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Cyprus Introduces Tourism Strategy 2035 To Drive Sustainable Digital Growth

Strategic Vision Aligned With Economic Growth

Cyprus has officially adopted a forward-looking National Tourism Strategy extending to 2035, setting an ambitious goal of welcoming five million visitors. Deputy Tourism Minister Kostas Koumis announced the initiative following a recent cabinet meeting, emphasizing significant quality upgrades and the strict observance of sustainable development principles. This expanded plan builds upon the 2030 strategy and is firmly aligned with the island nation’s broader economic ambitions.

Enhancing The Tourism Product For A Sustainable Future

The revised strategy outlines clear objectives: enhancing the tourism product, supporting sustainable growth, transforming Cyprus into a digitally smart destination, and reducing seasonality through year-round visitor distribution. Key investments will focus on the green transition, digital innovation, and essential infrastructure improvements, particularly in accessibility, to build a more resilient tourism ecosystem.

Immediate Implementation And Market Diversification

Deputy Minister Koumis confirmed that action plans are being fast-tracked. The strategy seeks not only higher arrival numbers but also a more even distribution of visitors across regions and seasons, reflecting a more balanced approach to tourism growth. In recent years, Cyprus has diversified its source markets and now attracts tourists from more than 40 countries through direct air links, while also strengthening its presence in emerging markets such as Kazakhstan.

Expanding Global Connections And Future Markets

Although direct air connectivity has broadened across many regions, significant potential remains in markets such as the United States, China, and India. Current efforts are focused on cultivating demand in these high-potential destinations before introducing direct flight routes, demonstrating a proactive expansion strategy.

Investing In Sustainability And Digital Innovation

Sustainability and technology remain central to the strategy. The deputy ministry is collaborating with the Technological University on the development of a national digital tourism guide application. Future action plans will include dedicated funding and active private-sector participation, positioning Cyprus as a leader in green and digital tourism transformation.

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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