Robust Revenue Growth Driven By Strong Visitor Spending

Tourism revenue in Cyprus has reached an impressive milestone, registering €2.47 billion in the January–August period of 2025. The latest figures, released by the Cyprus Statistical Service (Cystat), highlight a 16.5% increase compared to the previous year’s €2.12 billion. In August 2025 alone, revenue climbed to €581.8 million, marking a 13.8% improvement relative to August 2024’s €511.4 million. This robust performance is underpinned by rising visitor spending and a consistent influx of tourists across key markets.

Key Markets & Rising Per Capita Expenditure

Cyprus’ tourism success is largely attributable to its appeal among major markets such as the United Kingdom, Israel, and Poland. UK visitors, representing 32.1% of total tourists, spent an average of €1,195.02 per person, including €112.74 per day. Meanwhile, Israel, accounting for 17.5% of arrivals, and Poland, with 7.0%, demonstrated robust spending of €792.69 and €740.38 per person, respectively. These trends are further corroborated by spending metrics from visitors from France, Germany, the United States, and Greece, all of which underscore the vitality of the sector.

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Precision Data Collection And Methodology

The detailed insights provided by Cystat are the result of a comprehensive Passengers Survey conducted at Larnaca and Paphos airports via Computer Assisted Personal Interviewing (CAPI). The survey delineates tourist activity strictly within government-controlled regions, thereby ensuring the accuracy of visitor metrics. Tourists are defined as visitors staying at least one night, and arrivals are quantified by trip rather than by individual, a key nuance in understanding market trends.

Sustainable Growth And Strategic Investment

Reflecting a strategic shift, Cyprus’ Deputy Ministry of Tourism recently announced a €74.6 million budget for 2026 with a strong emphasis on sustainability, quality, and community benefits. The allocation is robust: 37.1% is dedicated to promotion, while 20% supports product upgrade grant schemes, and 25% covers operational expenses, including funds for the EU Council Presidency. An additional €13.2 million is earmarked for targeted schemes under the EU Recovery and Resilience Plan, leveraging funds to enhance rural, mountainous, and agritourism accommodations as well as cultural experiences.

Pioneering The Transition To Year-Round Tourism

In parallel with rising revenues, Cyprus is actively transitioning towards a year-round tourism model. Industry leaders, including the Cyprus Hoteliers Association, are expanding operating seasons, notably in hubs like Ayia Napa and Protaras. With touristic arrivals up 10.3% between January and September 2025 and the sector contributing 14% to GDP, this strategic pivot aims to bolster activities during the traditionally off-peak months. This initiative not only promises to stabilize employment across the tourism ecosystem but also ensures Cyprus capitalizes on its mild climate and robust demand.

As the island continues its journey to become an all-season destination, diversified offerings in sports, wellness, and gastronomy are set to redefine its tourism landscape. This forward-thinking approach positions Cyprus at the forefront of sustainable tourism development, ready to meet the challenges and seize the opportunities of tomorrow’s global travel market.

Investigation Launched Amid Consumer Complaints

More than 200 complaints have been lodged against Limassol-based travel agency Efi Strakottou Travel and Tours Ltd, raising serious questions about consumer protection and compensation protocols when travel services fail to materialize. The Commerce Ministry’s consumer protection service has confirmed the initiation of an investigation into the agency, now deemed insolvent and potentially incapable of fulfilling its contractual commitments.

Warning to Consumers and Mounting Financial Concerns

Authorities have advised that no further payments be made by travelers to the agency. This advisory follows a series of incidents reported as early as late September, when the growing number of complaints highlighted serious lapses in service delivery. Consumers who invested in package travel contracts, only to receive no services in return, have been instructed to submit their claims in writing to the Association of Cyprus Travel and Tourism Agents (Actta) by the specified deadline.

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Financial Safety Nets: A Critical Shortfall

Initial findings are troubling: while consumers have collectively paid approximately €103,000, the agency’s financial guarantee barely amounts to €12,000. This glaring disparity has inflamed criticism of state authorities for what is being described as inadequate oversight and delayed intervention. Marios Droushiotis, chairman of Actta, has called for more robust regulatory measures and hinted at the possibility of legal actions to ensure that affected customers receive full compensation.

