Cyprus’ tourism sector is adapting to a noticeable shift in traveller behaviour. The traditional pattern of booking summer holidays months in advance, giving hotels and tourism businesses clear visibility over demand, is gradually giving way to shorter booking windows.

More travellers are now making decisions much closer to departure, comparing prices across destinations, seeking greater flexibility and waiting longer before confirming their plans.

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Rising living costs, geopolitical uncertainty and fluctuating transport prices have all contributed to this trend. For Cyprus, where tourism remains one of the economy’s key sectors, the change is reshaping how businesses plan and respond to demand.

The New Booking Horizon

International booking platforms indicate that forecasting tourism demand has become more challenging as booking windows continue to shorten. In many cases, a clearer picture of demand only emerges a few weeks before arrival.

For hotels, airlines and tourism businesses, that means making faster decisions on staffing, pricing and capacity while operating with less visibility than in previous years.

Shorter booking windows have also increased pricing pressure. Unsold rooms and airline seats are more likely to be discounted closer to departure, helping support occupancy but also creating pressure on profitability.

Cyprus Cannot Compete On Price Alone

Price, however, is only one part of Cyprus’ tourism offering. Safety, stability, hospitality, climate, culture and the overall visitor experience remain among the island’s strongest competitive advantages.

As travellers increasingly seek personalised experiences and authentic destinations, maintaining product quality may prove just as important as remaining price competitive.

That places greater emphasis on tools such as real-time market data, dynamic pricing and more targeted marketing in key source markets. Expanding conference, sports, cultural and gastronomic tourism could also help reduce seasonality and diversify demand throughout the year.

What The Next Phase Requires

Shorter booking horizons are becoming an increasingly important feature of the global tourism market, requiring destinations to adapt more quickly to changing consumer behaviour.

For Cyprus, the challenge extends beyond increasing visitor numbers. Maintaining the quality and long-term competitiveness of the tourism product will require continued investment in innovation, differentiation and visitor experience.

Air connectivity is also becoming increasingly important. As travellers make decisions closer to departure, flight availability and convenient connections can play a greater role in destination choice. Technology is likely to become another important differentiator. Access to real-time information on demand, pricing and traveller behaviour can help tourism businesses respond more quickly to market changes.

Meeting these challenges will require continued cooperation between the public and private sectors as Cyprus works to strengthen the resilience and competitiveness of its tourism industry.

Artificial intelligence is already reshaping the economy, labour market and education, but human judgment and values will remain essential, Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou said on Thursday during the University of Cyprus postgraduate graduation ceremony.

Speaking to graduates, Damianou said AI is no longer a prospect or a theoretical discussion, but a technology that is already influencing Cyprus’ economy, workforce and competitiveness.

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The Real Question Is Human, Not Technological

“The essential question remains the same and more important than ever: how do we ensure that technology serves humans and not the other way around?” Damianou said.

He referred to recent discussions at the G7, where world leaders met executives from major AI companies, including OpenAI, Google DeepMind and Anthropic. Damianou also cited OpenAI chief executive Sam Altman’s warning that governments should not outsource their responsibilities to AI companies.

According to the deputy minister, the challenge is not only to develop more advanced AI systems, but also to ensure they serve people, democracy and society.

Why Cyprus Must Move Quickly

Damianou said preparing the workforce for technological change will be critical to Cyprus’ future competitiveness.

Citing World Economic Forum estimates, he noted that around 39% of existing skills are expected to change or become less relevant by 2030, while six in 10 workers will require training or retraining within the next five years. He said those figures underline the importance of continuous learning throughout a person’s career.

Universities As Engines Of Adaptation

Universities, Damianou said, have an important role to play not only in producing knowledge, but also in helping societies innovate and adapt to change.

He described the University of Cyprus as the country’s leading institution for research, innovation and knowledge creation, highlighting its research activity, international partnerships and contribution to developing highly skilled talent. He also referred to the university’s continued presence in the QS World University Rankings 2027.

Policy, Talent And The Innovation Economy

Turning to government policy, Damianou said Cyprus is working to build a more competitive, outward-looking and technology-driven economy by strengthening links between research and business, supporting the responsible use of new technologies and promoting entrepreneurship.

