Paphos mayor Savvas Vergas said that the company that organises the Pafos Aphrodite Opera festival and other events is deep in debt and owes the municipality the amount of €558,000.
He was speaking during the company's General Assembly meeting, as the mayor is also head of the Pafos Aphrodite Festival company that organises the noteworthy annual opera event at the town's Medieval Castle.
Vergas said that the company owes the municipality the amount of €746,000, has deposits of €73,000 and expects to receive €115,000 from sponsors from last year's event.
"The total debt towards Paphos municipality will amount to €558, 000.
"This includes the amount of €487,000 for the purchase of spectator seats," said Savvas Vergas.
He added that from the total amount owed, €218,000 concern debts from the organisation of the 2013 festival and the remaining, debts from previous events.
The mayor said that the huge sum owed is also due to the fact that there have been cuts in state funding, reductions in ticket sales and less sponsorship money.
Since the 2013 Pafos Aphrodite festival there was a decrease in revenue by 50%.
Specifically, he said the state fund was also reduced from €299,000 to €150,000, while funds from the private sector dropped from €192,000 to just €40,000.
Ticket sales also fell, they dropped from €298,999 in 2012 to €199,000 in 2013.