Overview Of Inflation Trends

Cyprus recorded a remarkable achievement in September 2025 by maintaining a 0.0% annual inflation rate, positioning it as the EU member state with the lowest inflation according to the latest figures released by Eurostat. This outcome contrasts with a broader European backdrop, where inflationary pressures continue to build.

Euro Area And European Union Dynamics

Across the euro area, annual inflation increased to 2.2% in September from 2.0% in August, up from 1.7% a year earlier. In the wider European Union, the inflation rate ascended to 2.6% in September from 2.4% in August, a rise from 2.1% recorded a year before. These figures underscore a steady upward trajectory in consumer price levels over the past year.

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Diverse Economic Landscapes Across Member States

Within the EU, Cyprus stands out with its unchanged rate, followed by France at 1.1% and both Italy and Greece at 1.8%. At the opposite end of the spectrum, Romania, Estonia, Croatia, and Slovakia experienced much higher rates of inflation, with Romania at 8.6%, Estonia at 5.3%, and Croatia and Slovakia both at 4.6%. Such disparities highlight the varied economic conditions across the Union.

State By State Inflation Shifts

Comparative data from August 2025 indicates that annual inflation declined in eight member states, remained stable in four, and increased in fifteen, signaling broad-based upward price pressures that continue to challenge policymakers and businesses alike across the Union.

Components Driving The Inflation Surge

Examining the contributing components, the service sector emerged as the largest driver of inflation, adding 1.49 percentage points to the annual rate in the euro area. This was closely followed by the food, alcohol, and tobacco segments which contributed 0.58 percentage points. Non-energy industrial goods added 0.20 percentage points, while energy prices exerted a slight negative influence of -0.03 percentage points. These contributions reflect the complex interplay of various sectors in shaping overall consumer price dynamics.

Overview

Cyprus is currently the venue for one of the most prominent events in the European hospitality and catering sectors – the 91st General Assembly of HOTREC. Representing a coalition of hoteliers and catering entrepreneurs from 39 European nations, this annual gathering plays a pivotal role in shaping industry trends and policy. The event underscores the island’s strategic significance in the tourism sector, particularly as it sets new records in visitor arrivals this year.

Prestigious Attendance at Aliathon Hotel

The opening ceremony at the Aliathon Hotel featured esteemed dignitaries, including the President of the Republic, who delivered an inspirational address highlighting the conference’s importance to Cyprus. President Nikos Christodoulides emphasized that this prestigious event not only reinforces the region’s commitment to tourism but also signals a historic surge in visitor arrivals, positioning Cyprus as a key market on the global tourism map.

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Two Days of Strategic Dialogue

Over the course of two days in Paphos, delegates will engage in a series of critical discussions aimed at exchanging best practices and coordinating policies that will influence the future of European hospitality. The agenda includes strategic networking sessions, panel discussions focusing on the evolving tourism landscape, and debates on innovation and market challenges.

Industry Leaders in Conversation

Among the notable participants are Cyprus’s Deputy Minister of Tourism, Kostas Koumis, the President of PASYXE, Thanos Michailidis, and HOTREC President Alexandros Vasilikos. Their collective presence underscores the event’s importance as a platform for policy coordination and industry representation. Additionally, discussions will cover the integration of technology, education reform, and professional development, all geared towards strengthening the sector’s future growth and resilience.

Robust Growth In Cyprus Tourism

The latest report by the Cyprus Statistical Service (Cystat) reveals robust growth in Cyprus’ tourism sector, with a 12 percent increase in tourist arrivals in September 2025 compared to the same period last year, bringing the visitor count to 570,635. For the January to September period, tourism numbers surged by 10.3 percent, reaching 3,604,790, underscoring the island’s sustained appeal to international travelers.

