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Cyprus Presidency 2026 Paves The Way For Strategic Tourism And Hospitality Boost

Strategic Opportunity For The Hospitality Sector

The upcoming Cyprus Presidency of the Council of the European Union, scheduled for the first half of 2026, is set to deliver significant benefits to the nation’s hotel and tourism industry. Deputy Minister for European Affairs Marilena Raouna emphasized that local hoteliers will serve as the linchpin in this endeavor, utilizing their professionalism and service excellence to elevate Cyprus’s international reputation in tourism.

A Platform For International Recognition

Speaking with Entrepreneurial Limassol, a periodical of the Limassol Chamber of Commerce (Evel), Raouna outlined that the Presidency is not just a test of Cyprus’s hospitality but a strategic opportunity for global exposure. With over 250 meetings scheduled—from ministerial councils to informal gatherings of EU Heads of State and Government—and more than 20,000 delegates from the 27 member states expected, this event offers a rare chance for Cyprus to demonstrate its stability, security, and commitment to excellence.

Leveraging Infrastructure And Local Expertise

Efforts are already under way to ensure that the entire nation benefits. The Deputy Ministry of Tourism is collaborating with the Presidency Secretariat to launch tenders for hotels and venues across various provinces, thereby engaging hoteliers in a competition that spans the entire island. This initiative not only enhances infrastructure across different regions but also supports local businesses and the broader food industry, thereby delivering a multiplier effect across the economy.

A New Era In European Tourism Policy

This significant event coincides with the upcoming presentation of the European Commission’s new EU Tourism Strategy in early 2026. The introduction of a dedicated European Commissioner for tourism marks a historical milestone and sets the stage for a highly competitive, sustainable, and inclusive tourism model within Europe. Cyprus intends to leverage this momentum to enrich its national tourism agenda and contribute meaningfully to shaping future EU policies.

Collaborative Dynamics For A National Mission

Beyond the formal meetings, a series of curated excursions will promote the cultural heritage and natural beauty of all provinces, ensuring that the benefits of the Presidency extend well beyond Nicosia. The collaboration between the government and key industry players such as the Cyprus Hotel Association has been described as both productive and essential. As Deputy Minister Raouna aptly noted, the success of the Cyprus Presidency will not only reflect the strength of Cyprus’s tourism sector but will also encapsulate the collective ambition of the nation.

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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