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Grant Scheme Announced To Strengthen New Business Activity In British Bases Areas

A second announcement of a grant scheme to strengthen new business activity in areas within the British Bases has been approved by the Council of Ministers following a proposal by the Minister of Energy, Trade and Industry George Papanastasiou.

According to a press release by the Ministry, the scheme, which was prepared for equal treatment of citizens of the Republic, aims to develop, support and promote entrepreneurship, placing an emphasis on specific groups, such as young people and women, who wish to be active in business in the sectors of manufacturing, services and tourism, making use of their knowledge, experience, training and talents.

The grant will be up to 70% for young men and women aged 18-29 years, while for men aged 30-50 and women aged 30-55, it will be up to 60%. The grant is calculated on the cost of the eligible costs of the investment (equipment, special facilities, construction, purchase and renovation/configuration of building spaces, promotion and other expenses), with a maximum eligible budget per company of €120,000.

The total budget to be allocated for the needs of the 2nd announcement of the scheme amounts to €500,000 and comes from the state budget.

Those interested can obtain the scheme guide, which contains all the details, the list of supporting documents, as well as other required forms or documents, from the Ministry’s website and, particularly, from the website of the Industry and Technology Service.

It is noted that the applications/proposals from the beneficiaries will only be submitted through the electronic system of sponsorship plans of the Ministry of Energy, Trade and Industry, in a specific period that will be determined in the relevant call for proposals, which will be announced in the next period.

For more information, those interested can contact the relevant officials at 22867178/156/317/109/194.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

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.

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.

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