He also referred to the Minds in Cyprus initiative, which aims to encourage Cypriot scientists and professionals living abroad to return and contribute to the country’s development.

According to Damianou, the objective is to ensure that young professionals have genuine opportunities to build their careers in Cyprus. “When I chose as a young scientist to return to Cyprus, the conditions and opportunities that exist today did not exist,” he said.

Cyprus Is Expanding Its Innovation Economy

Damianou said Cyprus has made significant progress in recent years. He pointed to the country’s highest economic growth rate in the European Union during the first quarter of 2026 and said the technology sector now accounts for around 15% to 16% of GDP, making it the fastest-growing part of the economy.

He also said Cyprus’ startup ecosystem has recorded the highest growth rate in Europe for the third consecutive year, with five times more startups than in 2020.

According to Damianou, Cyprus has strengthened its position as an emerging regional hub for innovation and technology.

Character Still Matters In The Age Of AI

Concluding his address, Damianou told graduates that technological progress does not diminish the importance of human judgment and values.

Using Michael Jordan as an example, he said success is shaped not by individual setbacks, but by the ability to keep moving forward despite uncertainty.

The International Maritime Organization (IMO) has temporarily suspended its evacuation plan for vessels trapped in the Persian Gulf after an attack on a merchant ship in the Gulf of Oman, underscoring how quickly security conditions in one of the world’s most sensitive waterways can destabilize global shipping.

The UN shipping agency said the decision followed an attack on a vessel that had passed through the Strait of Hormuz. Although the ship was not operating under the IMO evacuation framework, the incident was enough to halt a mission that had only just begun moving stranded ships and crews out of the region.

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Safety Concerns Override Momentum

IMO Secretary-General Arsenio Dominguez said several vessels had already been successfully evacuated, but the organization needed to confirm that the required safety guarantees were still in place before proceeding.

“I have always reiterated that the safety of the seafarers remains paramount,” Dominguez said, adding that the evacuation plan would remain paused “until further clarity is obtained.”

The decision comes at a delicate moment for international shipping. The IMO launched the evacuation plan earlier this week, working with member states and industry after months of disruption around the Strait of Hormuz, one of the world’s most important energy and trade corridors.

The framework was designed to allow vessels to leave the Persian Gulf in a controlled, sequenced manner rather than create congestion in a narrow and heavily militarized passage. According to the IMO, roughly 11,000 seafarers were expected to be evacuated under the plan.

Reuters reported that by Wednesday morning, around 57 ships carrying about 1,100 seafarers had already used the routes before the pause was announced.

Attack In Gulf Of Oman Changes The Calculation

The latest incident followed reports from the UK Maritime Trade Operations agency that a vessel had been struck by an unknown projectile off the coast of Oman, damaging the bridge.

No casualties or pollution were reported. AP later cited a U.S. official as saying the ship had been hit by an Iranian drone, although the IMO neither identified the vessel nor attributed responsibility for the attack.

Iran has challenged routes developed without its full approval, maintaining that safe passage through the Strait of Hormuz should take place only through sea lanes recognised by Tehran. Authorities have also instructed vessels to remain in contact with naval forces through international maritime communication channels.

Why Cyprus Has A Direct Stake

Developments in the region are particularly relevant for Cyprus, one of Europe’s largest shipmanagement centres. According to the Shipping Deputy Ministry, 19 Cyprus-flagged vessels were operating in the Arabian Gulf earlier this week, with all ships and crews reported safe. Most operate permanently in the region, primarily providing specialised or auxiliary maritime services.

The Shipping Deputy Ministry has promoted Cyprus as the largest third-party shipmanagement centre in Europe and one of the three largest globally, with companies based on the island managing more than one-fifth of the world’s third-party fleet.

Greece Faces Even Greater Exposure

Greece also has significant exposure to developments in the region. The Union of Greek Shipowners says the country controls nearly 5,800 vessels, representing more than 19% of global tonnage and 61% of the European Union-controlled merchant fleet.

