Unprecedented Growth Across All Levels

The tourism industry is marking historical milestones, breaking records and solidifying its resilience in a rapidly evolving economic landscape. Projections indicate that by 2025, the sector will reach new heights, with sustained momentum expected into 2026.

Strong Performance and Strategic Oversight

Deputy Minister of Tourism Kostas Koumis provided an in-depth overview of the sector during a recent session of the Parliamentary Committee on Economic and Budgetary Matters. He highlighted the notable increase in tourism’s contribution to Cyprus’s GDP, record-breaking revenue figures, and landmark visitor arrivals. This robust performance is complemented by enhanced air connectivity and the formulation of a new National Tourism Strategy, all of which are laying the groundwork for continued success.

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Record Metrics and Future Projections

Minister Koumis expressed optimism regarding the pace set to continue through 2026. Key indicators include:

• The approval of an updated National Tourism Strategy later in 2026.
• Robust international marketing initiatives to elevate Cyprus’s global profile.
• The introduction of a modern licensing and operational framework geared towards further enhancing the tourism product.

Notably, the tourism sector’s share of national GDP climbed from 13.3% in 2024 to 14% in 2025. Furthermore, between January and September 2025, visitor arrivals increased by 10.3% compared with the same period in the previous year and surged by 41% over three years. The first nine months of 2025 stand as the strongest in the history of Cypriot tourism, with Cyprus also recording the highest growth rate for overnight stays in the EU.

Budget Allocation and Investment Priorities

The tourism ministry’s budget for 2026 totals €74.6 million, with allocations strategically distributed to support promotional campaigns, enhance the tourism product through subsidy-linked initiatives, and cover operational costs. Among these expenditures, €27.7 million (37.1%) is dedicated to promotional campaigns, €14.9 million (20%) to tourism enhancement projects, and €19.5 million (25%) to operational initiatives. This comprehensive approach underscores the commitment to not only sustaining but also amplifying the sector’s growth trajectory.

Enhancing Air Connectivity

In the realm of air transport, Cyprus has made significant advances. Recent data from the Aviation Council International placed Cyprus second on a Europe-wide scale in improving air connectivity between 2025 and 2019, and top of the list in comparisons between 2025 and 2024. These improvements are largely attributed to the addition of direct flights to and from key airports in Europe and the Middle East.

Addressing Key Connectivity Vacuums

Deputy Minister Koumis also addressed existing connectivity gaps, notably the absence of a direct flight route between Larnaca Airport and Brussels. The Ministry of Transport has already initiated a competitive tender process to address this critical gap, further demonstrating a proactive approach to enhancing international accessibility.

Larnaca is at the forefront of a dynamic tourism boom, attracting substantial investment from both domestic and international stakeholders. Recently, the city has experienced a significant surge in development projects, signifying its evolution into a modern destination and a key player on the tourism map.

Escalating Demand And Strategic Approvals

Recent data from the Larnaca District Organisation of Local Government reveals a steady increase in tourism development applications over the last three years. Between 2023 and 2025, thirty-five permits were approved, with an additional twenty projects under review. This growth, driven by the popularity of short-term rental platforms such as Airbnb, underscores the market’s progressive transformation and Larnaca’s rising appeal.

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Efficient Governance And Sustainable Urban Growth

Authorities have highlighted that this trend reflects not only an uptick in construction but also the benefits of enhanced administrative efficiency. The streamlined licensing procedures and modernized services implemented by the EOA are designed to meet the growing developer demand while ensuring that every project meets high standards. This approach supports sustainable urban development and solidifies Larnaca’s reputation as a destination of choice.

Strategic Investment In Key Areas

Investment is notably robust along the Larnaca–Dhekelia coastal corridor, where ongoing road reconstruction and landmark projects like Larnaca: Land Of Tomorrow are reshaping the region. This strategic corridor, and neighboring areas such as Pervolia and Kiti near the airport, are emerging as vital economic zones. These projects are not only elevating the city’s profile but also paving the way for its next phase of urban expansion and economic vitality.

Conclusion

Larnaca’s current development trajectory confirms its position as a major tourism and business hub. With a strong foundation of efficient governance, strategic investment, and rising demand, the city is poised to continue setting new benchmarks in sustainable urban and tourism development.

