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Cyprus Elevates Tourism Quality Ahead Of EU Council Presidency

by THEFUTURE.TEAM

Tourism Resilience And Recovery

Cyprus is poised to fortify the quality of its tourism offerings as it enters a pivotal phase of development. Deputy Minister of Tourism Kostas Koumis emphasized the nation’s robust recovery and remarkable growth during a gathering of the Association of Travel And Tourism Agents Of Cyprus (Actta) in Nicosia. He noted that the past three years have not only seen the industry rebound from pandemic setbacks but, in many instances, surpass pre-pandemic performance metrics.

Strategic Investments And Evolving Priorities

The Deputy Minister outlined several key initiatives driving this transition. Enhanced air connectivity across European markets, rising hotel overnight stays well above the EU average, and significant gains in tourism revenue underscore this upward trend. However, Koumis stressed that the government’s strategy is evolving—tourism success must now be measured by the depth and quality of the experiences offered rather than mere visitor numbers or revenue figures.

Embracing Sustainability And Authenticity

According to Koumis, addressing seasonality, prioritizing digital upgrades, environmental sustainability, and robust local community support are crucial. These measures align with the EU’s Tourism Agenda 2030, which champions long-term sustainability and community enrichment. The Deputy Ministry has already allocated over €20 million through the Recovery And Resilience Facility (RRF) to upgrade rural and remote areas, enhance local accommodations, and foster authentic visitor experiences.

Preparing For A Modern Tourism Model

Recent initiatives—including a draft law on diving tourism, the launch of a national tourism app, a comprehensive study on medical tourism, and a project documenting Cyprus’ rich tourism history—demonstrate a strategic pivot toward strengthening the island’s unique destination attributes. As 2024 and 2025 set new benchmarks in visitor arrivals and revenue, industry leaders are now called upon to envision the next decade collectively. Koumis underscored the influential role of tour operators in promoting lesser-known regions and expanding authentic tourism products.

A Vision For Broader Prosperity

The overarching challenge remains ensuring that progress in tourism generates broad societal benefits. The commitment to cultivating a modern tourism model—one that enriches visitors with the genuine flavor of Cyprus while providing tangible advantages to local communities—illustrates a forward-looking strategy. As the nation prepares to assume the EU Council Presidency in 2026, Cyprus is set to redefine its tourism paradigm, building not only on performance metrics but on the intrinsic value of unique and sustainable experiences.

Cyprus Cuts Electricity VAT To 5% As Part Of 100 Fiscal Measures

by THEFUTURE.TEAM

President Nikos Christodoulidis announced a package of 100 fiscal measures to address inflation and reduce costs for households and businesses. Measures include tax cuts and targeted support. Plan focuses on energy prices, fuel costs and consumer spending. Implementation begins in 2026.

Broad-Based Tax Cuts And Immediate Relief

Among the suite of initiatives is a reduction in fuel tax, widely recognized as an effective short-term relief strategy. However, an even more significant policy step involves transferring savings directly to consumers via improved fiscal mechanisms. This approach ensures that the benefits of tax reductions are channelled efficiently to end users, reinforcing trust and stability in the market.

Strategic VAT Reduction On Electricity

VAT on electricity will be reduced to 5% from May 1, 2026, to March 31, 2027. The rate was previously lowered from 19% to 9%. Electricity pricing remains regulated by the Public Electricity Company. Structure limits the impact of market-driven price increases.

Ensuring Market Stability And Consumer Protection

Alongside tax cuts, the government is monitoring potential increases in consumer costs, including fuel and products that may be considered for zero VAT. President Nikos Christodoulidis said market oversight will be strengthened, with measures aimed at preventing unjustified price increases.

Electricity price is about 26 cents per kilowatt-hour, down 14% compared to the same period in 2025. According to the Public Electricity Company, price increases in the coming months are expected to remain below 5%. Measures are designed to limit inflation pressures and support household costs. Impact will depend on market conditions and implementation.

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