Across the Mediterranean, countries are increasingly competing not only for tourists but also for long-term residents, investment and skilled professionals. Greece and Malta have adopted different strategies to achieve that goal, offering two models that may hold lessons for Cyprus.

The shift comes as the traditional tourism model faces growing pressure. Climate change, overtourism and the rise of remote work have exposed the limitations of economies that depend heavily on peak summer demand. Increasingly, Mediterranean countries are looking for ways to extend tourism activity into year-round economic growth.

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Greece Stopped Selling Only The Summer

Greece offers one of the clearest examples of that transition. While its islands have long depended on July and August tourism, many have spent the past decade extending the season through infrastructure investment. Fibre connectivity has expanded to islands that once struggled with unreliable service, while ports have been upgraded with European recovery funding. On islands such as Naxos and Paros, the tourism season now stretches from Easter through November.

A longer season is also attracting more long-term visitors considering relocation rather than short holidays. Unlike tourists who leave after a week, residents contribute to the local economy throughout the year through housing, banking, education and everyday spending.

Athens has adjusted its policy framework accordingly. In 2024, it revised its residency-linked property investment rules, raising the investment threshold to €800,000 in high-demand areas including central Athens, Mykonos and Santorini, while maintaining a €400,000 threshold elsewhere. The objective was to redirect foreign investment toward regions with greater capacity while easing pressure on the country’s hottest property markets.

The policy has attracted attention for attempting to balance investment with concerns over housing affordability and the long-term sustainability of local communities.

Malta Turned Staying Into A Product

Malta has pursued a different strategy. Without Greece’s size or tourism volumes, it focused on attracting internationally mobile industries including financial services, iGaming and maritime registration. Competitive regulation and targeted policies helped establish the country as a base for those sectors.

The result has been a service-driven economy and one of the fastest-growing populations in the European Union, supported largely by international workers.

Alongside employment-based pathways, Malta also offers a residence programme for non-EU nationals combining a government contribution, a property purchase or long-term lease, and a philanthropic donation. Lower property thresholds in southern Malta and Gozo are intended to steer investment towards less-developed areas.

Whatever the broader debate surrounding such schemes, the policy reflects a consistent objective: converting foreign interest into long-term economic participation.

The Risks Of Success

Neither approach is without trade-offs. In Greece, Santorini has become a symbol of overtourism, with cruise arrivals placing increasing pressure on local infrastructure and prompting discussions over visitor limits. Rising demand for short-term rentals has also reduced housing availability for local residents in several destinations.

Malta faces different challenges. Rapid population growth has added pressure to infrastructure and housing, while the country has spent years rebuilding the reputation of its financial services sector following international scrutiny.

Both cases illustrate that attracting investment is only part of the equation. Managing its impact on housing, infrastructure and local communities is equally important.

What Cyprus Can Learn

Taken together, Greece and Malta demonstrate two distinct approaches to long-term economic development.

Greece is seeking to channel investment towards regions that can accommodate growth while reducing pressure on its busiest destinations. Malta has built its strategy around specialised industries, regulatory certainty and structured pathways for long-term residence.

For Cyprus, the lesson is not to replicate either model. Rather, it is to understand the trade-offs behind each approach. As competition for investment and internationally mobile residents intensifies across the Mediterranean, long-term success will depend not only on attracting people and capital, but also on ensuring growth remains sustainable for local communities.

Just 1% of Cyprus’ utilised agricultural area was managed in 2023 by holdings using precision agriculture technologies, according to data published Friday by Eurostat. That was the lowest share in the European Union, highlighting the country’s slow adoption of digital farming tools as agriculture becomes increasingly technology-driven across Europe.

A Clear Divide Across Europe

At the other end of the spectrum, Luxembourg, Finland and Estonia reported that more than 75% of utilised agricultural area was managed by farms using precision agriculture techniques.

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In Greece and Romania, the corresponding shares ranged between 10% and 15%, placing them well above Cyprus but still behind the EU’s leading countries.

Across the EU, about 18% of farms with utilised agricultural area used at least one precision agriculture technology or practice in 2023. Those holdings accounted for roughly 44% of the bloc’s total utilised agricultural area, suggesting adoption remains concentrated among larger or more technologically advanced farms.

