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Cyprus Tourism Strategy 2035: A Model For Year-Round Growth And Diversification

by THEFUTURE.TEAM

Transforming The Tourism Landscape

Cyprus is entering a decisive decade for its tourism industry. Government officials, led by the Deputy Ministry of Tourism, have set a target to increase annual arrivals from 4.04 million in 2024 to 5 million by 2035. The strategy does not aim to intensify the summer peak, but rather to distribute visitor flows more evenly across spring and autumn, gradually positioning the island as a true year-round destination.

Revised National Tourism Strategy

At a recent Cabinet meeting, the government approved the updated National Tourism Strategy, now extended to 2035 and built upon the original 2030 framework adopted in 2020. The revised plan prioritizes sustainable growth, green transition policies, digital transformation, infrastructure upgrades, and improved accessibility. This integrated direction is designed to align Cyprus with shifting global travel patterns while safeguarding the country’s environmental and cultural heritage.

Key Insights From Deputy Tourism Minister Koumis

Following the Cabinet session, Deputy Tourism Minister Kostas Koumis emphasized that the strategy focuses on improving the quality of the tourism product while ensuring balanced and sustainable expansion. He highlighted three core priorities: advancing digital capabilities, reducing seasonality, and strengthening Cyprus’ profile as a year-round destination. The United Kingdom remains a stable cornerstone market with an approximate 30% share, while the United States, China, and India are identified as high-potential markets for long-term outreach.

Redefining Seasonality And Revenue Streams

The strategy projects a gradual reshaping of seasonal travel patterns. Arrivals during the traditionally quieter months from January to April and November to December are expected to rise from 1.06 million in 2024 to 1.80 million by 2035, outpacing growth in the peak summer. Overnight stays are forecast to increase from 34.8 million to 46.8 million over the same period, largely driven by stronger winter demand and extended stays.

Enhancing Tourist Spending And Economic Impact

Strategic measures also aim to elevate daily tourist expenditure. For instance, the average daily spending during the winter period is expected to increase from €80 in 2024 to €85 in constant 2024 prices by 2035, while summer spending could rise from €96 to €106. If these targets are met, tourism revenues are forecast to climb from €3.21 billion in 2024 to €4.58 billion by 2035, underscoring the economic potential of a diversified tourism model.

Targeted Market Segmentation

An extensive review of international travel trends has shaped several priority segments:

  • Over-50 / Silver Tourism: a rapidly expanding demographic with higher spending power and flexible travel schedules.

  • Sun and Sea / Families: family travel represents roughly 30% of global tourism flows and continues to grow steadily.

  • Destination Hoppers: multi-country travelers motivated by improved regional connectivity and joint tourism packages.

  • Domestic Tourism: local travel that supports rural, mountain, and short-break hospitality sectors.

  • Long-Stay Visitors: travelers seeking extended winter residence in warmer climates.

  • Working From Anywhere / Bleisure: the combination of business and leisure trips driven by remote and hybrid work models.

Market Categorization And Strategic Focus

To refine outreach efforts, the strategy groups international markets into four tiers:

  • Category A – Stable Markets: The United Kingdom remains the primary anchor market.

  • Category B – Steady Growth: Poland, Germany, Israel, France, and Nordic countries, supported by improving connectivity and income levels.

  • Category C – High Growth Potential: Benelux, Romania, Switzerland, Austria, Hungary, Greece, Serbia, Czechia, and Bulgaria, where continued engagement can unlock stronger flows.

  • Category D – Conditional Opportunities: Markets such as the USA, China, Canada, UAE, Australia, South Africa, and several Southern and Eastern European countries, where growth depends on connectivity, visa facilitation, and promotional investment.

A Strategic Roadmap For The Future

The 2035 tourism strategy functions as a long-term roadmap that combines digital innovation, infrastructure development, sustainability principles, and diversified market outreach. By capitalizing on its climate, culture, and geographic position while adapting to evolving traveler expectations, Cyprus is aiming to build a resilient tourism model capable of delivering steady economic returns throughout the entire year rather than only during the summer peak.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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