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Cyprus Tourism Sector Sets Record in 2025, Fueling Economic Growth

by THEFUTURE.TEAM

February 27, 2026

Record Contribution To GDP

Cyprus’ tourism sector increased its contribution to national GDP to 14% in 2025, up from 13.1% a year earlier, according to official figures. Deputy Tourism Minister Kostas Koumis said the industry continued to play a central role in supporting overall economic growth.

Surging Tourist Arrivals And Revenue

The annual report reveals that tourist arrivals surpassed 4.5 million for the first time, marking a 12.2% year-on-year increase and a 41.6% jump over three years. Simultaneously, revenues saw a sharp rise, climbing 15.3% year-on-year and 51.1% over the three-year span to reach an impressive €9.9 billion. Enhanced visitor spending was also evident with average per visitor expenditure increasing to €822 and daily spending up 7.2% to €99.5.

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Strength Amid Global Challenges

The average length of stay declined by about 4% to 8.27 days. Despite shorter visits, overall performance remained strong, supported by higher visitor numbers and spending. Projections indicate that overnight stays could reach 18.5 million, up 3.3% from 2024. Officials say tourism performance helped support estimated economic growth of 3.75% in 2025, above the eurozone average.

Strategic Investments And Future Outlook

Authorities launched 13 incentive schemes in 2025, including four supported through the Recovery and Resilience Plan, mobilizing close to €20 million in investment. Funding focused on upgrading accommodation facilities, restaurants, and traditional retail businesses, while also supporting projects in rural and coastal areas. Additional initiatives targeted health and wellness tourism, diving certification, and digital transition projects aimed at improving competitiveness.

Preparing For A Strategic 2026

Looking ahead, Cyprus expects tourism-related activity to increase further during its Presidency of the Council of the European Union in 2026. Officials estimate that more than 30,000 conference participants will visit the country as part of approximately 250 scheduled events. New legislative proposals related to diving tourism and hospitality operations are also under preparation, alongside cooperation agreements with Israel and Saudi Arabia aimed at strengthening long-term tourism partnerships.

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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.