Legislative Scrutiny and Future Safeguards

The issue has escalated to the parliament, where the House Commerce Committee is set to review how consumer interests are safeguarded in instances of agency insolvency or deception. Central to the discussion will be whether the current protections under the Package Travel and Linked Travel Arrangements Act of 2017 are sufficient to shield travelers when financial promises fall short. The consumer protection service, along with Actta as the administering body for guarantees, will be under close examination as lawmakers debate possible reforms to tighten oversight and reinforce consumer rights.

This case stands as a stark reminder for both consumers and regulators alike: rigorous due diligence and stronger financial safeguards are imperative to prevent future exposures. The outcome of this parliamentary review and potential tightening of regulations could set a new benchmark in ensuring accountability in the travel industry.

The Cyprus Council of Ministers has approved the government’s comprehensive proposal for tax reform, a move deemed an “emblematic project” by Finance Minister Makis Keravnos. Now set for parliamentary debate and approval, this reform marks the first major overhaul in 22 years.

Enhancing Social Equity and Economic Growth

At its core, the reform is structured to redistribute the tax burden more fairly, reinforce the middle class and low-income households, and spur growth among small and medium enterprises, which constitute 98% of the national economy. The package includes six legislative amendments aimed at a broad social impact. Notably, the tax-free allowance will rise from €19,500 to €20,500, placing it among the highest in the European Union.

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Targeted Relief for Families and Key Demographics

Designed with a keen social perspective, the reform introduces significant relief measures for families, students, young citizens, and large families. For household incomes below €80,000 (extended to €100,000 for large families), the measures include:

• An entitlement of €1,000 tax reduction per child.
• A €2,000 benefit per child for single-parent households.
• A €1,000 discount for each student.
• A €1,500 reduction applicable to home loan interest or primary residence rent.
• A €1,000 credit for energy upgrades or the purchase of an electric vehicle.

According to Minister Keravnos, these adjustments are expected to result in 55% of employees being exempt from taxation, with numerous cases exceeding a tax-free threshold of €24,500.

Reforming Corporate Tax Measures

The reform introduces several pivotal changes that directly affect business operations:

• The elimination of assessed dividend distribution for profits as of January 1, 2026.
• A reduction in the extraordinary defense contribution on actual dividend distribution from 17% to 5%.
• The removal of rental income contributions.
• An increase in the corporate tax rate from 12.5% to 15%.
• The introduction of an 8% rate for gains from the disposal of crypto-assets.
• An extension of loss carryforwards from 5 to 7 years.

Minister Keravnos emphasized that the reform is fiscally neutral and is intended to promote a fair redistribution of resources among employees, businesses, and households.

Refinements Following Stakeholder Consultations

Significant enhancements emerged from discussions with social partners:

• The allowance for voluntary exemption has surged from €20,000 to €200,000.
• The proposed property and business levies have been temporarily shelved.
• For Non-Dom companies, the fee is reduced from €250,000 to €50,000 for a period of five years, maintaining incentives to attract foreign investments.

Strengthening Anti-Evasion Measures

The initiative establishes robust mechanisms to combat tax evasion. Companies identified with irregularities will receive three warnings. Should issues recur within 30 days, cases will be escalated to the judiciary, which may impose temporary closures or other sanctions.

Timeline and Legislative Endorsement

Minister Keravnos has called upon the Parliament to approve the reform before the end of 2025, ensuring implementation by January 1, 2026. “This tax reform will significantly boost the economy and provide relief to hundreds of thousands of workers and households,” he stated, expressing optimism for the package’s timely passage.

The government has announced a critical extension of the zero-rated VAT on essential items until the end of December 2026, a move designed to alleviate financial pressures on vulnerable households.

Government Policy Extension

In a decisive cabinet meeting, Finance Minister Makis Keravnos confirmed that the zero VAT rate—which was set to expire in December 2025—will now continue to apply for an additional year. The policy covers a range of essential goods, including infant formula, child and adult sanitary products, and fresh or simply chilled fruits and vegetables, ensuring that the most necessary items remain affordable.

