Cyprus has generated a reported €1.57 billion in state revenue from concession agreements covering Larnaca and Paphos airports and Limassol port over the past two decades. The agreements have provided a steady source of public income, while private operators continue to invest in transport infrastructure.
Limassol Port Revenues Continue To Rise
Airport concessions generated more than €1 billion between 2006 and 2025, while Limassol port contributed €574 million from 2016 through July 2026. According to Transport Ministry data submitted to parliament, port revenues reached €44.6 million in the first seven months of 2026, with full-year receipts expected to exceed €80 million.
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State income from the port rose to €81.1 million in 2025, compared with €72.8 million in 2024 and €70.3 million in 2023. In 2017, the first full year under private management, the government received €37.9 million.
Private Operators Invest In Port Infrastructure
Three operators manage different activities at Limassol port under concession agreements signed in April 2016, with the state receiving quarterly payments linked to revenue.
Eurogate Container Terminal Limassol Ltd operates the container terminal, with 62.71% of its revenue allocated to the state. DP World Limassol Ltd manages the general cargo terminal, with a state revenue share of 52.1%, while P&O Maritime Cyprus Ltd provides marine services and pays 10.1% of revenue to the government.
Eurogate had invested more than €36 million in equipment, safety, services and digital upgrades by April 2025. An expansion of the container terminal yard increased capacity to approximately 12,000 twenty-foot equivalent units (TEUs), while concession payments to the Republic totalled €313.91 million between 2017 and 2024.
Further upgrades are under consideration. Plans to introduce shore power for berthed vessels, which would reduce emissions and noise, remain dependent on a national grid connection and European funding.
Airport Expansion To Increase Passenger Capacity
Hermes Airports has operated Larnaca and Paphos airports since May 2006. In December 2024, its concession was extended until late 2032 as part of a settlement resolving longstanding financial disputes with the government. The agreement included €30 million in compensation and a €20 million loan arrangement, alongside the withdrawal of claims exceeding €430 million, including those related to the airport at Tymbou, which is not under the Republic’s control.
The revised agreement also enabled a €170 million airport development programme funded by Hermes. Construction began in March 2025, with Paphos scheduled for completion in April 2027 and Larnaca in September 2027. Once completed, Larnaca’s annual capacity will rise from 7.5 million to 12.4 million passengers, while Paphos will be able to handle 5 million, up from 2.7 million.
Passenger Traffic Remains Above Historical Levels
The two airports handled 10.36 million passengers between January and September 2026, down 2.8% from 10.66 million in the same period of 2025. Larnaca accounted for 7.23 million passengers and Paphos for 3.13 million, amid regional instability and wider travel disruption.
Despite the decline, traffic remains well above historical levels. The airports recorded 13.75 million passengers in 2025, more than double the approximately 6.7 million handled in 2006.
Hermes estimates that the airports’ direct and indirect contribution to the Cypriot economy reached €789.4 million in 2025. The original airport development involved investment exceeding €640 million.
Figures for direct state revenue from the airport concessions differ, however. Hermes said concession-fee payments had exceeded €715 million over 20 years, while Transport Ministry figures for 2006-2025 placed the total above €1 billion.
Overall, the airport and port concessions have become significant sources of public revenue, while private operators continue to expand capacity and modernise infrastructure supporting Cyprus’s transport and tourism sectors.
