Advancing Energy Security: Cyprus-Crete Interconnector Moves Forward

In a significant step towards energy security and regional cooperation, Cyprus and Greece have advanced plans for the Cyprus-Crete interconnector, a key segment of the broader EuroAsia Interconnector project. This development follows positive study results and recent regulatory decisions that paved the way for this critical infrastructure project.

The Cyprus-Crete interconnector, now known as the Great Sea Interconnector, aims to establish a high-voltage direct current (HVDC) link between Cyprus and Crete. The project’s approval comes after thorough evaluations by the Independent Power Transmission Operator (ADMIE) of Greece and the Cyprus Energy Regulatory Authority (CERA). This collaboration underscores the project’s importance in enhancing energy connectivity and security in the Eastern Mediterranean.

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According to ADMIE President and CEO Manousos Manousakis, construction is set to begin in 2024, with an expected completion timeline of four to five years. This ambitious project is supported by substantial funding, including a significant €800 million grant from the European Commission and a €100 million contribution from Cyprus, part of a total projected cost of €1.9 billion. The remaining funds will be sourced from ADMIE, investment funds, and other resources.

The interconnector is poised to transform the energy landscape by enabling the exchange of electricity between Cyprus and Greece, thereby reducing energy costs, enhancing supply reliability, and facilitating the integration of renewable energy sources. This strategic infrastructure will not only benefit the involved nations but also contribute to the broader European energy network.

The project has faced delays, particularly due to the complex regulatory environment and the need for comprehensive studies. However, the recent positive study outcomes have accelerated decision-making processes. Cyprus is expected to finalise its participation by the end of January 2024, reflecting its commitment to the project despite earlier setbacks.

Minister of Energy George Papanastasiou highlighted the project’s potential to usher in a new era of energy efficiency and security for Cyprus. He emphasised that the interconnector would reduce the island’s energy isolation and dependency on fossil fuels, aligning with broader EU energy policy goals.

Additionally, the involvement of the German company Siemens in connecting the converters between Cyprus and Crete marks a critical milestone. The contract with Siemens is anticipated to be signed by the end of 2024, further solidifying the project’s implementation timeline.

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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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