Announcement and Meeting Details

Eurobank’s board of directors has summoned an extraordinary general meeting for December 3, 2025, where shareholders will be asked to approve a strategic merger with Eurobank Holdings S.A. The proposed merger will see Eurobank S.A. absorb Eurobank Holdings S.A., a move designed to foster operational efficiency and cost reduction.

Hybrid Meeting Format and Quorum Provisions

The meeting will be conducted in a hybrid format, offering shareholders the option to participate either in person at the Conference Centre in Nea Ionia or remotely via teleconference. Should the quorum not be met on the initial date, a subsequent meeting is scheduled for December 11, 2025, also utilizing the hybrid model.

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Strategic Rationale for the Merger

The merger is part of a strategic reverse hive-down aimed at reducing administrative and accounting costs while simplifying the legal structure. This maneuver is expected to streamline supervisory compliance, particularly following the resolution of legacy non-performing loan issues, thereby strengthening the bank’s market positioning for the future.

Share Buyback Programme Adjustments

In light of the proposed merger, Eurobank Holdings has temporarily suspended its share buyback programme. Notably, between October 20 and October 21, 2025, the bank repurchased 879,000 of its shares on the Athens Stock Exchange at an average price of €3.4156 per share, totaling €3,002,347.79. As of October 21, 2025, Eurobank Holdings held 54,228,394 of its own shares, representing 1.4749% of its paid-up share capital.

Forward-Looking Financial Strategy

The share buyback programme is set to resume under Eurobank S.A. following the completion of the merger and the subsequent listing of the merged entity’s shares on the Athens Stock Exchange, anticipated in mid-December 2025. The programme’s remaining authorised amount of €122,919,881.27 will be utilised, with an endpoint of April 29, 2026. All treasury shares held by Eurobank Holdings will be cancelled upon merger completion, subject to the approval of the European Central Bank.

Legal Framework and Execution

The merger process is governed by specific provisions under Articles 6–21, 30–34, and 140 of Law 4601/2019, Article 16 of Law 2515/1997, and relevant provisions of Law 4548/2018. Authorized representatives have been appointed to sign the necessary documents before a notary, ensuring that all procedural steps are adhered to with precision.

A New Chapter In Cyprus’ Sports Industry

The Cyprus Chamber of Commerce and Industry (Keve) has announced the creation of BAS Cyprus, the nation’s first Business Association of Sports. This pioneering initiative is designed to integrate the sports and business sectors, driving collaboration, innovation, and sustainable development across the region.

Fostering Investment And Innovation

The newly established BAS Cyprus is set to become a vital link for companies, organizations, and professionals operating in the sports arena. By building a robust network of partnerships and offering comprehensive training and representation, BAS aims to attract investment, catalyze innovation, and generate fresh employment opportunities. The initiative is positioned to elevate Cyprus as a regional hub for sports business and innovation.

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Bridging Business And Sport

Philokypros Roussounides, Keve Secretary General, highlighted the significance of this step as a means to bolster Cypriot sport through enhanced business engagement and international outreach. BAS Cyprus is envisioned as a bridge between entrepreneurship and sport, reinforcing international participation while contributing to the economic, social, and environmental development of the country.

Championing A Collaborative Future

BAS Cyprus is open to a wide spectrum of participants—from traditional businesses and sports clubs to startups and service providers. By fostering networking and strategic partnerships on both local and international levels, BAS is set to offer its members increased visibility and access to specialized knowledge crucial for strengthening their market positions.

Industry Leadership And Strategic Growth

Under the leadership of President Eva Pourkou, along with vice president Aristos Potamitis, general secretary Panos Georgiou, treasurer Marios Athanasiou, and board member Mary Charalambous Papamiltiadi, BAS Cyprus is poised to drive the evolution of the sports sector. As Cyprus capitalizes on untapped potential in the international sports arena, BAS emerges as a key player in uniting business acumen with sports excellence.

Keve’s commitment to supporting initiatives that propel the nation forward is evident in this strategic formation, promising to deliver lasting benefits for Cyprus’ sporting and economic landscapes.

