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Cyprus Tourism Sees Remarkable Surge: A 20.1% Increase In 2023

In a significant milestone for the Cypriot tourism industry, the island nation witnessed an impressive uptick in tourist arrivals, reaching a staggering 3.85 million in 2023. This 20.1% year-on-year increase, as reported by the Cyprus Business News, highlights the resilience and growth potential of Cyprus’s tourism sector amid a global economic landscape marked by uncertainty and recovery.

The tourism sector, a cornerstone of the Cypriot economy, demonstrated remarkable recovery dynamics post-pandemic. The strategic initiatives by the government, aimed at revitalising and promoting Cyprus as a premier tourist destination, have borne fruit. Enhanced marketing campaigns, infrastructure developments, and improved service quality have collectively contributed to this significant surge in tourist numbers.

One of the pivotal factors driving this growth has been the diversification of the tourism market. Traditionally reliant on visitors from the United Kingdom and Russia, Cyprus has successfully expanded its reach to other European nations and beyond. The influx of tourists from Germany, Israel, and Scandinavian countries has provided a more balanced and sustainable tourism influx, mitigating the risks associated with over-dependence on a limited number of markets.

Moreover, Cyprus’s unique blend of historical heritage, natural beauty, and modern amenities continues to captivate international travellers. From the ancient ruins of Kourion and the medieval castles of Limassol to the pristine beaches of Ayia Napa and the vibrant nightlife of Nicosia, Cyprus offers a diverse array of attractions that cater to a broad spectrum of tourist preferences.

The positive trends observed in 2023 are not merely quantitative but also qualitative. Higher tourist arrivals have been accompanied by increased average expenditure per tourist, contributing to greater economic benefits. The focus on high-value tourism segments, such as luxury travel, wellness tourism, and eco-tourism, has attracted a more affluent demographic, further bolstering the economic impact of the tourism sector.

The Cypriot government remains committed to sustaining this growth trajectory in light of these developments. Initiatives such as the National Tourism Strategy 2030 underscore the government’s long-term vision for the sector. This comprehensive strategy aims to enhance the tourism infrastructure, improve service standards, and foster sustainable tourism practices, ensuring that the growth in tourist arrivals translates into lasting economic prosperity and social benefits.

However, the path forward is not without challenges. The global tourism landscape is highly competitive, and Cyprus must continuously innovate to maintain its competitive edge. Issues such as environmental sustainability, seasonality, and geopolitical tensions necessitate proactive measures and strategic foresight.

Interest rates on housing loans up and down on deposits

Cypriot banks raised mortgage rates in August while cutting interest on one-year deposits for households, according to data released by the Central Bank of Cyprus (CBC).

Meanwhile, the total value of new loans dropped sharply in August, falling by 33 per cent compared to July.

The latest figures, published on Wednesday reveal that the interest rate for short-term deposits by households fell to 1.79 per cent, from 1.96 per cent in July. In contrast, the deposit rate for businesses (non-financial companies) travelled in the opposite direction up to 2.33 per cent in August from 2.28 per cent in the previous month.

Consumer loan rates also saw a small decline, dropping to 6.59 per cent from 6.67 per cent in the previous month. Mortgage rates rose marginally to 4.65 per cent, from 4.59 per cent.

Rates for businesses, on loans €1 million also fell to 5.36 per cent from 5.61 per cent. For loans

above €1 million the rate fell to 5.42 per cent from 5.64 per cent.

In terms of new loans, there was a marked drop across the board. Total new loans fell to €395.5 million, down from €596.3 million in July.

Consumer loans also fell with net new loans at €19m, compared to July’s €28m (€26.1m net).

Loans for house purchases also declined significantly, falling to €95.6m, of which €72.3m were net new loans, down from €134.3m (€100.7m net) in July.

New loans of under a million euro to businesses decreased to €52.8m (€34.1m net), down from €75.5m in July (€49.5m net).

Similarly, loans of over a million euros were halved to €179.3m (€78.3m net), compared to €345.2m (€211.8m net) in the previous month.

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