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Cyprus Granted Five-Year Extension To Comply With PDO Halloumi Specifications

The European Commission has granted Cyprus a five-year extension to comply with the Protected Designation of Origin (PDO) requirements for Halloumi cheese. This follows the expiration of the initial ten-year transition period requested by the Republic of Cyprus on 9 July. The decision, confirmed by the Minister of Agriculture Maria Panayiotou, aims to secure Halloumi’s status as a premier export product while ensuring sustainability across the sector.

Ensuring Compliance and Sustainability

The extension provides Cyprus with the necessary time to fully align its production processes with PDO standards. The Ministry of Agriculture is set to issue a decree on milk quotas, addressing the balance between sheep-goat and cow’s milk in Halloumi production. This decree, to be finalised after stakeholder consultations, aims to enhance compliance while supporting producers.

Economic and Cultural Impact

Halloumi is a significant agri-food export for Cyprus, representing both an economic asset and a cultural heritage. The PDO status not only ensures product authenticity but also strengthens market positioning globally. Maintaining this status is crucial for Cyprus to protect its market share and promote its national brand.

Strategic Objectives

The Cypriot government’s primary objectives during the transition are the protection and promotion of PDO Halloumi. By implementing measures that support both compliance and industry sustainability, Cyprus aims to solidify Halloumi’s reputation as a high-quality product. The Ministry’s forthcoming decree and ongoing consultations are steps towards achieving these goals.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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