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2025 Sets New Benchmark For Cypriot Tourism: Record Arrivals And Revenue Surge

by THEFUTURE.TEAM

February 27, 2026

Record-Breaking Arrivals And Revenue

Cyprus’ tourism sector reached record levels in 2025, with arrivals exceeding 4.5 million for the first time, according to Deputy Tourism Minister Kostas Koumis. Speaking in an interview on February 26, 2026, Koumis said arrivals increased 12.2% compared with 2024 and 41.6% over three years.

Tourism revenue rose 15.3% year over year during the January–November period, while growth over three years reached 51.1%. Average spending per visitor increased to €822 from €799 in 2024, and daily spending rose 7.2% to €99.5.

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The average length of stay declined by 4% to 8.27 days, but overnight stays are projected to reach 18.5 million, up 3.3% from 2024.

Enhanced Product Quality And Strategic Incentives

Tourism contributed 14% to Cyprus’ GDP in 2025, up from 13.1% a year earlier, reinforcing its role as a key economic sector. Officials estimate overall economic growth at 3.75% for 2025, above the eurozone average.

Between 2023 and 2025, tourism revenues totaled €9.9 billion. During the 2022–2025 period, policy focus shifted toward restoring sector performance and upgrading tourism quality through targeted incentive programs.

In 2025, the ministry launched 13 incentive schemes, including four funded under the Recovery and Resilience Plan, with total funding approaching €20 million. Key measures included:

153 projects aimed at supporting rural, mountainous, and remote areas, with budgets of up to €7 million.
Upgrades to 48 hotels and tourist accommodations, totaling up to €6.9 million in investment.
€1.3 million allocated to improve dining venues and retail outlets promoting traditional products.
Seven approved projects in health and wellness tourism worth about €1.2 million

Additional initiatives included digital transformation programs, support for conferences and sporting events, dive certification projects, beach upgrades, and workshops promoting traditional crafts and local products.

Strategic Initiatives And Specialized Tourism

The Ministry of Tourism is updating the National Tourism Strategy 2035 and relaunching the tour guide training program after a seven-year pause. Digital application processes developed with TEPAK aim to improve visitor experience and operational efficiency.

In specialized tourism, authorities completed a three-dimensional mapping of diving sites and conducted a dedicated study on dive tourism. Future research will focus on health tourism, as well as nature and rural tourism.

Agritourism recorded more than 90,000 arrivals in 2025, up 3% year over year and 40.9% over three years. Cruise tourism also expanded, with passenger numbers rising 104% to 278,000 compared with 136,000 in 2024.

Cypriot EU Presidency And Legislative Initiatives

As Cyprus prepares for its EU Council Presidency in 2026, officials expect more than 30,000 conference participants and the organization of around 250 events.

The ministry is preparing policy proposals linked to the European tourism agenda, including Council Conclusions on Tourism planned for May 2026. Legislative initiatives include draft regulations for dive tourism and proposals to modernize licensing rules for food and entertainment venues.

Cyprus has also signed memoranda of understanding with Israel and Saudi Arabia aimed at strengthening tourism cooperation and supporting long-term sector growth.

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Lithuania And Cyprus Forge Enhanced Partnership In Tourism And Defence

Expanding Cooperation Beyond The Surface

Kristupas Vaitiekūnas highlighted opportunities for closer cooperation between Lithuania and Cyprus during his visit to Nicosia for the informal ECOFIN meeting. Speaking to the Cyprus News Agency, the Lithuanian finance minister said both countries share common challenges and could expand collaboration in areas including tourism, defence and financial services.

Addressing Shared Challenges

Finance Minister Kristupas Vaitiekūnas said Lithuania and Cyprus face similar security and economic pressures despite their geographic differences. Particular attention was given to emerging security threats, including drone-related risks, alongside the importance of maintaining resilient financial sectors. According to Vaitiekūnas, stronger coordination in those areas could deliver long-term economic and strategic benefits for both countries.

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Focus On Fiscal Stability And Energy Security

Discussions at the ECOFIN meeting are expected to focus on Europe’s economic outlook, energy market volatility and fiscal stability. Kristupas Vaitiekūnas warned that instability in the Middle East could continue affecting oil markets and broader economic performance across Europe. Housing affordability was also identified as a growing challenge, with rising property prices in cities such as Vilnius reflecting broader pressures seen across European markets.

Coordinated Energy Strategy And Future Investments

The Lithuanian finance minister also called for a more coordinated European approach to energy and economic resilience. Vaitiekūnas suggested that targeted and temporary policy measures could prove more effective than large-scale structural reforms in addressing short-term pressures. Lithuania continues to increase investment in renewable energy generation and storage infrastructure as part of efforts to strengthen energy independence and begin producing surplus electricity by 2028.

Support For Ukraine And Enhancing Defence Funding

Finance Minister Kristupas Vaitiekūnas reaffirmed Lithuania’s support for Ukraine, describing the war as a broader struggle tied to European security and democratic values. He also backed accelerating Ukraine’s accession process to the European Union, arguing that deeper integration would strengthen regional stability and economic prosperity. Vaitiekūnas welcomed the EU’s SAFE programme, which is expected to support Lithuania’s defence capabilities while contributing additional assistance to Ukraine.

Looking Ahead To A More Unified Europe

Addressing the European Union’s future budget framework, Kristupas Vaitiekūnas said increased funding for security and defence represented a positive development. At the same time, he warned that reductions in cohesion funding and agricultural support could negatively affect purchasing power and long-term European unity. Lithuania is expected to place continued emphasis on Ukraine and regional security ahead of its upcoming EU Council Presidency in early 2027.