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Cyprus Poised For Year-Round Tourism Success Amid Summer Peak

Cyprus is set to redefine its tourism landscape, building on a stellar summer record while preparing an ambitious expansion of its winter offerings. Deputy Minister of Tourism Costas Koumis outlined a strategy aimed at capturing a larger share of the winter market during discussions at the 45th annual World Travel Market (WTM) 2025 in London, an event renowned for convening over 40,000 industry professionals from more than 180 countries.

Capitalizing On Summer Strength And Winter Opportunities

Koumis confidently noted that the island’s summer performance has reached unprecedented heights, forecasting its continuation into 2026. He emphasized that while the summer season has peaked, the pressing challenge now is to boost the winter tourism segment. The deputy minister cited a 5.2% increase in tourist arrivals from the British market between January and September 2025 compared to the previous year as a testament to Cyprus’ growing appeal.

Strategic Alliances And Expanded Winter Programs

Conversations with strategic tourism partners at the WTM revealed an optimistic outlook for winter programmes. Major British tour operators are expected to enhance their winter offerings significantly, a move that could transform Cyprus into a year-round destination. Koumis stressed that expanding winter initiatives is essential for maintaining revenue momentum, even as summer operations reach saturation.

Shifting Investment Models And Infrastructure Innovation

WTM 2025 featured over 70 sessions and panel discussions, during which industry leaders discussed topics ranging from artificial intelligence to sustainable infrastructures. Koumis contributed to several panels including one on rethinking investment models in tourism, while also engaging in bilateral discussions with officials such as Serbian Tourism Minister Husein Memic on future cooperation.

Robust Data And Future Growth Prospects

The latest statistics fortify Cyprus’ growth narrative: between January and September 2025, tourist arrivals surged by 10.3% year-on-year to 3.6 million, with tourism revenue climbing to €1.89 billion in the first seven months. Additionally, Cyprus recorded the highest increase in hotel overnight stays in Europe, and the revenue percentage among European Mediterranean destinations remains unmatched.

Building A Sustainable Year-Round Model

Industry experts, including Christos Angelides, Director General of the Cyprus Hoteliers Association, underscored the importance of an integrated ecosystem where hotels, local businesses, and communities collaborate to extend tourism beyond the summer months. Plans are already underway for several hotels in Ayia Napa, Protaras, and the Famagusta district to extend operations into November 2025, ensuring a prolonged engagement with visitors.

Diversification And Future Vision

Further bolstering its strategy, the Deputy Ministry of Tourism is diversifying the island’s tourism product by promoting sports, wellness, gastronomy, and conference tourism. These efforts aim to reduce the historical dependency on the sun-and-sea model, positioning Cyprus as a destination that offers authentic and sustainable experiences all year round.

As Cyprus prepares to extend its tourism window, the focus on winter growth and sustainable practices marks a pivotal shift in the island’s economic strategy, promising robust returns and enduring success in the competitive global landscape.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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