Overview

The European Banking Authority’s 2024 annual report details a comprehensive effort to harmonize supervisory practices across the European Union. The report outlines strategic initiatives across prudential supervision, resolution and crisis management, digital finance, consumer protection, and the interim AML/CFT framework until the end of 2025. This marks a decisive step in implementing further recommendations from the EBA’s evaluation of regulatory efficiency.

Consolidating Prudential Supervision

The EBA’s European Supervisory Examination Programme for 2024 focused on critical areas such as liquidity and funding risk, interest rate risk, and the operationalization of recovery measures. With risk levels remaining stable amidst ongoing challenges in data quality, stress testing, and modelling assumptions, the EBA is set to intensify its monitoring activities for online deposit platforms and oversee compliance with Supervisory Outlier Tests in 2025.

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Advances in Resolution And Crisis Management

In the realm of resolution, the report highlights significant progress in operationalizing resolution tools, notably the bail-in mechanism in cross-border environments. Improved coordination among authorities, enhanced management information systems, and persistent efforts to refine data quality and legal recognition issues underpin this advancement.

Strategic Developments in Digital Finance

With digital finance at the forefront, the EBA has prioritized its preparations for the implementation of the EU’s Markets in Crypto-Assets Regulation. Efforts include the supervision of asset reference tokens and e-money token issuers, the development of an EU-wide supervisory handbook, and the coordination of workshops aimed at establishing a unified supervisory approach from the outset.

Enhancing Consumer Protection And AML/CFT Measures

The report also underscores improved cooperation and risk-based supervision among national authorities in consumer protection and AML/CFT. Notable progress has been achieved through AML/CFT college monitoring and implementation reviews, as the EBA prepares for the eventual transfer of AML/CFT supervisory responsibilities to the new EU Anti-Money Laundering Authority by the close of 2025.

Fostering A Common Supervisory Culture

Beyond sector-specific improvements, the EBA continues to champion supervisory convergence through robust cross-border initiatives including peer reviews, Q&A sessions, breach of Union law investigations, and comprehensive training programmes. In 2024 alone, 23 courses were delivered to over 3,000 participants, reinforcing best practices and aligning supervisory standards throughout the EU.

Future Trajectory

Looking ahead, the EBA is set to place greater emphasis on the effective implementation of the Single Rulebook. This strategic pivot will enhance supervisory outcomes and ensure the consistent application of regulatory measures, as reflected in the annual reports to the European Parliament and the Council under the Supervisory Review and Evaluation Process.

With these measures, the EBA reaffirms its commitment to building a unified and resilient supervisory framework, essential for navigating the complex regulatory landscape of the European financial sector.

Enhanced Cooperation For Sustainable Development

Greece and Cyprus have entered a strategic memorandum designed to strengthen collaboration in the mineral resources sector. Signed on October 23 in the presence of Cyprus’ Agriculture Minister Maria Panayiotou, the agreement reflects both nations’ commitment to leveraging advanced technologies and expertise to enhance mining and quarrying practices.

Innovative Policy And Environmental Stewardship

The memorandum establishes a framework for the exchange of technological insights and data, aimed at refining policy planning and sustainable development measures. Key provisions include the integration of circular economy principles, reprocessing of mining waste, and initiatives geared toward environmental protection and restoration. These efforts are in line with European Union directives to secure a sustainable and secure supply of critical raw materials.

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Technological Advancements And On-Site Demonstrations

During the Greek delegation’s visit to Cyprus, comprehensive presentations showcased innovative practices at several pivotal sites. At Vassiliko Cement Works, state-of-the-art technologies were introduced to mitigate carbon dioxide emissions and harness alternative fuel sources, including recycled waste and repurposed materials. At the Pareklisia quarrying zone, officials demonstrated an integrated development methodology aimed at optimizing aggregate production while restoring waste sites.

Pioneering Sustainable Mining Efforts

Additional visits to Skouriotissa and Apliki mines highlighted advanced methodologies for producing pure metallic copper through environmentally conscious leaching and electrolysis techniques. Plans for establishing a photovoltaic park at these sites further underscore the initiative’s commitment to achieving energy autonomy and reducing environmental impacts.

