Cyprus Tourism Sees Remarkable Surge: A 20.1% Increase In 2023

In a significant milestone for the Cypriot tourism industry, the island nation witnessed an impressive uptick in tourist arrivals, reaching a staggering 3.85 million in 2023. This 20.1% year-on-year increase, as reported by the Cyprus Business News, highlights the resilience and growth potential of Cyprus’s tourism sector amid a global economic landscape marked by uncertainty and recovery.

The tourism sector, a cornerstone of the Cypriot economy, demonstrated remarkable recovery dynamics post-pandemic. The strategic initiatives by the government, aimed at revitalising and promoting Cyprus as a premier tourist destination, have borne fruit. Enhanced marketing campaigns, infrastructure developments, and improved service quality have collectively contributed to this significant surge in tourist numbers.

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One of the pivotal factors driving this growth has been the diversification of the tourism market. Traditionally reliant on visitors from the United Kingdom and Russia, Cyprus has successfully expanded its reach to other European nations and beyond. The influx of tourists from Germany, Israel, and Scandinavian countries has provided a more balanced and sustainable tourism influx, mitigating the risks associated with over-dependence on a limited number of markets.

Moreover, Cyprus’s unique blend of historical heritage, natural beauty, and modern amenities continues to captivate international travellers. From the ancient ruins of Kourion and the medieval castles of Limassol to the pristine beaches of Ayia Napa and the vibrant nightlife of Nicosia, Cyprus offers a diverse array of attractions that cater to a broad spectrum of tourist preferences.

The positive trends observed in 2023 are not merely quantitative but also qualitative. Higher tourist arrivals have been accompanied by increased average expenditure per tourist, contributing to greater economic benefits. The focus on high-value tourism segments, such as luxury travel, wellness tourism, and eco-tourism, has attracted a more affluent demographic, further bolstering the economic impact of the tourism sector.

The Cypriot government remains committed to sustaining this growth trajectory in light of these developments. Initiatives such as the National Tourism Strategy 2030 underscore the government’s long-term vision for the sector. This comprehensive strategy aims to enhance the tourism infrastructure, improve service standards, and foster sustainable tourism practices, ensuring that the growth in tourist arrivals translates into lasting economic prosperity and social benefits.

However, the path forward is not without challenges. The global tourism landscape is highly competitive, and Cyprus must continuously innovate to maintain its competitive edge. Issues such as environmental sustainability, seasonality, and geopolitical tensions necessitate proactive measures and strategic foresight.

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

by THEFUTURE.TEAM

June 26, 2026

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.

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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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