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Economic and Social Impact

This measure is a cornerstone of the government’s broader social policies, intended to reduce household expenses and boost disposable income across the nation. Even with inflation projected to remain at zero for 2025, the extension clearly targets support for the country’s most vulnerable citizens. By reducing tax burdens on daily necessities, the initiative is poised to improve living standards and stabilize consumer spending in challenging economic times.

Ongoing Fiscal Commitments and Community Engagement

Alongside the VAT extension, Minister Keravnos reaffirmed the government’s commitment to fiscal support for local communities. Highlighting allocations of 27 million euros for 2025, an additional 15 million euros scheduled for November 2026, and another 12 million euros within 2026, the Finance Ministry is upholding its promises to the Union of Municipalities. This proactive allocation emphasizes a collaborative approach, where dialogue and trust between government agencies and local authorities are vital to sustaining effective social support programs.

Ultimately, this policy not only eases financial pressures for households but also reinforces a disciplined fiscal agenda oriented towards long-term social stability. With targeted measures and transparent strategies, the government continues to set a high standard for economic and social policy in an increasingly challenging global environment.

Introduction

Recent data from the European Central Bank paints a complex portrait of household savings behavior across Europe. While Cyprus often benefits from favorable economic conditions—such as robust GDP growth, tempered inflation, and a resilient labor market—the reality of savings rates is more nuanced. Some nations outpace even these advantageous circumstances, reflecting divergent household financial strategies driven by a quest for economic security.

Divergent Saving Behaviors Across Europe

ECB statistics as of September show that Lithuanian households led the pack with an impressive 12.9% year-on-year increase in deposits, far exceeding the Eurozone average of 3.2%. Estonia followed closely with an annual increase of 10.6% and Latvia with 9.4%. In contrast, countries such as Croatia (7.8%), Ireland (6.6%), the Netherlands (6.2%), Slovakia (5.6%), and Slovenia (5.4%) reported moderate savings growth. Cyprus and Malta posted a 5.3% increase, while Spain and Portugal represented more modest gains at 5.1% and 4.8%, respectively.

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Varying Trends in Deposit Durations

The data further reveals preferences in the types of deposits held by households. In Cyprus, long-term deposits (those exceeding two years) increased by 8.6% annually—well above the Eurozone average of 1.6%. However, results are mixed; while Finnish households recorded an extraordinary 102.1% increase for certain deposit types, several other nations, including Latvia (-20.4%), Greece (-13%), Croatia (-12%), Portugal (-7.9%), Estonia (-6.2%), Malta (-4.9%), France (-3.6%), and Slovenia (-2.4%), have seen declines in these categories. Conversely, deposits with durations of up to two years generally trended downward, with the Eurozone averaging a 9.6% decline, despite Irish households showing a notable 36.7% increase.

Banking Liquidity and the Loan-To-Deposit Ratio

Beyond savings rates, the strength of bank balance sheets offers further insight. The Cypriot banking system stands out in the Eurozone with a remarkably low loan-to-deposit ratio of 50.3%, significantly lower than Greece’s 60.4% and the Eurozone average of 94%. This indicator underscores the robust liquidity of Cypriot banks, suggesting that they rely less on external funding and more on a solid base of household deposits. In essence, a lower ratio implies a safer financial footing, with banks less prone to liquidity pressures in times of economic uncertainty.

Conclusion

The latest ECB figures highlight the variability in household savings and deposit behaviors across Europe. While some nations demonstrate exuberant saving patterns driven by the pursuit of economic security, others align more closely with average trends. Cyprus, despite its reputably favorable economic conditions, offers a compelling case of a banking system bolstered by low-cost domestic funding and strong liquidity—a testament to the unique interplay between national economic policies and household financial behavior.

Empowering Health Initiatives

DP World Limassol, a leading figure in the port operations industry, has solidified its commitment to social responsibility by making a significant donation to Europa Donna Cyprus during Breast Cancer Awareness Month. This initiative underscores the company’s dedication to early detection and proactive support for those battling breast cancer.

Commitment To Community Well-Being

CEO Simon Pitout remarked that the donation is a testament to DP World Limassol’s longstanding belief in the power of collective action. “At DP World Limassol, we believe in the power of giving and are committed to making a meaningful and positive impact in our community,” he said. This contribution supports vital education and awareness efforts crucial for early diagnosis and improved patient care.