Earlier in the crisis, Greece’s shipping ministry advised Greek-flagged vessels to avoid the Persian Gulf, the Gulf of Oman and the Strait of Hormuz because of heightened navigation risks. Reuters also reported in March that at least 10 Greek-flagged ships were operating inside the Gulf, with five more just outside it, while more than 325 Greek-owned or Greek-managed vessels were present across the wider region.

Greek Shipping Minister Vassilis Kikilias described the situation as “alarming and worrying”, calling for commercial shipping to remain outside armed conflicts.

A Cautionary Pause, Not A Failure

Dominguez said the decision to pause the evacuation reflects the need to ensure the safety of seafarers before the operation resumes.

Coinciding with the Day of the Seafarer, held this year under the theme “Carrying world trade. Carrying the risks.”, the announcement also highlighted the importance of protecting thousands of seafarers in the Persian Gulf. Dominguez said they must not become victims of the ongoing geopolitical tensions.

Cyprus recorded a marginal improvement in economic sentiment in June 2026, according to the latest Economic Sentiment Surveys, with the Economic Sentiment Indicator (ESI) rising by 0.2 points from May.

The surveys, conducted monthly by the University of Cyprus Economic Research Centre in collaboration with RAI Consultants, track how businesses and households view current conditions and their expectations for the months ahead.

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Retail, Construction And Consumers Lift The Index

The increase in the ESI was driven by stronger confidence in retail trade, construction and among consumers, offsetting weaker sentiment in the services sector. Despite the modest gain, the index remained above its long-term average of 100 points.

Sector Performance Remains Uneven

Retail and construction recorded improved sentiment, reflecting more positive assessments of current conditions and stronger expectations for the coming quarter. By contrast, confidence in services weakened as businesses reported less favourable assessments of current activity and lower expectations for turnover.

Manufacturing sentiment remained broadly unchanged, with weaker production expectations offset by an improvement in assessments of finished goods inventories.

Consumer Confidence Strengthens For A Second Month

Consumer confidence improved for a second consecutive month, supported by more optimistic expectations for household finances and the wider economy. At the same time, households reported a less favourable assessment of their recent financial situation.

Uncertainty Rises, But Inflation Expectations Stay Elevated

The Economic Uncertainty Indicator increased in June, although it remained below the levels recorded in March and April. The rise was driven mainly by services, construction and households.

Price expectations also remained elevated, indicating that inflationary pressures persist, albeit at a more moderate pace.

Cyprus’ petroleum market weakened in May 2026 despite a month-on-month recovery in fuel demand, while the government moved to extend reduced fuel duties to ease pressure on motorists.

Annual Sales Decline Despite Monthly Rebound

Total sales of petroleum products fell 5.1% year on year to 127,538 tonnes, according to figures released on Friday by the Cyprus Statistical Service (Cystat), reflecting weaker demand across most fuel categories.

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The sharpest annual declines were recorded in kerosene, down 23.6%, followed by asphalt (-20.8%), heavy fuel oil (-18.2%) and marine gasoil provisions (-13.3%). Heating gasoil fell 11.5%, aviation kerosene provisions declined 7.5%, road diesel dropped 4.1%, and motor gasoline edged down 0.3%. Light fuel oil was the only category to record growth, rising 19%.

Sales through filling stations also declined, slipping 2.6% to 56,867 tonnes.

Transport Fuels Drive Month-On-Month Recovery

Compared with April, however, petroleum sales increased 7.7%, supported by stronger demand for transport fuels.

Aviation kerosene provisions rose 13.2%, road diesel sales increased 8.8%, and motor gasoline climbed 8.3%. Marine gasoil provisions, by contrast, fell 8.9% from the previous month. Petroleum stocks at the end of May were 7.1% higher than a month earlier.

Despite the weaker annual performance in May, total petroleum sales for the first five months of 2026 remained 3.4% above the same period last year.

Government Extends Fuel Tax Relief

The figures come amid continued volatility in global energy markets and renewed efforts by the Cypriot government to offset the impact on consumers.

On Thursday, the House of Representatives unanimously approved a two-month extension of reduced fuel excise duties under an emergency procedure, keeping the measure in force until August 31, 2026. The extension preserves cuts of 8.33 cents per litre on petrol and six cents per litre on diesel. The government estimates the additional cost at about €12 million. The reduced duties had been due to expire at the end of June.