Key Source Markets Driving Growth

The United Kingdom continues to dominate as the primary source market, constituting 31.4 percent of total arrivals with 179,293 visitors. Notably, Israel has emerged as a strong contributor, accounting for 14 percent (80,115 arrivals), while Poland (7.9 percent or 45,019 tourists) and Germany (6 percent or 34,348 visitors) follow closely behind. Germany and Israel, in particular, have recorded impressive year-on-year growth of 39.7 percent and 46.8 percent respectively, illustrating a dynamic shift in tourist origins.

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Diversification And Market Adjustments

Additional markets such as Sweden, Romania, and Greece contribute modestly to the influx, with percentages ranging from 3 to 3.6 percent. Meanwhile, arrivals from Romania and Austria witnessed gains of 22.2 percent and 26.4 percent respectively, although the United Kingdom experienced a marginal decline of 0.9 percent. Slight downturns observed in France, Switzerland, Norway, and Sweden indicate that market variations remain a factor in the evolving tourism landscape.

Visitor Motives And Patterns

Analysis of travel purposes shows that an overwhelming 84.8 percent of visitors are drawn to Cyprus for holidays, complemented by 10.1 percent visiting friends and relatives, and 5 percent traveling for business. These consistent patterns reaffirm the island’s established reputation as a premier holiday destination.

Resilient Return Travel Trends

On the domestic front, the number of Cypriot residents returning from trips abroad climbed 6.4 percent to 166,129 in September 2025. Greece leads as the preferred destination for returning residents, accounting for 35.8 percent of the total return traffic, followed by notable numbers from Russia, the United Kingdom, and Italy. Despite global travel fluctuations, holiday travel remains the dominant purpose among Cypriot residents, demonstrating a steady trend towards leisure-based journeys.

Data Collection And Methodology

Cystat’s comprehensive survey, conducted at major entry points including Larnaca and Paphos airports along with administrative sources such as port arrivals, captures all individuals passing through passport control. It is important to note that these statistics reflect the number of trips rather than unique individuals, as travelers may undertake multiple trips within the period.

Exceptional Growth Paves the Way

Cyprus has distinguished itself as the leading force in European tourism for 2024, recording the highest year-on-year growth rate in overnight stays among European Union member states. Eurostat confirmed a significant 14.5 percent increase in nights spent at Cypriot accommodation facilities compared with 2023, edging out Malta by a narrow margin, which posted a 14.4 percent increase.

EU Trends and Comparative Performance

While Cyprus and Malta set the pace at the top, other EU countries also registered notable gains. Latvia stood out with a 7.4 percent increase, contributing to an overall EU improvement where the total number of nights spent in tourist accommodations surpassed three billion for the first time. The EU as a whole experienced a modest growth of 2.7 percent in overnight stays in 2024 compared to the previous year.

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Domestic Versus International Impact

The growth in tourism was fueled predominantly by domestic travel, which accounted for 51.9 percent (1.57 billion nights) of the total visits across the EU. International travelers contributed 48.1 percent (1.45 billion nights), with a significant share of these visitors coming from other EU countries. Specifically, 61.6 percent of the international nights were recorded by tourists from within the Union, while visitors from other European countries accounted for 21.3 percent. Guests arriving from outside Europe, particularly North America, made up the largest portion of non-European travelers at 7.5 percent, followed by Asia at 4.9 percent, Central and South America at 2.3 percent, Oceania at 1.0 percent, and Africa at 0.8 percent.

Accommodation Dynamics and Sector Insight

The accommodation sector demonstrated varied trends with nearly two-thirds (62.8 percent) of all overnight stays taking place in hotels and similar establishments. Holiday rentals and short-stay apartments captured 23.7 percent of the market, whereas camping grounds, recreational vehicle parks, and trailer parks comprised the remaining 13.5 percent.

Conclusion: Strategic Opportunities Ahead

The robust performance of Cyprus underscores a broader European trend of rising tourism that is redefining travel dynamics across the Union. For industry stakeholders and policymakers, these figures offer a valuable barometer of market confidence and signal potential strategic opportunities to harness burgeoning tourism demands in both domestic and international markets.