What Precision Agriculture Includes

Precision agriculture covers a range of technologies designed to improve efficiency and reduce waste, including robotics, zone spraying for plant protection products, variable-rate application, crop monitoring and soil analysis.

Variable-rate technologies allow farmers to apply inputs automatically based on data from sensors, satellites or GPS systems, helping reduce costs, improve resource use and, in many cases, increase yields.

Connectivity Remains Key

Digital farming also depends on reliable internet access. Around 43% of EU agricultural holdings reported having internet access in 2023. In Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria, the share exceeded 90%.

Farm management information systems were used by about 11% of EU farms. France recorded the highest adoption rate, at around 60%, reflecting the wider use of digital management tools in agricultural operations.

Robotics Adoption Remains Limited

Robotics were used by about 7% of agricultural holdings across the EU in 2023. Eurostat defines robotics as machinery capable of operating autonomously without direct human intervention.

While digital technologies are becoming more common across European agriculture, the data show that adoption remains uneven. Cyprus continues to lag behind the rest of the EU, particularly in the use of precision farming technologies.

Cyprus’s hotel sector is heading into the peak summer season with occupancy averaging about 85% in July and August. While remaining strong by historical standards, it is still below last year’s record levels as rising energy costs and regional instability continue to weigh on tourism.

Bookings Improve, But The Market Remains Behind Last Year

Pasyxe director-general Christos Angelides said reservations have strengthened in recent weeks, helped by stronger demand over long weekends and a rise in last-minute bookings from neighbouring countries and the domestic market.

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“There has been stronger demand over long weekends, particularly through last-minute bookings from neighbouring countries and the domestic market, which has helped improve the picture,” Angelides said.

Even so, he said Cyprus continues to face a difficult operating environment, with higher energy costs linked to regional conflict and persistently high airfares adding pressure to the sector.

“We remain optimistic and continue to work together as an industry, but these are issues we must keep in mind,” he said.

Occupancy Holds Up, But Last Year’s Benchmark Was Exceptionally High

Angelides said nationwide hotel occupancy is averaging around 85% during the summer peak, compared with as much as 97% in August during last year’s record tourism season. Industry estimates suggest occupancy this year is running about 10% to 15% lower.

The Industry’s Next Test Is The Off-Season

The industry’s focus is now shifting to extending the tourism season into the winter and shoulder months.

“Our biggest hope is to build on last year’s performance during the November 2026 to April 2027 period. That is where we believe the difference can be made,” Angelides said, adding that stronger off-season demand could help offset the softer start to the year.

Despite the more challenging conditions, he said Pasyxe members remain committed to maintaining service standards and protecting Cyprus’ reputation as a high-quality destination.

Regional Tensions Continue To Influence Booking Behaviour

Separately, Actta president Haris Papacharalambous said the market remains behind last year’s pace, although the decline has so far been manageable. He noted that the Famagusta district has been affected more than other parts of the island.

Papacharalambous said arrivals have declined across almost all of Cyprus’ main source markets this year, with Israel the clear exception. Arrivals from Israel rose 170% in June compared with the same month in 2025, when the Israel-Iran conflict disrupted travel patterns.

He said one of the industry’s biggest challenges remains the perception of Cyprus as being exposed to regional conflict, particularly following the drone incident at the British Bases in March and the media coverage that followed. According to Papacharalambous, any renewed outbreak of violence in the region has an immediate impact on bookings.

“The effect is visible the very next day,” he said, adding that the latest developments have not yet triggered a significant downturn.

Outlook Points To A Softer Year, But Not A Collapse

Papacharalambous expects overnight stays across Cyprus to finish the year about 12% to 14% below last year’s record level. While tourism volumes are expected to remain historically strong, 2026 is unlikely to match the exceptional performance recorded in 2025.

Bank of Cyprus has been named “Best Sub-Custodian Bank in Cyprus 2026” by Global Finance, one of the world’s leading international financial publications, reinforcing the Bank’s strong position in Cyprus’ custody and post-trade services market.

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The award recognizes excellence across key areas of asset servicing, including operational efficiency, technology, client service and regulatory expertise. The award highlights financial institutions that consistently provide high-quality custody solutions and effectively respond to the increasingly complex needs of institutional and private investors.

