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Cyprus Welcomes Over 1.6 Million Tourists In H1 2024

In a testament to Cyprus’s enduring appeal, the island nation welcomed over 1.65 million tourists in the first half of 2024, marking a 2.4% increase from the same period in 2023. This growth, driven by significant influxes in June, highlights the resilience and attractiveness of Cyprus as a premier travel destination.

According to data from CySTAT, June 2024 saw 482,261 tourist arrivals, up 5.5% from June 2023. The United Kingdom remained the largest source market, contributing 35.6% of the total arrivals. Israel followed, showing a notable rise to 10.7%, while Poland, Sweden, and Germany also featured prominently. This diversity in tourist origins underscores Cyprus’s broad international appeal and strategic marketing efforts.

Interestingly, the majority of these visitors, 83.4%, cited holidays as their primary purpose, reflecting the island’s reputation for leisure and recreation. Meanwhile, 10.5% visited friends or relatives, and 5.9% travelled for business, suggesting a balanced mix of travel motivations that contribute to the local economy.

The slight decline in Cypriot residents travelling abroad, down by 1.3% compared to the previous year, further indicates a domestic preference for local tourism or a shift in travel patterns.

This surge in tourist arrivals is a promising sign for Cyprus’s economy, providing a significant boost to various sectors including hospitality, retail, and transportation. As Cyprus continues to attract a growing number of international visitors, the tourism industry is poised for a robust recovery and sustained growth in the coming years.

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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