The Industrial Production Index rose by an annual 6.1% in June driven mainly by the annual gains in electricity production, data released on Thursday by the Statistical Service of Cyprus (CyStat) show.

In June 2024 the Index reached 117.3 units (base 2021=100).

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For the period January – June 2024, the index recorded an increase of 5,5% compared to the corresponding period of the previous year, CyStat added.

The manufacturing sector registered an increase of 2.1% compared to June 2023 while an increase was also observed in the sectors of electricity supply at 33.7%), mining and quarrying at 3.3% and water supply and materials recovery at 2.9%.

Revenue from tourism amounted to €1.13 billion in the first half of 2024 marking an increase of 4.2% year on year, data released by CySTAT show.

Based on the results of the Passengers Survey carried out by CySTAT, revenue from tourism in June 2024 reached €385.2 million compared to €361.5 mn in the corresponding month of the previous year, recording an annual increase of 6.6%.

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The average expenditure per person stood at €798.77 in June 2024 compared to €791.03 in June 2023, recording an increase of 1%.

Tourists from the United Kingdom, which comprise Cyprus’ largest tourist market with 35.6% of the total tourists in June 2024, spent on average €94.66 per day, while tourists from Israel (the second largest market during the specific month with 10.7% of the total tourists) spent on average €146.16.

Tourists from Poland (the third largest market with 7.5%), spent on average €78.00 per day.

According to CySTAT, the average stay in June remained unchanged to 8.5 days.

The Council of Ministers has approved a bill to institute a Patient Advocate, with the President of the Republic of Cyprus, Nikos Christodoulides, underlining, during the Cabinet meeting, the importance of the health sector as a key priority for the government.

President Christodoulides on 29 August explained that the independent institution of the Patient Advocate will have the authority to examine complaints and claims concerning patients’ rights, not only within the General Healthcare System (GHS) but also outside of it. It will also, he continued, be responsible, among many other things, for providing information and preparing relevant recommendations.

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He also noted that the decision also establishes an Advisory Committee, whose mission will be to support the work and actions of the Patient Advocate, while at the same time the role and responsibilities of the Committees for the Examination of Patient Complaints will be strengthened.

Health Minister, Michael Damianos, speaking after the Cabinet meeting said that “with this bill, the Ministry of Health is taking a decisive step towards ensuring the rights of patients, both within and outside the GHS.”

He added that the innovations promoted through the proposed bill are crucial for strengthening patients’ rights and improving the quality of health services in the country.

Damianos urged the House of Representatives to proceed with its vote for the implementation of this important initiative that will have a direct positive impact on society.

The Minister of Health also announced a decree, as of 29 August, to repeal all measures relating to COVID 19 which remained in force, including the use of masks in hospitals and nursing homes.

Cyprus is contemplating the termination of its state-controlled gas import monopoly in a bid to resolve persistent energy challenges and inefficiencies in the market. The proposal aims to introduce private sector competition in the natural gas import sector, potentially leading to lower energy costs and a more efficient market structure. This move could also expedite Cyprus’s shift towards greener energy by fostering a more dynamic and competitive environment. The decision forms part of a broader strategy to modernize the island’s energy landscape and bolster energy security.

The idea of ending the monopoly is seen as a crucial step in addressing the current energy deadlock that has hindered the country’s progress in achieving a stable and affordable energy supply. With the state monopoly in place, the energy market has faced limitations that have slowed down the adoption of more sustainable energy practices and kept energy prices relatively high. By allowing private entities to participate in gas imports, Cyprus hopes to create a more competitive market that can better respond to the demands of consumers and the global energy market.

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Additionally, opening up the gas market could attract foreign investment, further stimulating the economy and providing the necessary capital for energy infrastructure projects. This shift could also lead to a diversification of energy sources, reducing the country’s reliance on imported fossil fuels and supporting its environmental commitments.

The potential policy change comes at a time when many countries are reevaluating their energy strategies in light of global economic pressures and the urgent need to address climate change. For Cyprus, the end of the gas import monopoly could mark a significant turning point in its energy policy, aligning the country more closely with European Union energy market regulations and sustainability goals.