BrightPool Licence Withdrawn

The Cyprus Securities and Exchange Commission (CySEC) has taken a decisive step by withdrawing the Cyprus Investment Firm licence from BrightPool Ltd. On October 13, 2025, CySEC formally cancelled the authorisation, number 378/19, following the company’s decision to relinquish its status. This move signals the regulator’s proactive approach in aligning market operations with stringent compliance standards.

Liquidation of SCITUS Global Real Estate

In a parallel regulatory development, external manager GMM Global Money Managers AIFM Ltd initiated the dissolution and liquidation process for the SCITUS GLOBAL REAL ESTATE compartment. The compartment is part of SCITUS GLOBAL CAPITAL HOLDINGS RAIF V.C.I.C. LTD, a Registered Alternative Investment Fund (RAIF). Until the dissolution and liquidation processes are fully completed and all requisite documents are submitted, the compartment will continue to be listed in the RAIF registry with a notice stating “under liquidation”.

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Liquidation Process for GRAVITY Fund I

Similarly, AFICAP MANAGERS LTD has informed CySEC of the commencement of the dissolution and liquidation procedures for the GRAVITY FUND I compartment. This compartment is managed under GRAVITY FUND RAIF V.C.I.C. PLC, also registered as a RAIF. Consistent with regulatory guidelines, the compartment will remain on the RAIF registry marked “under liquidation” until the process is finalized and all necessary documentation is received by the regulator.

These regulatory actions underscore CySEC’s steadfast commitment to market integrity and compliance. By ensuring that these investment vehicles undergo proper dissolution and liquidation procedures, CySEC reaffirms its dedication to maintaining transparency and rigor in the financial landscape.

The government is set to garner over €1 billion in revenue from airport concession fees during the period 2006-2025, under its longstanding agreement with the managing company HERMES. In the current fiscal year alone, the concession fees are projected to exceed €90 million, marking a 7% increase compared to 2024. These figures have been meticulously incorporated into the Ministry of Transport’s budget, which is scheduled for presentation at 9:15 a.m. before the Parliamentary Committee on Economic Affairs by Minister Alexis Vafeadis.

Robust Budget and Strategic Investments

The Ministry’s budget is described as monumental by Cyprus standards, reaching an estimated €1.61 billion for 2026. This comprehensive financial plan encompasses a dedicated allocation of €1.05 billion from the ministry’s own funds, supplemented by an additional €556 million earmarked for projects managed through the Ministry of Transport in collaboration with other departments.

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Minister Vafeadis has outlined a rigorous schedule of projects, including ongoing works worth €539 million from the ministry’s portfolio and an extra €273 million from other government bodies—totaling €812 million. Concurrently, a further €547 million in projects is under tender, split between €272 million by the ministry and €275 million from other sectors. Over the next 12 months, the ministry is poised to sign contracts for works worth approximately €244 million, with additional projects from other ministries bringing the total to €252 million.

Revitalizing Air Transport Infrastructure

The significant investments extend to airport infrastructure, where major enhancements are underway. With the completion of Phase B, Larnaca Airport’s capacity will increase to 12.4 million passengers per annum, while Paphos Airport will expand to accommodate 5 million passengers annually. These improvements are expected to facilitate sustained growth in air traffic, yielding substantial economic benefits.

Specifically, Larnaca Airport is set to undergo an expansion covering 20,000 square meters that includes a new terminal wing with integrated departure and arrival gates, additional baggage claim belts, dedicated areas for passport control and security checks, an expanded commercial zone, and increased aircraft parking capacity. In parallel, Paphos Airport is implementing enhancements to boost terminal capacity by approximately 30%, streamline passenger processing, and improve operational flexibility through the extension of its southern parallel runway.

