VAT Ltd in 2014. In 2017, he was awarded the prestigious Expert in EU VAT degree.
Hellenic Bank has entered into an agreement to sell a non-performing loan portfolio of predominantly non-retail secured and unsecured exposures to B2Kapital Cyprus Ltd, a wholly owned subsidiary of B2Holding ASA, a Norwegian corporation listed on the Oslo Stock Exchange. The Transaction is part of the Bank’s non-performing portfolio reduction programme that reduces the level of the Bank’s non-performing loans by 6.2% based on non-performing exposures as at 30 September 2017. The Transaction is in line with European Central Bank and International Monetary Fund guidelines on the management of non-performing loans.
Anastasiades visits Saudi Arabia
Motor Vehicle Registrations Up 29.1%
STATISTIC S
T
he total number of vehicle registrations rose by 29.1% in 2017 compared to 2016, according to data released by the Cyprus Statistical Service. Registrations of motor vehicles increased to 43,640, compared to 33,805 vehicles in the same period of 2016. The number of saloon cars increased to 36,067 from 27,956 in 2016, also an increase of 29%. Of these, 13,118 saloon cars (36.4%) were new and 22,949 (63.6%) previously owned. EU member states accounted for 58.1% of the total registrations, while Japan΄s share stood at 28.5%.
550,593
The total number of registered voters for the forthcoming presidential election. Of these, 271,215 are men and 279,378 are women but, perhaps surprisingly, only 9,303 are aged 18-19 years.
IN THE NEWS
P
resident Nicos Anastasiades described his meeting earlier this with King Salman bin Abdulaziz al Saud of Saudi Arabia as “extremely productive and creative”. It was the first official visit by a Cypriot President to Riyadh.
business RTBS Joins Forces with Shiakallis & Co Audit Services
F
ollowing the successful incorporation of the audit firm RTBS Ltd – the result of the merger between Auditchart Ltd and Interquality Ltd in 2017 – the company announced that as from January 1, 2018, it was joining forces with Shiakallis & Co Audit Services Ltd, based in Nicosia. “The merger is closely linked to our growth plans, maintaining at all times our principles and values interrelated to the high-quality services we provide. Addressing the current requirements of the audit profession and the economy in general, we move forward with substantially valuable mergers, offering new services and good practices satisfying the needs of each client individually, based on our qualitative services, integrity, transparency and innovation,” an official press release reads. RTBS is the only Cyprus member of CPA Associates International, a global group of high quality independent firms. The group is one of the largest international associations of independent Audit, Tax and Consulting Firms, with 142 members in 57 countries all over the globe, ensuring the consistent and uniform provision of services from all its members.
Dodoni Cyprus Announces Management Changes
D
odoni Cyprus announced that, as of January 1, 2018, Panicos Hadjicostas has been replaced as CEO by Mikhail Pozdnyakov, previously CFO of the company. Hadjicostas will continue to offer his services as Chairman, focusing mostly on strategic issues concerning both Dodoni Cyprus and the parent Company Dodoni S.A. The new CEO has been with the company since its inception, in the role of CFO, which he will continue to hold. “We are very pleased to announce the transition of Hadjicostas from CEO to Chairman of our Company in Cyprus,” said Tom Seepers, CEO of Dodoni S.A “He has been instrumental in establishing Dodoni Cyprus Limited and has managed to create and organize the most modern cheese production company in Cyprus in a short period of time. I want to thank him for his significant contribution to date and wish him success in his new role where he will continue to support the operation as Chairman and contribute his significant experience in the strategic guidance of the Company. We also wish Mikhail Pozdnyakov every success in his new duties.”
www.goldnews.com.cy | Gold | 9
Alexis Tsielepis MY WAY
Managing Director Chelco VAT Ltd
UNLIKE MOST MANAGERS, HE DOWNPLAYS THE VALUE OF TEAMWORK BUT BELIEVES IN PROMOTING PERSONAL DEVELOPMENT. LEARNING FROM HIS OWN MISTAKES AND THOSE HE HAS SEEN OTHERS MAKE, HE HAS ALWAYS HELD HIS FATHER IN HIGH REGARD. ON THE OTHER HAND, THE ELUSIVE BALANCE BETWEEN PROFESSIONAL AND FAMILY LIFE IS NOT SOMETHING THAT CAUSES HIM PROBLEMS. HE WORKS WHEN HE HAS TO AND SPENDS TIME WITH THE FAMILY IN THE SAME WAY. HAPPINESS HAS MANY COMPONENTS BUT, TO ALEXIS TSIELEPIS, ONE OF THEM IS DEFINITELY A CUBAN CIGAR.
“I “W
am not a believer in collective decision-making, in Boards or Committees and I downplay the utility of teamwork. In my workforce, I uncompromisingly believe in intellect, promoting proactiveness and setting no budget for personal development. I dislike complacency.”
“M
y leadership style has been most influenced by the works of Ayn Rand and her philosophy of Objectivism.”
“I
believe that my greatest professional achievement has been to understand my limits and then surpass them.”
hat has helped me most throughout the course of my career has been learning from my mistakes and avoiding the mistakes I have seen others make.”
“T
he biggest/ most frequent mistake that managers make is misinterpreting the peacefulness of routine as meaning that they have successfully streamlined their work. It is the opposite. If you find that work has become a routine, you have neglected real challenges and overlooked opportunities.”
“I
have not achieved a healthy balance between life at work and at home. I am not sure I can even define what a ‘healthy balance’ should be. I choose to prioritise my work and I am conscientiously happy to do so. When I feel that I need to spend more time with my family, I do.”
“I
understand the word ‘relax’ to mean ‘re-energize’ and I do this best when I have a great night out – this means Sakis on stage, a cigar in hand, shots of masticha on the table and upbeat friends sharing the experience.”
“M
y father, Costas, has always been my benchmark and not just professionally.”
Alexis Tsielepis, BSc, FCA, is widely considy favourite pastimes ered as the foremost expert on are attending a Value Added Tax (VAT) in Cyprus comedy theatre with over 15 years of experience in performance in tax planning and VAT consulting. Athens, visiting He advises businesses on international the Comedy Store VAT matters and lectures at local and international VAT seminars and conin London, jogging in Limassol, strumming my guiferences. He has authored a number tar and sampling Cuban cigars at a cigar lounge.” of tax syllabuses, overviews, articles and a book on matters pertaining to Cyprus and EU VAT.
“M
10 | GOLD | The Business Magazine of Cyprus