Cyprus is making significant progress in its bid to join the U.S. Visa Waiver Program (VWP), a move that would enable Cypriot citizens to travel to the United States without a visa for stays of up to 90 days. Government officials have expressed optimism, noting that the country is on a “very good path” towards meeting the program’s requirements. This development is part of Cyprus’s broader strategy to strengthen bilateral relations with the U.S., enhancing opportunities for travel, business, and cultural exchange.

The VWP is a significant initiative that allows citizens of participating countries to travel to the United States for tourism or business without needing to obtain a visa. For Cyprus, joining this program would mark a milestone in its diplomatic and economic relations with the U.S. The process involves meeting strict criteria, including maintaining high-security standards, effective counterterrorism measures, and low visa refusal rates.

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Cyprus’s government has been actively working on fulfilling these requirements, and recent discussions with U.S. officials have reportedly been positive. The optimism surrounding Cyprus’s application is fueled by the country’s ongoing efforts to align with the necessary legal and security standards required by the VWP. These include enhancing border security, implementing advanced traveler information systems, and ensuring robust law enforcement cooperation with the U.S.

The potential inclusion of Cyprus in the VWP is expected to have several benefits, particularly in boosting tourism and business travel between the two nations. It would make travel more accessible for Cypriots, fostering closer economic and cultural ties. Moreover, it could lead to increased U.S. investment in Cyprus, as easier travel could encourage more business ventures and partnerships.

Payabl, a prominent payments processing company, is commemorating 12 years of its strategic partnership with Mastercard, a collaboration that has significantly shaped its trajectory in the competitive fintech industry. Since its inception, this partnership has empowered Payabl to tap into Mastercard’s vast network and cutting-edge technology, enhancing its ability to deliver seamless, secure, and innovative payment solutions to a diverse global clientele.

Over the past decade, the partnership has been pivotal in helping Payabl expand its reach, especially in the fast-growing digital payments sector. By leveraging Mastercard’s technological expertise and global infrastructure, Payabl has been able to offer robust solutions tailored to the needs of businesses navigating the complexities of the digital economy. This has been particularly important as the payments landscape has evolved, with increased demand for secure, fast, and flexible payment options.

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The partnership also underscores the value of strong collaborations in the fintech world, where rapid technological advancements and shifting consumer expectations require agility and innovation. For Payabl, the relationship with Mastercard has not only provided the necessary tools and support to stay ahead of the curve but has also reinforced its reputation as a reliable and forward-thinking player in the payments processing industry.

As Payabl looks to the future, its partnership with Mastercard will likely continue to be a cornerstone of its growth strategy. The company is poised to further innovate and expand its offerings, ensuring that it remains at the forefront of the digital payments revolution. This enduring alliance highlights how strategic partnerships between established financial giants and agile fintech firms can drive industry-wide progress, benefiting businesses and consumers alike.

The Bank of Cyprus has issued a response to the growing influence of Revolut within the Cypriot market. Revolut, a prominent fintech company, has rapidly expanded its services in Cyprus, attracting a significant customer base with its innovative digital banking solutions. The Bank of Cyprus acknowledges the competition but remains confident in its established position, emphasising its comprehensive range of services, local expertise, and deep-rooted customer relationships as key advantages over newer digital-only competitors.

This situation underscores the evolving dynamics in Cyprus’ banking sector, where traditional institutions are increasingly challenged by agile, tech-driven entrants like Revolut. The Bank of Cyprus’ response highlights the ongoing battle between established banks and fintech companies, each vying to capture and retain a digitally-savvy customer base. This development is a significant example of the broader trend of digital disruption in the financial services industry, which is reshaping how banks operate and interact with their customers.

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In this competitive landscape, the Bank of Cyprus is expected to leverage its strong local presence, regulatory knowledge, and diversified service offerings to maintain its market position against the rising influence of Revolut and similar fintech players. However, as digital banking continues to gain traction, traditional banks will need to innovate and adapt to remain relevant in an increasingly digital world.

In a significant legal development, Uber has been slapped with a €290 million fine by Dutch authorities. The penalty stems from the ride-hailing giant’s alleged violations related to its tax obligations in the Netherlands. This fine is part of a broader crackdown on multinational corporations that fail to adhere to stringent tax compliance and transparency measures. Uber, which has faced various legal challenges across the globe, is likely to contest the fine, but this incident underscores the growing regulatory scrutiny that tech giants are encountering, particularly in Europe.

