EIB To Open Offices In Cyprus: A Strategic Move For Economic Engagement

The European Investment Bank (EIB) is set to inaugurate its offices in Cyprus this autumn, marking a significant step in enhancing its presence and operations within the region. This development follows an agreement between EIB President Nadia Calviño and Cypriot Finance Minister Makis Keravnos. The decision aims to foster closer collaboration with local stakeholders, bolster support for regional projects, and streamline advisory services.

Minister Keravnos highlighted the strategic importance of having EIB executives stationed locally. Initially, these executives will operate from the Ministry of Finance until permanent premises are established. This move underscores the EIB’s commitment to understanding and addressing the specific needs of Cyprus’s economy and society.

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Nadia Calviño emphasised the transformative impact of EIB investments on local communities across the EU, including Cyprus. Recent EIB investments in Cyprus include substantial funding for wastewater treatment projects and support for the country’s first publicly supported venture capital fund. Since 1981, the EIB has financed 82 projects in Cyprus, totalling €5.5 billion, with recent commitments worth €257 million.

The new office in Nicosia is expected to facilitate more direct support from EIB staff and leverage their expertise for project preparation and execution. This initiative aligns with the EIB’s broader mission to promote sustainable growth, innovation, and competitiveness within the Cypriot economy.

EIB Vice President Kyriacos Kakouris, the first Cypriot in this role, expressed optimism about the new office’s potential to boost the local economy. The EIB’s expanded local presence reaffirms its dedication to fostering economic development in Cyprus, ensuring that the benefits of EIB’s investments are maximised for the country’s future prosperity.

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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.

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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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