Officials said the extension was still necessary because energy prices remain above normal levels despite easing from earlier highs. “Prices are still at higher levels than normal, due to geopolitical developments,” government spokesman Konstantinos Letymbiotis said.

The measure was first introduced in March as part of a broader package of cost-of-living support.

Fuel Prices Still Higher Than A Year Ago

Separate Eurostat data published earlier this month showed that fuel prices in Cyprus remained 20.5% higher in May than a year earlier, broadly in line with the EU average increase of 20.7%.

Monthly price movements were mixed. Diesel prices fell 1.5% between April and May, while petrol prices increased 2.1%. Although overall inflation eased to 2.6% in May, fuel continued to contribute to consumer price pressures.

Geopolitics Keeps Oil Markets On Edge

International oil markets remain sensitive to developments in the Middle East. A recent agreement between Iran and the United States initially pushed prices lower, but uncertainty has persisted following signs of instability in the ceasefire and Iran’s renewed closure of the Strait of Hormuz over alleged violations.

Savvas Prokopiou, chairman of the Petrol Station Owners’ Association, said international oil prices had stabilised at around $78 to $80 per barrel and expressed support for extending the reduced excise duties. He said he expects further reductions in fuel prices in the coming days and argued that maintaining the measure would help motorists avoid a sudden increase of more than eight cents per litre once the temporary tax relief expires.

Strong interest in career opportunities in Cyprus and the incentives available to professionals considering a return was evident at two Minds in Cyprus events held in Birmingham and London, bringing together more than 350 Cypriot professionals working in the United Kingdom.

Held on June 22 in Birmingham and June 23 in London, the events featured 24 companies and organisations from Cyprus, showcasing more than 110 highly skilled job opportunities across key sectors of the economy.

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A Direct Link Between Cyprus And Its Global Talent Base

The initiative returned to the United Kingdom one year after its launch in London by President Nikos Christodoulides. Representing the government, Deputy Minister to the President Irene Piki outlined the programme’s progress over the past year, the incentives now available and the career opportunities emerging in Cyprus.

Designed to connect Cypriots living abroad with businesses and organisations operating on the island, the initiative attracted participants from fast-growing sectors including technology, fintech, financial and professional services, research, innovation and energy.

Showcase In London, Roundtable In Birmingham

The London event took the form of a career opportunities exhibition, while Birmingham hosted an open roundtable discussion on Cyprus’ economic prospects, labour market needs and efforts to strengthen ties with the Cypriot diaspora.

Piki said Minds in Cyprus is a coordinated initiative designed to position Cyprus as a credible option for professionals planning their next career move. The objective, she added, is not only to encourage Cypriots to return, but also to create the conditions that make returning to, or working with, Cyprus a realistic professional choice.

Economic Momentum Is Reframing The Case For Return

Referring to Cyprus’ economic performance, Piki pointed to strong growth, historically low unemployment, declining public debt and successive upgrades by international credit rating agencies. She said these developments are increasing demand for specialised talent, particularly in high value-added sectors.

Particular emphasis was also placed on the Opportunities for Talent platform, which already has more than 700 registered professionals and features over 330 specialised vacancies from companies and organisations in Cyprus.

Tax Relief And Practical Support Are Central To The Offer

Targeted tax incentives for professionals considering a return were also presented. These include a new 25% tax exemption on employment income for Cypriots who have lived abroad for seven years, alongside the existing 50% tax exemption available in specific cases. Officials said the measures are intended to reduce costs and uncertainty during the first years after relocation.

Alongside the tax incentives, the government presented practical support measures under the Minds in Cyprus action plan, including faster recognition of professional qualifications and licences, assistance with residence and work permits for spouses or partners, support for families relocating to Cyprus, and access to centralised information through the Information Hub.

Representatives from the Tax Department and the Research and Innovation Foundation also briefed participants on tax matters, funding programmes, research opportunities and innovation support tools.