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Global Reach And Local Impact

While firmly rooted in its local community, DP World’s global operations span six continents and employ over 100,000 professionals. The company’s robust network in Europe, which includes more than 250 locations and critical infrastructures such as deep-sea terminals and logistics centers, further illustrates its pivotal role in driving economic progress. This extensive footprint enhances its capacity to support initiatives that benefit public health and community well-being beyond its operational boundaries.

Advancing Advocacy And Support

Praising Europa Donna Cyprus for its invaluable work, Pitout highlighted the organization’s significant efforts in empowering patients and advocating for better health care in Cyprus. By aligning with Europa Donna during a crucial month, DP World Limassol not only contributes financially but also strengthens the broader mission of health education and community support that is essential for reducing breast cancer mortality.

Introducing The Troodos Geopark Partner Programme

The Troodos Tourism Development and Promotion Company has launched a groundbreaking initiative to integrate local gastronomy, cultural assets, and tourism. The new Troodos Geopark Partner Programme builds on the region’s recent inclusion in the Global Geoparks Network, marking a significant step in enhancing its international profile.

Integrating Local Business With Cultural Legacy

This programme fosters collaboration between local enterprises and the region’s rich cultural heritage. Through participation in the initiative, restaurants, local product shops, and handicraft workshops will actively promote Troodos’s geological, ecological, and gastronomic values. The strategic alignment of these sectors is designed to generate a multiplier effect that bolsters regional tourism and local economic growth.

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Strategic Funding and Long-Term Vision

Supported by the LEADER initiative’s Rural Development Programme 2014-2020 and the broader local development strategy, the programme exemplifies effective public-private partnerships. The commitment to informing visitors about Troodos’s points of interest and connecting local agri-food products to traditional mountain gastronomies underscores a forward-thinking approach to sustainable tourism development.

Driving Tourism Through Voluntary Engagement

Businesses joining the programme agree to meet rigorous criteria designed to ensure the dissemination of comprehensive information regarding the region’s geological and cultural significance. By positioning themselves as ambassadors of Troodos’s natural and culinary heritage, these participants are key to enhancing the region’s appeal on a global stage.

For more information and to review the participation criteria, please visit the official Troodos website at My Troodos.

Revolutionizing Design With AI-Driven Foundations

Canva, the Australian creative powerhouse, has once again redefined the design landscape with the launch of its proprietary foundational model. Trained on an expansive library of design elements, this innovative model generates layered, editable designs rather than flat images. It supports a wide range of formats—from social media posts and presentations to whiteboards and websites—empowering users to move seamlessly from a simple prompt to fully realized, customizable designs.

Infusing Advanced AI Features Across The Platform

Enhancing its suite of creative tools, Canva has introduced an AI assistant with a chat-like interface that now spans multiple screens, including the design and elements tabs. This robust AI tool delivers media suggestions on demand, generates complex 3D objects, and even mirrors existing artistic styles, elevating the creative process. The new features enable collaborative work, allowing team members to interact directly with the bot via comment threads to iterate on designs in real time.

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Seamless Integration Of Design, Data, And Analytics

In addition to its breakthrough design model, Canva is redefining functional integration. Earlier innovations—such as the spreadsheet tool and the capacity to create mini-apps—are now interconnected, enabling users to harness data stored in spreadsheets to build dynamic widgets and gain repeatable insights. Further strengthening its market position, Canva has combined its design expertise with the ad analytics capabilities acquired from MagicBrief to launch Canva Grow, a full-stack marketing platform that leverages AI for both asset creation and performance measurement.

Expanding Capabilities With New Products And Reimagined Tools

The latest update brings a host of new features designed to streamline workflows. Users can now design interactive forms to collect feedback, moving beyond traditional tools like Google Forms, and create email templates that align with brand aesthetics for marketing and transactional communications. The recent acquisition of the pro design tool Affinity is also being reimagined, offering a unified interface that seamlessly integrates vector, pixel, and layout editing. This approach allows designers to effortlessly migrate their work between Affinity and Canva while capitalizing on AI enhancements across both platforms.

