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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.

EU Services Production Grows As Information And Communication Lead

Services production continued to expand across the European Union in August 2026, with information and communication recording the strongest annual growth. However, performance varied significantly between industries and member states, while Cyprus reported a mixed picture, with business services expanding and hospitality-related activities declining.

Information And Communication Leads Sector Growth

Compared with August 2025, services production increased by 5.9% in the euro area and 5.8% across the EU in information and communication. Transportation and storage also recorded growth, rising by 2.1% and 1.9%, respectively.

Real estate activities increased by 1.6% in the euro area and 1.1% in the EU. Professional, scientific and technical activities grew by 1% in both areas, while administrative and support services advanced by 1.1% and 1.3%.

Accommodation and food services was the only major sector to record an annual decline, falling by 0.1% in both the euro area and the EU.

The monthly figures were more mixed. Information and communication remained the strongest performer, increasing by 1.2% in the euro area and 1% across the EU. Real estate activities rose by 0.4% and 0.9%, respectively, while transportation and storage edged up 0.1% in the euro area but declined by 0.2% in the EU.

Administrative and support services recorded modest gains of 0.2% in the euro area and 0.1% in the EU. Accommodation and food services fell by 0.3% and 0.4%, while professional, scientific and technical activities declined by 0.8% and 0.9%, respectively.

Slovakia And Greece Record Strongest Annual Growth

Romania recorded the largest monthly increase in services production, at 5.2%, followed by Malta at 1.8% and Portugal at 1.7%. Luxembourg experienced the steepest decline, with output falling by 5.1%, followed by Bulgaria at 2.3% and Denmark at 1.9%.

On an annual basis, Slovakia led with growth of 10%, followed by Greece at 9.3% and Malta at 7.5%. Hungary recorded the weakest performance, with services production declining by 5.6%. Denmark fell by 5.3%, while Italy recorded a smaller decrease of 0.3%.

Cyprus Sees Growth In Business Services But Weakness In Hospitality

Cyprus’ latest figures show a similar divide between expanding business services and weaker hospitality-related activities. According to the Statistical Service of Cyprus (Cystat), professional, scientific and technical activities recorded the strongest annual growth among the covered sectors in the second quarter of 2026, increasing by 3.4%.

Transportation and storage and information and communication both grew by 2.1%, while real estate activities rose by 1.6%. In contrast, accommodation and food services declined by 3.1% year on year, and administrative and support services fell by 2.2%.

First-half results were more favourable for several sectors. Between January and June, professional, scientific and technical activities grew by 3.5%, transportation and storage by 2.8%, real estate by 2.1% and information and communication by 1.3%.

Nevertheless, administrative and support services contracted by 1% over the six-month period, while accommodation and food services declined by 0.7%.

How Cyprus’ Figures Differ From Eurostat’s Data

The Eurostat and Cystat figures measure different aspects of economic activity and are not directly comparable. Eurostat’s services production index tracks changes in the volume of output, whereas Cystat’s Turnover Value Index for Services and Transport measures the value of sales at current prices.

The reporting periods also differ: Eurostat’s figures cover August, while the cited Cypriot data relate to the second quarter and first half of 2026.

Cystat transmits services production data to Eurostat but does not yet publish a separate national production index. Turnover figures therefore remain the main publicly available national indicator for the sector.

Taken together, the data point to continued growth in several of Cyprus’ business-oriented services, alongside persistent pressure on accommodation, food and administrative support activities.

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