19%
5%
4%
72%
Direct effect (breweries)
Indirect effect (suppliers)
Hospitality industry
Retail
5 | Induced effects of the brewing sector
The most important economic effect of the brewing sector
involves the benefts of the hospitality sector through beer.
Hospitality sector
The economic impact of beer on the hospitality sector
is assessed as follows :
Approximately 48% (188,200 hectolitres ) of all beer
consumed in Cyprus is sold by the hospitality sector.
28
The average consumer price of beer in Cypriot
hospitality is approximately 8.00 euro per litre, so that
total consumer spending on beer in the hospitality
sector is 150.5 million euro.
Net consumer spending on beer is thus estimated
at 130.9 million euro (using a 15% VAT tariff).
Total employment in the Cypriot hospitality sector
due to beer sales is estimated at 2,800 jobs.
Retail
The importance of the retail sector can be similarly
assessed :
Approximately 52% of Cypriot beer consumption is sold
by supermarkets and other retail companies (203,800
hectolitres).
With an average consumer price of 2.30 euro per
litre (including VAT), total retail consumer spending on
beer is estimated at 46.9 million euro. Total consumer
spending excluding VAT is therefore 40.8 million euro.
With turnover per employee estimated at 191,800
euro
29
(excluding VAT), this means 213 people owe
their jobs to retail beer sales.
Approximately 750 people are employed in the Cypriot
breweries in 2010. The employment in supply sectors due
to the production and sale of beer amounts to 150 jobs.
Around 2,800 jobs in the hospitality sector and 213 jobs
in the retail sector can be attributed to the sale of beer.
The total employment impact due to beer production
and sales in Cyprus is therefore 3,910 jobs. Compared
to 2008, this represents an increase of 558 jobs.
The employment impact of the brewing sector
is presented below:
›
Graph 12.3. / Total employment because of beer : 3,910 jobs
›
Source : Ernst & Young calculation (2011)
(see Annex III for an explanation of the methodology).
6 | Total employment due to beer
28
Source : Cyprus Brewers Association, 2009.
29
Source : Eurostat, statistics on turnover per person employed in retail sector.
The Contribution made by Beer to the European Economy
80