Beyond Return: Keeping Cyprus Connected To Its Diaspora

Piki said the initiative is intended not only for those considering a return to Cyprus, but also for professionals who wish to remain connected to the country by collaborating with Cypriot businesses, sharing expertise or contributing to projects being developed on the island.

“Minds in Cyprus does not simply ask for a return,” she said. “It creates the conditions for the idea of returning or collaborating to become a real option.”

The events were organised by the government and Invest Cyprus, with the support of the Cyprus Chamber of Commerce and Industry, Cypriots in the City, and companies and organisations operating in Cyprus.

More broadly, the initiative forms part of the government’s strategy to attract and deploy talent, strengthen the competitiveness of the Cypriot economy and leverage the international experience of Cypriots living and working abroad.

The Cypriot banking sector remains in a strong position, supported by solid capital buffers and overall financial stability, according to speakers at the annual general meeting of the Association of Cyprus Banks. At the same time, government officials and regulators stressed that maintaining this position will require continued discipline and long-term planning.

A Strong Sector, But Not A Complacent One

Finance Minister Makis Keravnos used the meeting to highlight concerns over draft laws recently passed by parliament, which, according to the Ministry of Finance, the Central Bank and the Legal Service, may contain constitutional, legal and institutional issues. Those concerns, he noted, led to presidential referrals and remittals to the Supreme Court.

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Keravnos also said the European Central Bank had been consulted on proposed measures concerning the suspension of foreclosures and the restructuring of loans and guarantees, adding that the ECB had expressed its own concerns.

Profitability Should Reflect Real Economy Lending

While acknowledging that the banking sector remains highly profitable, Keravnos said earnings are expected to reach around €1 billion in 2025, lower than in 2024 as interest-rate conditions gradually normalize.

He said he would prefer bank profitability to rely more on lending to businesses operating in productive sectors and less on the widening of European Central Bank interest-rate spreads.

According to the minister, Cyprus’ return to investment-grade status after 11 years has strengthened the country’s appeal to foreign investors, technology companies and startups. He said this should encourage banks to offer financing that better supports businesses while improving the diversification of their loan portfolios.

The Central Bank’s Warning: Strength Today Is Not A Guarantee Tomorrow

Central Bank Governor Christodoulos Patsalides also warned against complacency, saying the sector’s current strength should not be taken for granted.

“The Cypriot banking sector is strong today. But strength that truly matters is not exhausted by a capital ratio, a profit line or a favorable cycle,” he said.

Patsalides added that lasting resilience depends on institutions remaining strong as conditions change, risks become more complex, and competition evolves. In his view, that requires sufficient capital buffers, adaptable infrastructure and management teams prepared for changing market conditions.

Long-Term Resilience Over Short-Term Gains

Patsalides also stressed that banks should focus on long-term resilience rather than short-term performance. Decisions on dividend policy, capital allocation and the use of resources, he said, should take into account continued investment in technology, operational resilience, human capital and long-term adaptability.

He added that banks able to remain competitive over time will be those that invest early in strengthening their capacity to adapt and respond to future challenges.

Google has unveiled a dedicated mobile app for Google Finance, bringing watchlists, real-time market data, live financial news and the company’s AI-powered “Key Moments” feature into a single platform.

Google Finance Moves From Web Feature To Standalone Product

The new app is launching on Android first, with an iOS version expected in the coming months. Google says additional capabilities are on the roadmap, including the ability to listen to live earnings calls.

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For users, the pitch is straightforward: a faster, more centralized way to track markets and monitor portfolio activity. For Google, the opportunity is larger. By separating Finance into its own app, the company is making a clearer play for daily engagement in a category long dominated by established platforms such as Yahoo Finance and trading apps like Robinhood.

An AI Layer Designed To Explain Market Movement

One of the app’s key features is Google’s AI-powered “Key Moments” tool, which explains why a stock is moving. Rather than requiring users to piece together headlines and market data themselves, the feature is intended to provide context behind price movements.

Google Finance Web Experience Expands Beyond Beta

Alongside the app launch, Google said its revamped Google Finance web experience, first introduced last year, is now moving out of beta. The updated platform includes new portfolio functionality designed to give users a consolidated view of holdings and performance.