The distinction reflects Bank of Cyprus’ commitment to safeguarding client assets and delivering reliable, high-quality custody and depositary services to institutional and private investors. It also acknowledges the Bank’s ongoing investment in innovative, client-focused post-trade solutions, underpinned by strong governance, regulatory compliance and extensive market expertise.

Recognising Excellence in Asset Servicing

Commenting on the recognition, Despina Kyriakidou, Treasury Director at Bank of Cyprus, said:

“This award is an important recognition of the expertise, commitment and consistently high standards of our teams. Custody and depositary services are fundamentally built on trust, reliability and the ability to navigate an increasingly complex investment and regulatory environment. At Bank of Cyprus, we continue to invest in our capabilities and technology, while remaining focused on the evolving needs of our clients. This distinction by Global Finance reinforces our commitment to providing secure, efficient and high-quality solutions to institutional and private investors.”

Comprehensive Custody And Depositary Services

Bank of Cyprus is a leading provider of custodian services to institutional and private investors, supported by a highly experienced and specialised team with extensive knowledge of the local and international investment environment. The Bank supports a broad range of investment activities through comprehensive asset safeguarding and tailored servicing solutions.

Its offering also includes specialised Depositary services for Collective Investment Funds, including UCITS and Alternative Investment Funds (AIFs), providing cash monitoring, safekeeping and oversight services that support domestic and international clients in navigating increasingly complex global markets safely and efficiently.

The award further strengthens Bank of Cyprus’ position as a trusted partner to the financial and investment industry and reflects its ongoing commitment to service excellence, innovation and the highest standards of asset servicing.

Nvidia and a coalition of technology companies on Monday launched the Open Secure AI Alliance, a new initiative aimed at strengthening artificial intelligence security through open models.

The alliance was announced days after a cyberattack involving OpenAI models targeted AI platform Hugging Face, an incident that renewed debate over whether open or closed AI systems are better suited for cybersecurity.

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Open Models at the Core

Nvidia said the alliance will focus on identifying, disclosing and mitigating AI security vulnerabilities using open technologies.

“The Open Secure AI Alliance will work to remediate and disclose vulnerabilities using open technologies,” the company said in a statement. “The recent Hugging Face security incident delivered a clear reminder: cyber defenders need open, frontier agentic systems for self-defense.”

The alliance includes Microsoft, SpaceX, Palantir and dozens of other technology companies from the U.S. and Europe.

Open-weight models can be downloaded, modified and deployed on an organisation’s own infrastructure, allowing security teams to inspect and adapt them for defensive purposes. By comparison, proprietary models from companies such as OpenAI and Anthropic are generally accessed through controlled platforms.

U.S. Scrutiny of Chinese AI Grows

The initiative comes as U.S. policymakers weigh potential restrictions on Chinese AI models, particularly open-weight systems. Officials have raised concerns that some Chinese companies may be using distillation techniques to extract knowledge from leading U.S. AI models.

Treasury Secretary Scott Bessent said last week that Chinese companies involved in such activity could face sanctions.

Chris McGuire, senior fellow for China and emerging technologies at the Council on Foreign Relations, told CNBC that potential restrictions could extend beyond model downloads to include API access and cloud-hosted inference services. He added that the debate in Washington is centred on intellectual property protection rather than opposition to open-source AI.

Industry Pushes Back

Last week, Nvidia, Microsoft, Meta, Palantir and more than 20 other companies urged policymakers not to impose what they described as “premature restrictions” on open-weight AI models, warning such measures could reduce competition and encourage innovation to move overseas.

The launch of the Open Secure AI Alliance signals growing industry support for open AI systems as governments consider new regulatory and security measures.

OpenAI is reviewing an incident in which one of its AI models breached the systems of AI platform Hugging Face, following calls from the company’s chief executive, Clem Delangue, for greater transparency about what happened.

Delangue said on X that he had travelled to San Francisco to discuss the incident with the OpenAI team before urging the company to publicly release technical details of the event.

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Delangue Calls For Greater Transparency

In a follow-up post, Delangue called for what he described as “radical transparency,” urging OpenAI to publish traces from the “rogue” AI agent so researchers can analyse the incident.

He also called on the company to commit $100 million in computing resources to help the Hugging Face community develop stronger AI-powered cybersecurity tools.

