Incoming tourism is a significant defining factor of demand the for short-term car leasing business, an ICAP Group survey said on Thursday. The survey, however, noted that for the long-term car leasing business a significant defining factor was economic growth, which leads to higher demand.
Stamatina Panteleou, director of Economic-Sectorial Surveys in ICAP Group, said the car leasing market value grew by an average annual rate of 8.0 pct in the period 2001-2008, but slowed ever since.
However, record tourist arrivals in the last two years led to a recovery of the market, with the value of the car leasing market rising 5.8 pct in 2015, from 2014, while car fleet grew 7.7 pct in the same period. In the short-term car leasing sector, market value grew 8.6 pct in 2015, after a 13.9 pct rise in the previous year. In the long-term car leasing sector, market value grew 4.8 pct in 2015.
The survey showed that a 52 pct of companies in the sample ranked in the high credit risk zone in 2016, while a 42 pct ranked in the medium credit risk zone, a slightly increase compared with 2015.