The fine highlights the increasing enforcement of tax regulations in Europe, where authorities are intensifying efforts to ensure that multinational corporations pay their fair share of taxes. This incident serves as a reminder to businesses operating in multiple jurisdictions that compliance with local tax laws is critical to avoiding severe penalties.

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Uber’s situation also raises questions about the sustainability of its business model in the face of mounting regulatory pressures. As authorities worldwide continue to tighten the noose around tax avoidance practices, companies like Uber may need to reassess their strategies to mitigate risks and ensure long-term viability.

The impact of this fine on Uber’s operations in Europe remains to be seen, but it is clear that the company will need to navigate a complex and increasingly hostile regulatory environment. This case could set a precedent for how other tech companies are treated by European regulators, potentially leading to a more stringent approach to tax enforcement across the continent.

In conclusion, Uber’s €290 million fine from Dutch authorities is a stark reminder of the growing challenges that multinational corporations face in today’s regulatory landscape. As governments intensify their efforts to combat tax evasion and ensure compliance, companies must be prepared to adapt to the changing environment or risk facing significant penalties.

Cyprus is set to introduce a 15% minimum tax rate for large multinational corporations, in compliance with the EU directive aimed at harmonising tax policies across member states. The move, endorsed by Cyprus’ Finance Minister Makis Keravnos, is expected to generate over €200 million in additional revenue. This decision, while marking a significant shift from the current 12.5% rate, aligns Cyprus with the broader OECD-led initiative to establish a global minimum tax rate. Despite concerns, Keravnos reassured that the change is unlikely to drive multinationals out of the country, as the directive applies EU-wide.

This adjustment reflects a crucial step in Cyprus’ ongoing efforts to maintain competitiveness while adhering to international tax standards. With the proposal now before the Cabinet and soon to be discussed in Parliament, the nation is poised to balance its attractive tax regime with the demands of a globalised economy.

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The introduction of this tax rate signals Cyprus’ commitment to international cooperation on tax matters, aiming to prevent profit-shifting practices that have historically allowed large corporations to minimise tax liabilities. For Cyprus, a key hub for multinational firms, this move could redefine its positioning in the global business landscape, ensuring it remains a compliant yet competitive destination for international business.

While the increase may seem minor, the 15% rate represents a broader shift in global tax policy, driven by a collective effort to create a more level playing field for taxation. For Cyprus, traditionally seen as a tax-friendly jurisdiction, this could challenge its status, pushing it to leverage other competitive advantages beyond low tax rates, such as a robust legal framework, strategic location, and skilled workforce. The long-term impact on foreign direct investment will be a critical metric to watch as this policy unfolds.

Wizz Air, a prominent low-cost European airline, has temporarily suspended its operations to and from Israel, citing escalating security risks in the region. This decision primarily affects flights between Tel Aviv and various European cities, including those connecting with Cyprus, a key market for the airline. The suspension underscores the volatile security environment in Israel, which has prompted Wizz Air to prioritise passenger safety above all else.

The suspension comes at a critical time for both the airline and travellers. Wizz Air has been steadily expanding its presence in the Eastern Mediterranean, with Israel being one of its key markets. The airline operates multiple routes between Tel Aviv and major European hubs, making this suspension a significant disruption for both business and leisure travellers.

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For Cyprus, the impact is particularly notable given the close ties and frequent travel between the two countries. The suspension could lead to reduced connectivity and increased travel costs for passengers, as they may need to seek alternative airlines or routes. Moreover, the suspension may also affect tourism, a key sector for both Israel and Cyprus, especially during the peak travel season.

Wizz Air’s decision reflects the broader challenges airlines face in navigating geopolitical instability. The airline has indicated that it will continue to monitor the situation closely and provide updates as conditions evolve. Passengers affected by the suspension have been advised to check Wizz Air’s official channels for information on flight resumptions, refunds, or alternative travel arrangements.

This suspension is not unprecedented; airlines often adjust their operations in response to security threats, balancing the need to maintain service with the imperative of ensuring passenger safety. However, the timing and scale of Wizz Air’s decision highlight the growing concerns over security in the region and the potential ripple effects on international travel.