“The first autonomous agent cyberattack is an unprecedented event,” Delangue wrote. “It deserves an unprecedented response!”

Questions Over The Cause

While the incident has raised concerns about autonomous AI systems, some cybersecurity experts have suggested it may have resulted from human error rather than the model’s behaviour alone, pointing to reports that OpenAI’s testing environment may not have been fully isolated.

The incident has highlighted the importance of both AI safety measures and secure deployment practices as companies expand the use of autonomous systems.

OpenAI Reviewing The Incident

An OpenAI spokesperson confirmed the meeting with Delangue and said the company is continuing its investigation.

“This is an unprecedented incident, and we think it marks an important moment for AI safety,” OpenAI said. “We are still conducting a thorough review along with external advisors and with oversight from our Safety and Security Committee. Once the review is complete, we plan to publish a technical report of our learnings in the coming weeks.”

The company said it plans to release the findings of its review in the coming weeks.

Governments are rapidly introducing artificial intelligence regulations, but enforcement will determine whether those frameworks are effective, according to a new report from research firm Omdia. In AI Regulation: Analysis of Global Policies and Regulatory Frameworks, which examines AI policies across the Americas, Europe, Asia and Oceania, the firm argues that clear compliance requirements and credible enforcement will be essential as countries move from policy to implementation.

Enforcement Takes Centre Stage

Omdia says legislation alone is not enough, with regulatory credibility depending on whether organisations face meaningful consequences for non-compliance. “Mechanisms for addressing non-compliance should be a critical element of any AI regulatory framework,” said Sarah McBride, principal analyst for regulation at Omdia. She said financial penalties remain the most common enforcement tool, although some jurisdictions have also introduced sanctions including service suspensions and, in some cases, imprisonment.

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The European Union has adopted one of the strictest enforcement regimes through the AI Act, with penalties of up to €35 million or 7% of global annual turnover. South Korea’s AI Basic Act provides for fines of up to 30 million won, or about $20,000, highlighting how approaches to enforcement vary across jurisdictions.

Governments Expand AI Strategies

Alongside regulation, governments are increasingly adopting national AI strategies aimed at strengthening competitiveness through investment in research, workforce skills, technology adoption and digital infrastructure. McBride said AI sovereignty is becoming an increasingly important priority as policymakers seek to balance economic competitiveness with national security concerns.

Implementation Becomes The Next Challenge

Although national AI strategies are becoming more common, relatively few jurisdictions have fully implemented dedicated AI legislation. The EU AI Act entered into force in August 2024 and is being introduced in phases, while South Korea’s AI Basic Act took effect in January 2026 with a grace period before financial penalties are enforced.

Omdia said sectors including telecommunications are likely to face additional compliance requirements and higher operating costs as AI-specific rules take effect. McBride said the next priority for regulators should be practical implementation, supported by effective enforcement and clear guidance that businesses can follow.

The Cyprus Association of Tourist Enterprises (STEK) has expressed concern over Wednesday’s electricity outages, saying the disruptions affected hotel operations and risked damaging the visitor experience during the peak tourism season.

Hotels Affected By Power Outages

In a statement, STEK said the interruptions created operational difficulties for hotels at a time when Cyprus is seeking to strengthen its position in international tourism markets.

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The association said reliable electricity supply is essential for maintaining service standards and supporting the country’s competitiveness as a tourism destination.

Pressure On The Tourism Sector

STEK said the outages came during a challenging tourism season, with businesses already working to manage the impact of geopolitical developments in the wider region.

“Under these conditions, the last thing Cypriot tourism needs is additional internal problems that harm the image and credibility of the destination,” the association said.

The organisation also noted that electricity has become one of the highest operating costs for hotels, with energy expenses rising significantly in recent years.

Call To Strengthen Energy Infrastructure

STEK urged the government and relevant authorities to accelerate measures aimed at improving Cyprus’ energy security and ensuring sufficient electricity supply for critical infrastructure.

The association said reliable energy infrastructure is important for protecting the country’s competitiveness and international reputation.

Global recorded-music retail sales are projected to reach $48.3 billion in 2026, marking a 12th consecutive year of growth, according to forecasts from research firm Omdia.

Streaming Remains The Main Growth Driver

Omdia expects the market to surpass $50 billion in 2027 before reaching $56.8 billion by 2030.