By merging cutting-edge AI technology with integrated data and analytics tools, Canva not only pushes the boundaries of creative design but also sets a new benchmark for full-service marketing innovation. This strategic evolution marks a significant milestone in the company’s journey, as it continues to empower users with tools that blend artistic vision with actionable insights.

The House has approved a pivotal law designed to refine the screening process for foreign direct investments (FDI), particularly those that may pose a threat to national security. This initiative signifies Cyprus’s commitment to aligning with contemporary EU regulatory frameworks and enhancing the security measures surrounding strategic sectors.

Regulatory Alignment With EU Mechanisms

Legislators underscored the necessity for Cyprus to integrate with the EU acquis, referencing the FDI Screening Regulation that became operational in October 2020. This regulation establishes a collaborative framework between EU member states and the European Commission, focusing on the assessment of investments on the grounds of security and public order. With this domestic measure, Cyprus is poised to contribute to a broader European security agenda.

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Key Provisions and Scope of the New Legislation

The new law mandates that any foreign investment reaching a threshold of €2 million will undergo scrutiny by a designated national monitoring authority. Special attention is given to acquisitions of land and immovable property, particularly when associated with critical infrastructures. To facilitate this, the government is actively mapping these vital assets while the finance ministry prepares interim guidelines to assist potential investors.

Clarifications and Enforcement Measures

Notably, the legislation distinguishes between foreign investors and individuals holding dual nationality, with the latter excluded from the new oversight regime. For designated foreign investors, the law requires advance notification of investment intentions, granting the national monitoring authority the discretion to enforce conditions or levy fines for non-compliance.

Political Debate and Legislative Outcome

During the plenary session, attempts by the opposition party, Akel, to introduce amendments were decisively overruled, signaling broad consensus on the importance of robust investment controls. This decisive legislative action reinforces Cyprus’s commitment to protecting its national security while ensuring compliance with EU directives.

Samsung is making a bold statement in the semiconductor industry by planning to deploy a cluster of 50,000 Nvidia GPUs. The South Korean tech giant intends to leverage these high-performance graphic processing units to establish an advanced facility, aptly dubbed the “AI Megafactory,” aimed at revolutionizing chip manufacturing across mobile devices and robotic platforms.

Strategic Investment in Cutting-Edge Technology

This high-profile collaboration underscores Nvidia’s pivotal role in the evolution of artificial intelligence. With its state-of-the-art Blackwell and upcoming Rubin GPUs, Nvidia has consolidated its market position, drawing interest from top-tier companies such as Palantir, Eli Lilly, CrowdStrike, and Uber. The engagement with Samsung further solidifies Nvidia’s influence, with strategic applications that promise dramatically enhanced performance in critical chipmaking processes.

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Enhanced Capabilities for Next-Generation Chips

In addition to deploying Nvidia’s GPUs, Samsung is set to integrate Nvidia’s simulation software, Omniverse, into its manufacturing workflow. This partnership is expected to adapt Samsung’s lithography platform to work seamlessly with Nvidia’s processing units, yielding a performance boost of up to 20 times. Such enhancements are crucial as Samsung also deploys these chips for running proprietary AI models on its devices.

Strengthening the Supply Chain and Ecosystem

Beyond its role as a customer and partner, Samsung remains a key supplier to Nvidia by providing high-performance memory components, including its fourth-generation high-bandwidth memory (HBM). Collaborative efforts to fine-tune HBM for AI applications highlight the interdependence of major industry players, further cementing the technological ecosystem necessary for sustained innovation in semiconductor design and manufacturing.

A Pivotal Moment for AI and Semiconductor Industries

As Nvidia’s CEO Jensen Huang continues to drive expansive market forecasts—including a $500 billion business portfolio from its current GPU line—the strategic initiatives with Samsung mark a significant milestone. With Nvidia recently achieving a historic $5 trillion market capitalization, this partnership not only strengthens its market leadership but also reinforces Korea’s ambitions in the AI sector, with support from the government and other prominent industry players such as SK Group and Hyundai.

This collaboration exemplifies how strategic investments and cross-industry partnerships are shaping the future of technology, positioning both Samsung and Nvidia at the forefront of the AI revolution in semiconductor manufacturing.