Construction Industry Secures Collective Agreement Until 2027

In a significant development for the Cypriot construction industry, the collective agreement has been renewed until the end of 2027. The renewal follows the acceptance of a mediatory proposal by the social partners in the sector, including PEO, SEK, DEOK, and OSEOK. The Minister of Labour and Social Insurance, Yiannis Panagiotou, highlighted the agreement as a collective triumph of tripartite social cooperation, serving the public interest and benefiting all parties involved.

The agreement emerged from a proposal submitted by the Minister on 19 July, marking a successful negotiation process between trade unions and employers’ associations. Panagiotou emphasised that the agreement ensures labour peace within the construction industry, a critical factor for the sector’s growth and the stability of the Cypriot economy, especially in a volatile global environment.

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Key aspects of the agreement include the restoration of wage reductions from the past decade and the introduction of planned salary increases and benefits over the coming years. Additionally, specific actions are outlined to enhance wage convergence and tackle illegal and undeclared work effectively.

The Minister expressed gratitude to the leadership of the trade unions and employer organisations for their constructive collaboration, which is essential for implementing the agreement’s provisions. This cooperation is expected to improve labour relations and enhance the operational framework of the construction industry concerning labour issues.

The formal signing of the agreement is scheduled for 31 July 2024 at the Ministry of Labour and Social Insurance. This agreement marks a critical milestone in maintaining a stable and prosperous working environment in Cyprus’ construction sector, setting a precedent for other industries.

This renewal is anticipated to positively impact the construction industry, contributing to the broader economic stability and development of Cyprus. By ensuring fair wages and working conditions, the agreement aims to foster a productive and harmonious industrial environment, crucial for the island nation’s economic trajectory.

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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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