Connecting Communities and Enhancing Roadways

The comprehensive budget also prioritizes key transportation links that connect mountainous and semi-mountainous regions with urban centers. Among the flagship road projects are:

• The Peripheral Motorway of Nicosia: Phase B3 valued at €35.6 million and Phase C at €113.05 million.
• The A2 Motorway from Limassol to Saïtta, with an initial phase costing €83.3 million, with project commencement slated for the third quarter of 2026 and an anticipated expenditure of €8.3 million within that year, targeted for completion over three years.
• The Study and Construction of the Denea – Akaki – Astromeriti segment is estimated at €129.7 million.
• The Astromeriti – Evrichi Motorway is estimated at €88.6 million, with project milestones already in motion.
• The Motorway from Nicosia to Palaichori, budgeted at €77.6 million, is scheduled to commence in March 2023 and is anticipated to conclude by September 2026.

Mitigating Traffic Congestion and Advancing Public Transport

In addition to large-scale infrastructure projects, the government is dedicated to alleviating traffic congestion and improving urban mobility. Initiatives include:

• Comprehensive augmentation and optimization of the road network.
• Implementation of a Sustainable Urban Mobility Plan (SUMP) and enhanced public bus services.

Specific projects under these categories involve the completion of phases for the Nicosia Peripheral Motorway—Phase B3 commencing on July 28, 2025 (with an estimated €35.6 million spent in 2026 over 36 months) and Phase C starting in the first quarter of 2026, with a projected cost of €113.05 million and an expected duration of 40 months. Moreover, the study and construction of the Denea – Akaki – Astromeriti route is scheduled to begin in the first quarter of 2026 with a 3.5-year timeline.

Upgrading Public Passenger Transport Services

The plan also includes a strategic enhancement of public passenger services. The budget allocates €87.7 million towards contract agreements over the year, extending services across roughly 40,000 kilometers. Notable measures include the expansion of the ‘Pame Express’ service, which currently handles 10,000 passengers per month, and the extension of the Door-to-Door service from 27 to 29 schools, benefiting approximately 1,050 students per route.

Additional investments of €43.6 million are earmarked for new bus shelters, upgraded stops, and infrastructural improvements. These measures are complemented by initiatives that reduce student fares, offer 50% subsidies for elderly riders with motion cards, and provide free transportation for low-income pensioners, all supported by heightened technical oversight and the addition of dedicated bus lanes.

This robust budget and strategic deployment of funds underscore the government’s commitment to elevating the nation’s transportation infrastructure, thereby stimulating economic growth and enhancing the overall quality of life for citizens.

Regulatory Landscape And Exclusivity Concerns

Stringent regulatory measures and legal exclusivities underscore the current discourse surrounding online casino operations in Cyprus. The sole operating license issued to date is for the integrated casino resort in Limassol and its satellite outlets. This legal framework, established under Law 124(I)/2015 and the 2017 concession agreement, grants exclusive rights to the physical casino entity, prompting regulators to assess whether such exclusivity should extend into the digital realm.

Exploring International Models And Regulatory Alternatives

The National Gaming Authority is actively examining international regulatory models, including those employed in Malta and Gibraltar, where online casinos are licensed exclusively for operations aimed at offshore markets. This comparative analysis aims to tailor international best practices to the specific nuances of the Cypriot market, ensuring that any regulatory evolution is both comprehensive and adaptable.

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Institutional Preparedness And Strategic Oversight

Emphasizing a robust institutional capacity, the regulatory body has highlighted its extensive expertise, certified information systems, and specialized personnel, underpinned by reputable international collaborations. The Authority remains vigilant, systematically monitoring global developments and ready to offer data-driven recommendations to fortify Cyprus’s regulatory framework should the online casino sector be legalized.

Economic Implications And The Call For Legal Reform

Industry advocates, including the Cyprus Online Gaming Association (COGA) – which features major betting companies such as Stoiximan, Bet365, and Bet On Alfa – argue that a formal regulatory framework would not only safeguard players but also bolster public revenues. In the absence of legislation, legitimate operators and public finances remain vulnerable, while unauthorized platforms continue to expose citizens to potential fraud and significant financial losses.

