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Cyprus and Japan sign Memorandum of Cooperation on Science and Technology

Deputy Minister of Research, Innovation and Digital Policy, Nicodemos Damianou, and  Minister of Education, Culture, Sports, Science and Technology of Japan, Toshiko Abe, signed a Memorandum of Cooperation aimed at strengthening relations between Cyprus and Japan in the fields of science and technology, both at the transnational and the European level, during an official visit Damianou paid to Kyoto.

According to a press release issued by the Deputy Ministry, the expansion of Cyprus-Japan relations in the fields of science and technology was the focus of Damianos’ official visit to Kyoto.

In the framework of bilateral contacts with the Japanese Minister of Education, Culture, Sports, Science and Technology, a Memorandum of Cooperation was signed to strengthen relations between Cyprus and Japan in the fields of science and technology, both at the transnational and the European level, it is stated.

Specifically, the press relese added, the memorandum promotes, among other things, the joint implementation of research and innovation (R&I) projects on issues of common interest, the mobility of scientists and the exchange of know-how and expertise between the academic and research communities of the two countries.

In his remarks, the Deputy Minister, after congratulating the Japanese Minister on her recent appointment, referred to the importance of the Memorandum as a tool for transferring know-how from a mature ecosystem – such as that of Japan – to the emerging – but highly dynamic – ecosystem of Cyprus.

He also touched on the cooperation prospects within the European Framework Programme Horizon Europe, with Japan being already at an advanced stage of consultations with the European Union (EU) for joining the programme as an associate member.

The Deputy Minister, the statement added, also participated in a ministerial roundtable on Transformative science, technology and innovation policy to strengthen innovation ecosystems, which was attended by Ministers and senior officials from various countries around the world, including Japan, Canada, Qatar, Saudi Arabia, Egypt, Vietnam, the United Kingdom, Bulgaria, Romania, Estonia, Norway, Finland, Germany, Finland, Lithuania and the United Kingdom, with the participation of an EU representative.

As stated, the Summit was held in the context of the 21st Annual Meeting of the STS Forum, which brings together prominent political, business and academic figures to exchange views on strengthening the science and technology sectors and their impact on the global economy and society.

In his intervention, the Deputy Minister referred to Cyprus’ ascending performance in European and international R&D indicators, which puts the country for the third consecutive year in the top 10 strong innovators in Europe and 27th globally in terms of innovation (Global Innovation Index 2024), it is added.

Subsequently, the Deputy Minister stressed the need to create a favourable environment that encourages and facilitates innovation, underlining the importance of access to financial tools and skilled human resources, as well as providing incentives for investment in R&D.

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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