Cyprus To Establish Special Arbitration Court For Economic Disputes

At the initiative of the Cyprus Bar Association, plans are underway to create a Special Arbitration Court dedicated to economic disputes. This initiative aims to significantly enhance both the judicial and economic landscape in Cyprus.

The proposal, which needs approval from the Ministry of Justice, the Council of Ministers, and the House of Representatives, will be officially implemented upon passing these stages. Michalis Vorkas, President of the Cyprus Bar Association, stated that the objective is to establish Cyprus as a regional centre for resolving economic disputes of any scale, without restrictions. This court will cater to foreign nationals with permanent residences in Cyprus or abroad, as well as Cypriots involved in financial disputes.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Mr. Vorkas emphasized that disputes will be resolved swiftly, conserving valuable court time. The arbitrators, chosen by the Cyprus Bar Association, will be specialized legal professionals from both Cyprus and abroad.

Economically, Cyprus stands to benefit as foreign nationals opting for the Special Arbitration Court will contribute foreign exchange and significant financial inflows.

The final decisions of the Special Arbitration Court will be recorded in the District Courts, thereby gaining full judicial authority.

Functionally, the Arbitration Court will resemble the Court of Arbitration for Sport (CAS) in Lausanne, an international semi-judicial body established to resolve sports-related disputes.

The Future Forbes Realty Global Properties

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

by THEFUTURE.TEAM

February 13, 2026

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

Breaking news