Conclusion: Strategic Regulation For Sustainable Growth

As Cyprus contemplates the extension of its casino licensing to include online gambling, the emphasis remains on transparency, accountability, and consumer protection. The evolution of this regulatory paradigm promises to safeguard public interests while promoting a balanced environment that facilitates innovation alongside fiscal and operational discipline.

Renowned as one of the few bastions of reliable information in an increasingly chaotic digital world, Wikipedia faces a pivotal challenge. Recent data from the Wikimedia Foundation reveals an 8% decline in human pageviews year-over-year—a trend attributed to shifts in user behavior, evolving bot detection methods, and the rising influence of generative AI and social media.

The Evolving Landscape Of Digital Information

Historically celebrated as the last good website amid digital toxicity, Wikipedia now confronts a nuanced transformation in how audiences seek and consume knowledge. The Wikimedia Foundation’s updated bot detection timelines indicate that much of the previously inflated traffic during May and June originated not from human users, but from sophisticated bots designed to bypass detection. Such revelations underscore the complex dynamics currently reshaping digital engagement.

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Generative AI And Social Media: Changing The Search Paradigm

Marshall Miller of the Wikimedia Foundation outlines a critical point: generative AI and social media platforms have fundamentally altered the way information is delivered. With search engines deploying AI-driven answer engines that bypass traditional web pages and younger audiences gravitating toward social video for knowledge, the role of comprehensive, volunteer-curated sites like Wikipedia is evolving. Even as industry leaders like Google challenge these claims, the trend signals a shift in digital behavior that could redefine traditional content consumption.

Challenges For A Volunteer-Driven Model

The decline in direct user visits has broader implications beyond mere numbers. A reduction in site engagement not only jeopardizes the growth of Wikipedia’s dedicated volunteer community but also undermines its funding model. Volunteers, many of whom have made significant contributions—ranging from content curation to crisis intervention—are vital to maintaining the site’s integrity and independence. This model faces risk if fewer users actively participate and contribute to Wikipedia’s enriched content.

Toward A Sustainable Future

In response to these industry shifts, Wikipedia is proactively adjusting its strategies. The foundation is developing a robust framework for content attribution, expanding outreach through specialized teams tasked with engaging new readers, and actively seeking volunteer participation. These steps showcase a commitment to preserving the platform’s legacy as a trusted source, even as information ecosystems evolve.

Miller’s appeal is clear: companies leveraging Wikipedia content in AI, search, and social media must create mechanisms that direct traffic back to the original source. This approach not only sustains the encyclopedia’s volunteer ecosystem but also reinforces the importance of human-curated, verifiable information in an era dominated by machine-generated content.

Ultimately, the call to action extends to every user of digital media. When seeking information online, look for credible citations, visit original sources, and support the dedicated creators behind trusted content. As the digital landscape shifts, the preservation of reliable, human-curated knowledge will remain a cornerstone of an informed society.

Partnership Driving Growth

EssilorLuxottica has reported robust revenue growth in the third quarter, fueled by its strategic collaboration with Meta. As detailed during the earnings call, the Ray-Ban Meta smart glasses significantly boosted the company’s wearable product category. With a year-over-year sales increase of 11.7% to 6.9 billion euros, more than 4 percentage points of that growth is directly attributable to the wearables segment.

Innovative Product Launches

The partnership, initiated in 2019, has expanded to include major brands under the Luxottica umbrella, such as Oakley and ongoing collaborations with Prada. The recent Meta Connect event in Menlo Park featured exciting new releases, including the $799 Meta Ray-Ban Display glasses with a unique neural-powered wristband, along with the $499 Oakley Meta Vanguard and $379 Ray-Ban Meta (Gen 2) glasses. These products underscore a significant shift towards smart, internet-connected eyewear that leverages Meta’s AI-powered digital assistant.

