I live in Cyprus. I came here with my husband in March 2004 after we both gave up our UK jobs, sold our house and upped sticks.
We've been to Turkey on a couple of occasions too. Having worked in travel and being aware that we could buy rooms on B&B basis in all the main gateways in low season from as little as 3GBP per room per night, and in Cyprus not much less than 8GBP per night, I can quite easily understand the differences between the costs of the 2 holiday destinations....
However, it's not so simple to try compare both holidays side by side because of the different currencies used in either country. Plus, the cost of living in Turkey is cheaper than Cyprus and of course, UK. We still tend to work some of our costs back to what it cost pre euro for shopping etc as the rate was set at approx 1 Euro = Cy Pounds 1.71
The costs are still being calculated at the set rate and dual pricing is still enforced in shops, bars & restaurants etc.
My parents come to visit us for 4wks each November and stay in a private apartment just off the seafront in Limassol near Macdonalds and the cinema. This year, when the cost was calculated into Euros and then recalculated back to sterling - the difference was around an extra 80GBP, just on the accommodation alone.
So, although the apartment prices haven't increased for them (the owner will keep the cost the same as they visit every year), the currency exchange was crippling the cost of self-catering. This time they are staying in a hotel a few minutes further away on Half Board for almost 200GBP less than the cost of the apartment.
We both work and can live here on around 1,500 euros each month (around Cy pounds 880). That's paying rent on a 3 bedroom bungalow with a big front veranda, 2 balconies, 2 bathrooms, a monster of a living room and a separate dining kitchen (in UK we had a 2 bedroom terraced with a small front garden and a backyard). Our council fees (130 euro per year) are paid by the landlord, refuse collection is 70 euros per year and is collected twice weekly and the water is around the same price. Water is being delivered to us from Greece just now as Cyprus has none left! We run 2 vehicles, feed ourselves and 3 four footed friends, manage to take a holiday out of Cyprus at least once each year (Malta each Feb and we're off for a few days to Lebanon & Syria next month) but last year we did 10 days travelling the Nile too. The most expensive things are electricity (similar in running cost to UK) and our internet access (more expensive than UK) as there is no competition as yet. In fact we live on half the salary we used to bring home in the UK!
Wages are poor here and they are even worse in Turkey. So, all becomes relative....
Living here on a day to day basis, we can see some things have gone up when we perform the calculations at the given rate. We daren't even think about converting it back from euros to GBP because it's frightening!
Unless the euro starts to settle, I believe tourists will continue to seek out cheaper destinations so I believe Turkey, Bulgaria & Croatia etc will become very popular.
All we can do in the meantime - is wait and see.
Enjoy your holiday next year and hopefully, we will see you back in Cyprus again sometime in the future.
CwB