Existing Google Finance portfolios will automatically appear in the new experience. Users can also create new portfolios by uploading files or describing their investments to the chatbot, making setup more accessible for retail investors who manage assets across multiple accounts.

The rollout is global, and it marks a meaningful step in Google’s effort to turn Finance into a more comprehensive destination rather than a standalone market widget.

AI Research And Natural Language Tasks Add Another Layer

The company is also introducing an AI research tool that allows users to ask portfolio-specific questions, such as which sectors are underrepresented in their holdings.

In addition, Google has added a task feature that enables users to create recurring briefings, market summaries and performance updates using natural-language prompts. Once configured, these tasks run automatically in the background.

Google said the new portfolio and task features are available on the web starting today and will arrive on the mobile app in the coming months.

Anthropic’s Claude is increasingly winning over paying consumers, according to transaction data from Indagari, a credit card analytics firm that tracks billions of anonymized transactions across roughly 28 million U.S. consumers.

The takeaway is significant. Claude is no longer best understood as a niche tool for enterprise teams and developers using Claude Code. The data points to a broader, healthier customer base that extends deeper into consumer spending.

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Paying Users Continue To Rise

Indagari’s analysis covers weekly transactions from 2025 through May 10, 2026, including subscriptions and API token purchases. While the dataset does not provide a complete picture of Anthropic’s revenue or total customer base, it offers an indication of broader spending trends.

According to the firm, Anthropic’s paying consumer base and related revenue have increased steadily throughout the year, with this segment growing by around 75% since January 2026.

Growth continued following a surge in March, when Anthropic drew attention after declining to allow its models to be used by the Trump administration for mass surveillance of Americans and autonomous weapons.

Consumer Interest Is Spreading Beyond Transactions

Additional indicators also point to rising consumer interest. DataCamp, an online learning platform with around 20 million users, said Claude has become the most searched term on its platform, surpassing even “AI.”

The company also reported that demand for Claude-related courses among self-directed learners is running three to one ahead of ChatGPT, while interest in those courses has increased 18-fold over the past 30 days.

ChatGPT Still Leads The Market

Despite Claude’s growth, ChatGPT remains the leading consumer AI product.

Recent data from Sensor Tower shows Claude expanding across platforms this year while still trailing ChatGPT by a considerable margin. Indagari’s transaction data reflects a similar pattern, indicating that ChatGPT continues to have significantly more paying users, although its growth has moderated as its user base has expanded.

A Business Story Investors Will Watch Closely

Anthropic’s growth comes as both the company and OpenAI move closer to becoming public companies, with investors expected to focus on customer growth, revenue quality and diversification.

Earlier this month, the U.S. government barred Anthropic from making its cybersecurity-focused models, Mythos 5 and Fable 5, available to non-Americans. The company subsequently withdrew the models from the market.

Available data nevertheless suggests Anthropic continues to expand across both its consumer and business segments.

Prediction market platform Polymarket said hackers stole funds from an unspecified number of users after compromising a third-party vendor and injecting malicious code into the company’s website.

What Polymarket Says Happened

In a post on X on Thursday, Polymarket said the incident affected “some users” and that it has since contained the breach. The company added that it is contacting affected customers and will refund them in full.

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As of Thursday afternoon, however, the full scope of the incident remained unclear. A Polymarket spokesperson confirmed that the breach resulted in the theft of user funds but declined to provide additional details.

Reports Point To Phishing And Crypto Losses

Around the same time as Polymarket’s disclosure, blockchain monitoring firm PeckShield reported on X that a phishing campaign targeting Polymarket users was underway. According to the firm, approximately $3 million in cryptocurrency was stolen.

A blockchain analyst also reported similar losses, claiming the funds had been taken from more than 11 victims. Because Polymarket allows users to deposit cryptocurrency, account security remains a key consideration for its users.

Another Setback For A Company Under Pressure

The security incident comes during a difficult week for the company. On Sunday, an investigation revealed that Polymarket had paid online creators to publish deceptive videos portraying fake betting wins as genuine. In response, the company said it would audit its promotional content.

In recent days, two users also claimed on social media that funds had been stolen from their Polymarket accounts, adding to concerns over the platform’s security and user trust.