NICOSIA - Cypriot card holders seem to have been extra careful with their summer spending as many chose to stay at home, resulting in a steep 18% drop in the use of credit cards abroad during the month of August, according to credit card clearance agency JCC.
Following the economic meltdown and the government’s recent austerity measures, Cypriot card holders have also minimised their credit card use at home, which saw a 2% drop to €181 million. For the first eight months ending in August the drop was 8% reaching €1.38 billion.
In August the average value of each transaction fell to €68 from €73 in August of 2012. Sectors heavily affected by the spending decline were retail and accessory outlets, as well as hotels and travel agencies.
JCC figures show more revealing spending patterns abroad, where credit card use saw a significant 18% drop over the same month the previous year.
The average value of each transaction abroad reached €129, from €139 in July of last year. On the receiving end, Cyprus saw a 3% rise in credit card spending by foreigners, with the average value of transactions set at €103.
Cypriot card holders spent approximately €824,000 – down from €900,000 in July 2013 – in the occupied areas and Turkey, mainly on hotels, entertainment, airlines and clothing.
Turkish card holders spent approximately €1.7m in the government controlled areas during August in a total of some 30,000 transactions.