A Unified Vision For A Greener Future

The agreement not only cements bilateral cooperation but also sets a new industry benchmark by integrating innovative technologies and sustainable practices into resource extraction. This unified approach is poised to significantly reduce the environmental footprint of mining operations while promoting a resilient, sustainable industrial future.

Strategic Energy Implications

The Lebanese Cabinet has approved a pivotal agreement with Cyprus that demarcates the maritime boundary between the two nations. This development is expected to have far-reaching consequences for regional energy exploration and cross-border collaboration, potentially reshaping the leverage Lebanon holds in future resource extraction negotiations.

Pending Parliamentary Endorsement

While the Cabinet’s decision marks a significant step forward, the agreement now awaits ratification by the Lebanese Parliament. This additional legislative review underscores the careful balancing act required as Lebanon navigates its economic challenges while seeking to secure advantageous terms in its offshore negotiations.

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Technical And Legal Considerations

Historically, the delimitation agreement—originally stalled since 2007—was based on a midpoint delineation method that defined six specific points along the boundary. However, ambiguities persisted, particularly surrounding points 1 and 6. The Lebanese Projects Committee has recommended consulting foreign experts, legal specialists, and natural resource analysts to resolve these technical and legal intricacies before any new commitments are made.

Regional Geopolitical Dynamics

Given the national and regional stakes, the Lebanese government has called for a meticulous reexamination of the technical and legal frameworks underlying the agreement. The scrutiny is essential not only for ensuring robust bilateral terms with Cyprus but also for aligning the approach with pending maritime boundary issues involving neighboring nations such as Syria and Israel.

This agreement represents more than just a border delineation—it signals a recalibration of Lebanon’s strategic positioning in the Mediterranean energy landscape, at a time when securing sustainable economic advantages is critical to national recovery.

Cyprus is intensifying its scrutiny on undeclared income from digital channels, as a new audit reveals widespread non-compliance among roughly 300 individuals and entities—including several foreign residents. The investigation, spearheaded by advanced social media monitoring, highlights income omissions from platforms like OnlyFans, which surged in prominence during the pandemic as creators monetized their content through paid subscriptions.

Advanced Monitoring Uncovers Significant Gaps

The Cyprus Tax Department’s sophisticated analytical tools uncovered numerous cases where both local and foreign earners failed to report revenue. Instances of income reaching up to €500,000 have been detected, underscoring a critical gap in fiscal reporting as digital transactions continue to grow.

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Diverse Professional Sectors Under Scrutiny

The audit did not solely target digital creators; it also extended to diverse sectors including beauticians, taxi drivers, hairdressers, travel agents, and small business owners. Notably, over 50 taxi operators were found to have undeclared income surpassing €100,000—often processed via electronic payments—highlighting a broader trend of non-compliance across various service-driven industries.

EU Directives and Enhanced Transparency Measures

The enforcement framework has been bolstered by EU Directive 2011/16/EU (DAC7), which mandates that digital platforms, since July 2021, submit comprehensive user data—such as identities, tax residences, and annual incomes—directly to national tax authorities. This system, supplemented by the One Stop Shop (OSS) VAT mechanism, is instrumental in closing regulatory loopholes and ensuring cross-border financial transparency.

Expanding Focus to a Broad Range of Digital Platforms

Beyond OnlyFans, authorities are extending their audits to include income generated from YouTube, Twitch, Instagram, and other online marketplaces. By correlating bank records with online activity and spending patterns, regulators are keenly focused on individuals whose lifestyles do not match their reported incomes, ensuring equitable tax compliance across traditional and digital domains.

Implications for the Evolving Online Economy

While OnlyFans is primarily recognized for adult content, its platform also serves a wide range of professionals including musicians, fitness trainers, and artists. This comprehensive local investigation into digital earnings underscores the principle that all income—whether digital or traditional—must be declared under Cypriot law. With formal notices set to be dispatched, and the threat of backdated taxation, fines, and even criminal proceedings looming over persistent offenders, the tax department aims to safeguard fiscal integrity in an increasingly digital economic landscape.

