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Agriculture Minister announces €109.3 million strategy for primary sector

Cyprus has launched a new strategy for its agricultural sector, aiming at sustainable development, innovation, and economic resilience.

Minister of Agriculture, Rural Development, and Environment Maria Panayiotou introduced the strategy at a press conference on 10 October, stressing that “it is not just an initiative, but a roadmap reflecting our vision for the future of Cypriot agriculture.”

The strategy, which includes 11 key actions with a budget of €109.3 million, covers the period from 2024 to 2028 and was approved by the Council of Ministers on October 2, 2024.

“Our aim is to establish a new model for the primary sector, ensuring sustainable production, economic support, and access to new technologies,” Panayiotou said. She noted the government’s commitment to providing solid tools and support for farmers, moving beyond emergency measures to a robust, development-oriented approach.

The new strategy aims to increase the contribution of the agricultural sector to Cyprus’ GDP, which currently stands at 1.8%. It will focus on expanding the sector’s capabilities while promoting sustainability and resilience in the face of ongoing challenges.

“We want to ensure the needs of the domestic market are met while promoting Cypriot products in new international markets,” Panayiotou added.

Key elements of the strategy include boosting the professional farming sector through priority measures and scoring systems, water management interventions to combat drought, and the adoption of smart farming technologies. The strategy will also address market gaps by supporting the use of untapped agricultural land and promoting cooperation among producer groups.

Panayiotou emphasised that the new strategy would support the long-term competitiveness of Cyprus’ agricultural sector, focusing on high-quality, affordable products for consumers and fair incomes for farmers.

The actions in the strategy will be funded through the Common Agricultural Policy (CAP) and national resources, with the University of Cyprus’ Economic Research Centre tasked with evaluating its overall impact on the economy. The 11 actions cover areas such as green competitiveness, livestock sector support, new financing tools for agriculture, quality certification for Cypriot products, and risk management in agricultural production.

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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