Cyprus Service Sector Turnover Rises In 2025, Led By Tourism Growth

Cyprus Service Sector Expands In 2025

Cyprus’s service sector recorded strong turnover growth in 2025, driven largely by tourism-related industries and expanding professional services, according to data released by the national statistical service. The figures highlight the continued importance of services as the backbone of the Cypriot economy.

Tourism And Hospitality Lead Growth

Accommodation and food services recorded the strongest increase, with turnover rising by 9.5% compared with 2024. The result reflects sustained tourism demand and continued growth across hospitality businesses. Administrative and support services followed with an increase of 7.4%, reflecting rising activity in business support sectors.

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Broad Gains Across Service Industries

Several additional sectors also reported steady growth during the year. Professional, scientific and technical activities expanded by 4.6%, while the communications sector recorded growth of 4.3%. Transport and storage increased by 2.8%, supported by higher logistics and tourism-related demand. Real estate management registered a smaller rise of 0.4%.

Fourth Quarter Maintains Momentum

The fourth quarter of 2025 reaffirmed the overall positive annual trend. Detailed quarterly analysis revealed a continued strong performance in key segments:

Accommodation and food services increased by 9.5%
Real estate management grew by 5.7%
Administrative and support activities advanced by 4.1%
Professional, scientific, and technical activities rose by 3.4%
Communications improved by 2.1%
Transport and storage saw a 1.4% increase

Service Economy Remains Key Growth Driver

Recent data underscores the resilience of Cyprus’s service-driven economic model. Strong tourism performance continues to support related industries such as transport, logistics and professional services, reinforcing the sector’s role as a central pillar of the country’s economic growth.

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Cyprus Introduces €200 Million Support Measures To Cut Energy And Food Costs

by THEFUTURE.TEAM

March 27, 2026

Comprehensive Relief Measures For A Resilient Economy

The government of Cyprus introduced support measures exceeding €200 million to reduce household expenses and support key sectors. The package targets energy costs, food prices, tourism and agriculture. Measures come in response to rising costs and supply pressures. Implementation begins in April and May 2026.

Energy And Fiscal Reforms

The government will reduce VAT on electricity for households to 5% from May 1, 2026, to March 31, 2027. The measure is expected to lower energy bills. Special consumption tax on transport fuels will decrease by 8.33 cents per liter between April and June 2026. Policy targets fuel-related costs.

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Broadening The Zero VAT Initiative

Authorities will expand the list of products with zero VAT. Meat, poultry and fish will be included from April 1 to September 30, 2026. Existing zero-VAT categories already include fruits and vegetables. The government also decided not to introduce a green tax on fuels, avoiding an additional cost of about 9 cents per liter.

Sector-Specific Supports

The package includes a 30% wage subsidy for hotel employees for April 2026. Measure supports tourism businesses during the early season. Support for airlines aims to maintain connectivity with key destinations. The agriculture sector will receive subsidies covering 15% of costs for fertilizers and supplies in April and May.

Economic Stability, National Security

President Nikos Christodoulidis said economic stability remains a priority for the government. He noted that growth, fiscal balance and inflation trends support current policy decisions. Statement links economic policy with broader national priorities. The government continues to monitor external risks.

Ensuring Consumer Protection

Furthermore, the government has mandated rigorous market oversight and intensified inspections to prevent exploitative pricing during this period of economic intervention. This proactive stance ensures that the benefits of the measures directly serve the citizens without unintended inflationary impacts.

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