International investment continues to assert its robust presence in Cyprus’ real estate market, with 1,669 properties sold to overseas buyers over the past year, as confirmed by Interior Minister Constantinos Ioannou. This sustained global interest underscores the island’s multifaceted appeal to investors from diverse regions, enhancing the attractiveness of Cypriot real estate.

Rising International Acquisitions

Between September 2024 and September 2025, 962 homes were purchased by foreign buyers, segmented into 385 transactions by European nationals and 577 by non-European investors. Paphos emerged as a hotspot, where heightened international demand has contributed to significant price appreciations. In addition, the market saw 350 plot sales — with 218 to EU citizens and 132 to non-Europeans — complemented by 357 field transactions predominantly to European buyers.

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Distinct Regional Preferences

Buyer preferences reveal a clear geographic split. Europeans have shown a marked preference for Limassol, whereas non-EU buyers are increasingly attracted to Larnaca’s growing momentum. In Nicosia, the foremost buyers were Greeks with 403 properties, followed by Romanians, Russians, and Lebanese. Famagusta recorded a dominant presence of British buyers, while in Larnaca, regional investors such as Israelis, Lebanese, and Britons have been particularly active. Limassol continued to attract substantial investments from Russians, Israelis, and Greeks, while Paphos remained a favourite among British, Israeli, and Russian buyers.

Transactional Dynamics Across Districts

The Department of Lands and Surveys (DLS) provided an expansive view of the market, noting 19,155 transfer cases in 2024 covering 21,469 properties. These transactions represent a declared value of €3.94 billion, with an accepted transfer duty value of €4.30 billion. Limassol led in both transaction volume and value, registering 5,054 cases amounting to over €1.43 billion declared. Nicosia, Paphos, and Larnaca followed, while Famagusta remained the smallest segment, reflecting differentiated regional market dynamics.

Robust Overseas Activity

Further evidence of the market’s vitality comes from the DLS’s dataset on foreign buyers, which recorded 6,754 international transactions in 2024. Among these, 2,785 were by EU nationals, with 3,969 transactions from non-EU buyers, and July emerged as the peak month with 703 non-EU contracts filed.

Challenges In Data Collection

Minister Ioannou clarified that while no hotel units were sold during this period, the data for apartment buildings remains incomplete due to challenges in tracking developments without updated or horizontally divided title deeds. Once a building is registered, each individual unit—be it an apartment, shop, or office—is recorded separately, ensuring detailed market transparency.

Global Standing Among Elite Destinations

In a striking addition to the global tourism roster, Cyprus now appears in the coveted Top 20 list of island destinations, a ranking that positions the nation alongside internationally renowned locales like Bali and Hawaii. According to data from the National Bank of Greece, Cyprus has secured the 10th spot, reflecting its growing appeal in a fiercely competitive market. Notably, destinations such as Majorca lead the list, with Phuket and Hawaii rounding out the top tier.

Investing in Trends and Infrastructure

A deeper analysis by the Economic Analysis Directorate of the National Bank of Greece highlights a critical factor for sustaining increased visitor interest: robust infrastructure investment. The study emphasizes that for destinations like Cyprus and other national islands, modernizing essential services is not only about maintaining allure but is vital for enduring competitiveness. These investments focus on enhancing transportation, energy, water supply, and waste management systems, paralleled by efforts in accommodation and hospitality upgrades.

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Economic Returns and Strategic Vision

According to the findings, Greek islands face an estimated additional investment need of €3.5 billion annually—with a decade-long total of approximately €35 billion—to manage seasonal population surges and address inherent island-specific challenges. Such projects are projected to boost tourism revenue by 45%, adding roughly €5 billion, while national GDP could rise from €24 billion to an estimated €30 billion over the next ten years. This transformative approach is expected to yield multiplicative benefits in employment and exports, turning increasing visitor numbers into long-term economic strength.

Implications for Cyprus

The insights from Greece’s investment strategy offer a valuable roadmap for Cyprus. As a prominent island destination, Cyprus must prioritize infrastructure enhancements and modernization of its tourism and residential facilities to sustain its competitive edge. The real challenge lies not in just attracting greater numbers, but in translating this influx into stable, revenue-generating growth and ensuring optimal management of its rising success.