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2024: A Pivotal Year For Tourism And Economic Growth In Cyprus

by THEFUTURE.TEAM

December 2, 2024

Deputy Minister for Tourism, Kostas Koumis, has described 2024 as a milestone year for Cyprus’s tourism sector, highlighting record-breaking achievements in visitor arrivals and revenue. His remarks, delivered on Friday, follow the release of impressive figures by the Statistical Service.

Tourism Reaches New Heights

Koumis expressed satisfaction with the sector’s recovery, noting that arrivals and revenue have returned to, and even exceeded pre-pandemic levels. According to the Deputy Ministry, revenue from January to September 2024 rose by 31.1% compared to 2022 and 15.3% compared to 2019. Arrivals for the January–October period increased by 4.6% from 2023, and 26.7% from 2022, and even surpassed 2019’s figures by 0.8%.

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Additionally, Koumis pointed out that per capita expenditure remains steady, reflecting sustained economic benefits from tourism. Looking ahead to 2025, the ministry’s strategy prioritises investment in rural tourism, environmental preservation, and community-driven benefits.

Resilient Sector and Strategic Success

The Deputy Ministry credited the robust performance to effective market-targeting decisions and the resilience of the tourism sector. Koumis emphasised that Cyprus’s approach to diversifying its tourism offerings and focusing on quality experiences has yielded significant results.

Economic Highlights: Fiscal Surplus and Revenue Growth

Cyprus’s broader economic performance in 2024 also stands out. Preliminary data from the Statistical Service reveals a surplus of €1.43 billion (4.2% of GDP) for January–October, up from €664.8 million (2.1% of GDP) during the same period in 2023.

Revenue Growth

Total Revenue: Increased by 6.6%, reaching €11.69 billion.
Taxes on Production and Imports: Grew by 6.2%, with net VAT revenue rising 7.6%.
Income and Wealth Taxes: Surged by 16%, amounting to €2.9 billion.
Revenue from Goods and Services: Jumped by 29.9%, reaching €822.7 million.

While some areas, such as social benefits and employee compensation, saw increases, the overall fiscal picture remains positive, driven by disciplined spending and strong revenue growth.

Looking Forward

With record-breaking tourism figures and a strong fiscal position, Cyprus is well-positioned for sustainable economic growth. Investments in rural development, community benefits, and environmental sustainability ensure that both the tourism sector and the wider economy will continue to thrive in the years ahead.

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S&P Affirms Cyprus At A- With Positive Outlook

by THEFUTURE.TEAM

March 23, 2026

S&P Global Ratings confirmed Cyprus’s sovereign rating at A- with a positive outlook on March 20, 2026, according to the Ministry of Finance. This decision reflects stable economic performance despite ongoing external pressures, including geopolitical tensions in the Middle East.

Steady Economic Growth Amid Geopolitical Pressures

S&P expects economic growth to continue at around 3%, slightly lower than in previous years but still above the pace seen in many European economies. Fiscal surpluses are also expected to continue, supporting overall stability.

Robust Debt Management And Fiscal Discipline

Public debt has declined in recent years, supported by strong fiscal performance and higher service exports. Improvements in the banking sector, including lower non-performing loans and stable credit growth, have also contributed to a stronger economic position.

Impact Of The Middle East Conflict

Conflict in the Middle East remains the main external risk. However, the positive outlook indicates that Cyprus is considered capable of managing potential shocks. Future rating changes will depend on public finances, economic performance and foreign investment flows.

Government Policy And Economic Management

According to the Ministry of Finance, the rating reflects continued fiscal discipline and economic management. Recent performance has been supported by the handling of earlier shocks, including the pandemic and the impact of the war in Ukraine.

Industry And Sectoral Insights

S&P noted that key sectors remain stable, despite potential pressure from tourism and energy costs. In particular, the banking sector continues to show strong profitability, capital levels and liquidity.

Energy Security And Future Prospects

Energy remains a key challenge, with costs among the highest in the EU. Plans to develop LNG infrastructure and explore natural gas resources are expected to support supply in the medium term. Regional energy projects continue to face geopolitical constraints.