Energy Consumption Costs Soar For Cypriot Consumers

As Cyprus grapples with soaring temperatures, the financial burden on consumers due to increased energy consumption is becoming apparent. The Cyprus Electricity Authority (EAC) has reported a significant uptick in electricity bills, driven not by rising energy prices, but by extensive use of air conditioning units.

Rising Costs

According to the EAC President, George Petrou, electricity bills for June and July 2024 are projected to increase by approximately 1.5% compared to May. This rise is attributed to the heavy reliance on air conditioning, necessitated by the extreme heat. Petrou highlighted that while fuel prices have remained stable due to pre-purchased stock, the intense use of air conditioning has led to higher consumption rates, thereby increasing costs for consumers.

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Recommendations for Consumers

To mitigate these costs, the EAC advises consumers to use air conditioners judiciously. Petrou recommends setting air conditioners to 26 degrees Celsius, noting that each degree lower can increase energy consumption by up to 6%. This means that setting an air conditioner to 18 degrees instead of 26 can lead to a 40% rise in energy usage. Consumers are also urged to ensure windows are closed while air conditioners are in operation to maximise efficiency.

Economic Implications

Kostas Karayiannis, Head of the Consumer Protection Service, pointed out that electricity costs and high interest rates are major concerns for households and businesses. While a recent decrease in fuel prices provided some relief, there is cautious optimism about the stability of these prices in the near future.

Government Measures

The Cypriot government has extended its subsidy on electricity prices and maintained a zero VAT rate on 11 essential consumer goods until October 2024. These measures aim to alleviate the financial strain on consumers during the peak summer months. Marios Drousiotis, President of the Cyprus Consumers Association, commended the government’s initiatives but cautioned that consumers will still face significant electricity bills due to the necessity of air conditioning in the high temperatures.

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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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