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Cyprus Kicks Off 2025 With A 27% Surge In Tourist Arrivals

Cyprus’ tourism sector is off to a strong start in 2025, with tourist arrivals surging by 27.4% in January compared to the same month last year. The growth signals the success of ongoing efforts to position the island as a year-round destination, particularly during the traditionally quieter winter months.

Key Numbers: A Strong Start To The Year

According to CySTAT, 112,100 tourists arrived in Cyprus in January 2025, up from 87,961 in January 2024. Israel led as the top source market, accounting for 21.1% (23,704 arrivals), followed by:

  • United Kingdom – 16.7% (18,701 arrivals)
  • Poland – 14.1% (15,791 arrivals)
  • Greece – 10.1% (11,288 arrivals)

Shifting Travel Trends

While vacations remained the primary reason for visiting Cyprus, accounting for 56.4% of arrivals, the share of tourists traveling for business increased to 19.0%, up from 17.2% in January 2024. Meanwhile, 24.5% visited friends and family, slightly higher than the previous year.

Winter Tourism On The Rise

The steady increase in arrivals suggests that Cyprus’ strategy to boost winter tourism is gaining traction. With its mild climate, diverse cultural experiences, and targeted promotional campaigns, the island is attracting more visitors beyond the peak summer months—setting a strong precedent for the year ahead.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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