The partition of Cyprus
Apart from the above problems, the partition of Cyprus had a very destructive effect on the company which at the time possessed more than 95 per cent of the market. Since most of the swimming pools were in Famagusta and a significant number in Kyrenia, the partition had a negative effect on the financial position of the firm. Machinery that had a value of CP5000 had been delivered to the Dome Hotel in Kyrenia and never been paid for.
This is only one example of how destructive the partition was for the business. Nevertheless, in the aftermath, many hotels were built in Larnaca, Limassol and Paphos and the firm recovered the losses. Most of the problems were overcome and the firm not only survived, but excelled. For many years it was operating in a monopoly market and this enabled the firm to enjoy the advantages of economies of scale.