Cyprus Secures Second Place In European Air Connectivity Rankings As Tourism Soars

by THEFUTURE.TEAM

October 1, 2025

European Air Connectivity On The Rise

Cyprus has emerged as a formidable player in regional aviation, ranking second in Europe for improving air connectivity between 2019 and 2025, according to a detailed report by the Aviation Council International. Deputy Minister of Tourism Kostas Koumis emphasized this achievement during a high-profile event marking World Tourism Day at Larnaca Medieval Castle. This recognition underscores the nation’s robust efforts to enhance its transportation infrastructure, a critical factor in sustaining and expanding its visitor base.

Strong Performance In Arrivals And Revenues

As the year draws to a close, industry leaders anticipate a record-setting performance in both tourist arrivals and revenues. Special segments of tourism are contributing promising figures, with off-peak seasons registering significant growth. This trend is seen as pivotal for extending the tourist season and establishing Cyprus as a year-round destination—a goal that has been central to the nation’s tourism strategy under the administration of Nikos Christodoulides.

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Integrating Sustainability With Tourism Transformation

At the event, Koumis spotlighted the World Tourism Organization’s theme, “Tourism And Sustainable Transformation,” reinforcing the imperative for a unified shift towards sustainability. With the Mediterranean experiencing climate change 20 percent faster than many other regions, the urgency for sustainable practices is indisputable. The deputy minister noted that Cyprus, like its regional counterparts, must embrace technologies and practices that not only safeguard the environment but also drive economic efficiency.

A Shared Vision For Year-Round Tourism

The path to sustained success in tourism is built on collaboration among all stakeholders within the ecosystem. Koumis outlined a multi-pronged strategy that includes enhancing destination infrastructure, advancing hospitality facilities in rural and mountainous regions, and investing significantly in knowledge through comprehensive training programmes. The Deputy Ministry is working in close concert with the private and public sectors, emphasizing that an enriched tourism offering—extended beyond conventional services—is essential for long-term viability.

Embracing The Future With Strategic Initiatives

Looking ahead, the ministry is spearheading initiatives to ensure that the tourism sector remains competitive and resilient. Upcoming seminars co-organized with the Deputy Ministry of Research and Innovation are set to explore the roles of sustainability and technological advancements, including the influence of artificial intelligence on the industry. Additionally, a collaborative project with the Cyprus University of Technology aims to document the rich history of Cypriot tourism, linking past successes to future innovation.

Transitioning To A Sustainable Tomorrow

Deputy Minister Koumis concluded with a call for a comprehensive transformation that embraces sustainability as the guiding principle for future tourism. This strategy, anchored in environmental stewardship, technological progress, and robust stakeholder collaboration, is essential for navigating the challenges posed by climate change and evolving market dynamics. The shared vision is clear: by uniting efforts across all facets of the tourism sector, Cyprus is poised to lead the way toward a sustainable and integrated future in tourism.

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Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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