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Cyprus Sees Robust 2.6% GDP Growth In Q4 2024

Cyprus has recorded a solid 2.6% GDP growth in real terms for the fourth quarter of 2024, according to the latest flash estimate from the Cyprus Statistical Service (CySTAT).

When adjusted for seasonal and working day variations, the real GDP growth rate rises slightly to 2.9%, reflecting an overall positive economic trajectory.

Key contributors to this growth include the “Hotels and Restaurants,” “Wholesale and Retail Trade, Repair of Motor Vehicles,” and “Information and Communication” sectors. However, the “Construction” sector experienced a decline, registering negative growth.

In comparison to the third quarter of 2024, the fourth quarter saw a modest 0.3% increase in GDP, further highlighting the continued strength of the Cypriot economy heading into the new year.

Cyprus Tourism Associations Warn Of Market Distortion Under New Recreational Areas Law

Fragmented Licensing Proposals Raise Concerns

The Association of Cyprus Tourist Enterprises and the Cyprus Hoteliers Association raised concerns over a proposed law on the establishment and operation of recreational areas, currently under review by the House Tourism Committee. In a joint statement, the associations said the proposal introduces a separate licensing framework that could create overlapping responsibilities across authorities.

Potential Impact On Market Integrity And Visitor Experience

According to the associations, the proposal would require an additional operating license for restaurants within hotel units, despite existing regulatory oversight. They said this could lead to duplication in licensing procedures and affect operating conditions across the sector.

Concerns Over Uniform Regulations And Noise Pollution

The associations also noted that the proposal applies uniform rules across different types of tourism establishments without accounting for operational differences. They said provisions related to operating hours and noise management may affect both business activity and visitor experience if not adjusted.

A Call For An Integrated And Coherent Approach

In their statement, the organisations said regulatory changes should be aligned within a single framework covering licensing, operations, and compliance. They argued that a coordinated approach would better support sector stability and service standards.

Strategic Legislative Delay

Stek and Pasyxe called on parliament to delay a decision on the proposal until a broader government initiative is completed. They said a revised bill should reflect sector requirements and broader policy considerations before being adopted.

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