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Cyprus Tourism Sector Continues To Thrive On Foreign Demand Amid EU Overnight Stay Growth

by THEFUTURE.TEAM

September 25, 2025

Overview Of EU Tourism Trends

Recent Eurostat data released on the occasion of World Tourism Day, September 27, 2025, underscore a steady increase in overnight stays across the European Union. Total stays rose to 1.279 billion between January and June, marking a 2.3 percent increase from the previous year’s 1.249 billion. This growth reflects a broad-based recovery in tourism with recent gains driven predominantly by international travelers.

Country-Specific Performance And Strategic Shifts

Within the EU, several countries have demonstrated noteworthy growth. Malta, Latvia, and Poland led the charge with increases of 12.7 percent, 8.6 percent, and 8.5 percent respectively. Conversely, Ireland experienced a downturn with a 3.5 percent decline. Marginal gains were reported in Germany (0.2 percent), Sweden (0.5 percent), and Belgium (0.9 percent), suggesting a mixed recovery landscape that may necessitate targeted strategic initiatives.

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Cyprus: A Hub For International Visitors

Cyprus recorded a rise of 3.7 percent in overnight stays; however, the nation’s tourism sector remains distinctly reliant on foreign visitors, who constituted 93.1 percent of total stays—the second highest share in the EU after Malta (93.6 percent). This prominent reliance underscores Cyprus’ positioning as a preferred destination for international tourists. In contrast to the overall positive trend, domestic stays in Cyprus experienced a slight decline of 1.1 percent, while foreign stays grew by 4 percent.

Comparative Analysis Across The EU

When examining overnight stays by foreign visitors across the Union, the data reveals that international arrivals surged by 3.1 percent, outpacing domestic travel which grew by 1.7 percent. Notably, Malta, Latvia, and Finland recorded the strongest increases in foreign overnight stays with gains of 13 percent, 12.8 percent, and 12.3 percent respectively. However, declines were observed in Ireland, Sweden, and Germany, with drops of 6.1 percent, 5.3 percent, and 2.9 percent accordingly.

Concluding Insights

The findings provide a clear mandate for policymakers and industry stakeholders to continue fostering an environment supportive of international tourism. Cyprus, with its heavy dependence on foreign visitors, along with other EU economies, may need to diversify or reinforce its tourism strategies to sustain growth in the competitive global market.

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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.