Kyrenia
Kyrenia exhibits territorial occupation: entirely under Turkish control since 1974, economy operates on lira with Turkey dependency, unrecognized internationally.
Kyrenia District exists under complete Turkish military occupation since 1974—the only Cyprus district entirely controlled by the unrecognized Turkish Republic of Northern Cyprus. The picturesque harbor town was severed from the Republic of Cyprus's economy, its property rights frozen, its Greek Cypriot population expelled. The economy now operates on Turkish lira, dependent on Turkey for subsidies, administration, and recognition.
The district's economy functions in parallel isolation. Northern Cyprus overall shows 69% services, 22% industry, 9% agriculture—but these statistics measure an economy that no UN member except Turkey recognizes. Tourism comes primarily from Turkey and the UK (exploiting ambiguous property law). Universities serve foreign students attracted by English-language instruction at Turkish prices. The economy is real but unrecognized, prosperous by some measures but structurally dependent.
Kyrenia's case demonstrates how territorial control doesn't equal legitimacy. Greek Cypriot property owners retain legal claims to homes they haven't seen in fifty years. International investment avoids the territory due to legal uncertainty. The beautiful harbor and mountain backdrop attract visitors who overlook the political complexity. Whether reunification ever occurs, Kyrenia's economy will require fundamental restructuring—either integration into Cyprus's eurozone framework or continued dependence on Turkey's volatile lira.