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Market Trends And Future Outlook

EssilorLuxottica’s CFO, Stefano Grassi, expressed strong optimism for the near-term outlook, driven by the launch of diverse new products stemming from the Meta Connect event. With wearables anticipated to eventually replace many functionalities of today’s smartphones, the company is poised to accelerate its capacity to meet growing demand, aiming to surpass the previously set target of 10 million units by the end of 2026.

Competitive Landscape

The smart glasses market is witnessing intense competition, with tech heavyweights such as Alphabet, Alibaba, Apple, and OpenAI making their entry. Alphabet, for instance, recently announced a $150 million investment with Warby Parker, while Alibaba unveiled its own AI-powered smart glasses featuring the Quark digital assistant. This flurry of activity underscores a broader industry trend towards the integration of wearable technology with advanced AI capabilities.

Conclusion

EssilorLuxottica’s robust performance and strategic initiatives with Meta highlight a pivotal moment in consumer electronics and wearable innovation. As smart glasses continue to evolve into multifunctional digital devices, both legacy and emerging brands are set to redefine how personal technology converges with everyday life.

Major Infrastructure Investments Set To Redefine Regional Air Travel

The expanding airport infrastructure in Cyprus is poised to significantly bolster operational capacity and passenger experience. Recent agreements between the state and Hermes Airports, the managing entity of the island’s international air terminals, have paved the way for ambitious upgrades at both Larnaca and Pafos airports. The renewed concession agreement, extended by 18 months to November 11, 2032, marks a pivotal moment in modernizing these key transportation hubs.

Larnaca Airport: A Four-Level Terminal Expansion

The comprehensive development at Larnaca Airport focuses on a multi-level expansion of its terminal building. Initiated at the end of March following the successful completion of the finance package, the project is spearheaded by a consortium comprising Bouygues Batiment International SAS and Iacovou Brothers (Constructions) Ltd. With a total investment of €170 million fully financed by Hermes Airports, the expansion covers approximately 20,000 square meters. Notable improvements include the addition of a new wing with dedicated arrival and departure gates, enhanced baggage claim belts, upgraded passport and security control areas, expanded commercial space, and increased aircraft stand capacity.

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Project Breakdown

Key initiatives at Larnaca include the development of new facilities across distinct levels:

• Basement Level: Installation of new electromechanical spaces alongside an upgraded freight reception area.
• Level 1: Expansion of the baggage claim area with the addition of a new conveyor belt.
• Level 2: Creation of an enlarged space for passport and security screening, along with new administrative offices.
• Satellite Structure: Construction of a single-story satellite building adjacent to the existing aircraft parking area, designed to house four new passenger waiting lounges and provide both boarding and deplaning functionality, with future expansion capabilities.
• Additional Infrastructure: Establishment of a new aircraft parking area to streamline operations.

Upon completion, the terminal’s capacity is expected to rise dramatically, allowing it to handle up to 12.4 million passengers annually.

Pafos Airport: Enhancing Efficiency And Capacity Through Focused Expansion

At Pafos Airport, a single-level expansion project is underway to deliver a 30% boost in terminal capacity. This targeted upgrade is designed to refine passenger experience and streamline procedural efficiency. The project encompasses the addition of advanced electromechanical installations, an expanded baggage claim area with a new belt, and increased operational space for passport and security clearances. The commercial area is similarly set for enhancement, ensuring that the airport delivers superior service while maintaining optimal functionality.

A Strategic Commitment To Modern Air Transport

These projects underscore a strategic commitment to modernize Cyprus’s air transportation infrastructure. With the Phase 2 works slated for completion in 27 months at Pafos and 30 months at Larnaca, Hermes Airports is realigning its long-term vision to meet growing demand. Since the original 25-year concession took effect on May 12, 2006, these developments represent a forward-thinking investment framework geared to support forecasted passenger numbers, which will reach 5 million annually at Pafos. Such asset enhancements not only facilitate a smoother travel experience but also strengthen the region’s position as a critical air transport hub in the Eastern Mediterranean.