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The forecast covers consumer spending on physical and digital music formats and services, as well as trade revenue from advertising, performance rights and synchronisation.

Subscription services, including Spotify, Apple Music and YouTube Music, are expected to remain the industry’s main source of growth. Subscription retail sales are projected to increase 7.2% to $30.5 billion in 2026 from $28.4 billion a year earlier and exceed $37 billion by 2030.

Physical Sales Continue To Grow

Advertising revenue is forecast to outpace physical music sales over the next five years, with compound annual growth rates of 4.3% and 3.4%, respectively.

Despite slower growth, physical formats are expected to remain the second-largest source of recorded-music revenue. Sales are projected to reach $8.3 billion by 2030, while combined audio and video advertising revenue is forecast to rise to $6.2 billion.

China Climbs The Global Rankings

China is expected to become the world’s second-largest recorded-music market by 2029 after overtaking the UK in 2028 and Japan a year later.

By 2030, the country is projected to account for 8.7% of global recorded-music retail revenue, up from 5.8% in 2025. The United States is expected to remain the largest market, although its share of global sales is forecast to decline from 40.3% to 38.4% over the same period.

Outlook

Simon Dyson, senior principal analyst at Omdia, said the forecasts point to continued momentum for the industry, with global retail sales expected to reach new record highs over the next five years.

He added that China becoming the world’s second-largest music market would mark a significant milestone, reflecting its growing contribution to the global music industry.

A commercial-scale sand battery in southern Finland is demonstrating how thermal energy storage could help address one of renewable energy’s biggest challenges: balancing intermittent electricity generation.

Located in the town of Pornainen, the facility stores clean electricity as heat in 2,000 metric tons of crushed soapstone, delivering up to 100 megawatt-hours of thermal energy. Standing 13 meters tall and 15 meters wide, it is the largest sand battery of its kind in the world. For the town’s roughly 5,000 residents, that provides nearly a month of heating in summer and about a week in winter.

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Commissioned by district heating company Loviisan Lämpö and developed by Polar Night Energy, the system began operating last year as part of efforts to introduce more flexible heat production and reduce emissions. According to the company, greenhouse gas emissions from Pornainen’s district heating network have fallen by almost 70%, while wood-chip consumption has declined by about 60%. A conventional wood-chip plant remains available to provide backup and meet peak demand.

How The Technology Works

Sand batteries store surplus electricity generated during periods of strong wind or solar production by converting it into heat. The energy is retained in heavily insulated crushed soapstone for days or weeks before being released through heat exchangers to warm water circulating in the district heating network.

Polar Night Energy Chief Executive Tommi Eronen said the shift from conventional power plants to renewable energy would require significantly more storage capacity.

“We’re changing from a world where big power plants were doing the energy production to where solar and wind are producing the energy, then we need a massive amount of storage.”

He said sand-based storage could complement renewable energy without relying on rare earth materials used in many conventional battery technologies.

Scaling Electrothermal Storage

The Pornainen installation is around 10 times larger than an earlier sand battery launched in Finland in 2022, reflecting the company’s ambition to expand electrothermal storage.

Interest is also growing beyond Finland. Polar Night Energy said it has received enquiries from potential customers on every continent, particularly from communities seeking alternatives to fossil fuel-based heating.

Jan Rosenow, professor of energy and climate policy at the University of Oxford, said electrothermal storage could play a broader role because it relies on widely available materials and can store heat for much longer than conventional batteries.

“You don’t need rare earths, critical raw materials and the beauty is you can also charge up the battery when the electricity is cheap and discharge whenever you need the heat.”

Supporting District Heating

Unlike conventional batteries, sand batteries are designed to store heat rather than electricity, making them particularly suitable for district heating systems.

Loviisan Lämpö Chief Executive Mikko Paajanen said the battery allows the company to separate electricity purchases from heat production by buying power when prices are low and storing the energy for later use. One charge can provide heating for about one week during winter or up to one month during summer.

Paajanen said the company expects the sand battery to supply 55% to 60% of Pornainen’s district heating during the first months of the year, compared with about 30% in 2025.

Finland’s Climate Minister Sari Multala described the project as “very inspiring” and said the technology could support more advanced energy applications in the future.