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€4.3 Million Urban Mobility Projects Kick Off In Larnaca

Two major sustainable urban mobility projects have been launched in the Larnaca district, with a total budget of €4.3 million (excluding VAT). These initiatives, part of the EU-funded Recovery and Resilience Facility, aim to modernize transport infrastructure in the Municipality of Aradippou and the former community of Kalo Chorio. The ambitious projects are expected to be completed within 14 months.

The contract, signed on January 20, 2025, at the Department of Public Works, covers the design, construction, and long-term maintenance (12 years) of two state-of-the-art parking and transfer stations. Representing the government, Public Works Director Eleftherios Eleftheriou formalized the agreement with Spiros Hadjichristofi, Director of S. Hadjichristofi Construction Limited. The contract was awarded for €4,368,000 plus VAT following a competitive bidding process.

What’s in Store for Aradippou?

The project in Aradippou will reshape local mobility by delivering:

  • A reconstructed section of the road
  • A newly built roundabout
  • A single-story, covered building spanning 315 m²
  • Two bus bays along the road
  • An open parking area with space for 67 vehicles

Upgrades for Kalo Chorio

In the former community of Kalo Chorio, similar infrastructure will be developed, including:

  • A ground-level building of 315 m² with a covered area
  • Two bus bays along the road
  • A spacious open parking area with 195 spaces

These projects represent a significant step towards enhancing sustainable mobility and accessibility in Larnaca, creating practical and environmentally friendly transport solutions for residents and visitors alike.

Cyprus Services Sector Shows Robust Performance In 2025 As Tourism, Digital Innovation, And Shipping Surge

The Employers and Industrialists Federation (OEV) reported growth across Cyprus’ services sector in 2025, with increases recorded in tourism, professional services and administrative activities. Data show continued expansion across multiple sub-sectors, reinforcing the role of services in economic output and employment.

Service Sector Leadership

Accommodation and food services grew by 9.5%, while administrative and support activities increased by 7.4%. Professional, scientific and technical activities rose by 4.6%, followed by information and communication at 4.3%. Transport and storage recorded growth of 2.8%, while real estate activity increased by 0.4%. These figures indicate broad-based expansion across service industries.

A Remarkable Tourism Surge

Tourist arrivals reached 4,534,073 in 2025, marking a 12.2% increase year-on-year. December arrivals totaled 156,959, up 18% compared with the same period a year earlier. Tourism continues to support revenue generation and seasonal demand across the economy. Growth in visitor numbers contributes to activity in hospitality and related sectors.

Driving Digital Transformation

OEV is supporting digital adoption through initiatives such as the DiGiNN Cyprus Digital Innovation Hub. The program focuses on improving business processes, skills development and technology integration. Additional efforts include the establishment of a Digital Transformation and Innovation Committee and international engagement through business missions. These actions support the adoption of digital tools across sectors.

Resilient Shipping Sector

Shipping accounted for about 7% of Cyprus’s GDP in 2025, remaining a key component of the economy. The Cyprus Registry recorded its highest tonnage in 20 years, with an increase of nearly 20%. Fleet growth strengthens Cyprus’ position within European Union shipping registries and global maritime markets. The sector continues to contribute to economic stability.

Strengthening The Economic Foundation

OEV is organizing conferences, workshops and exhibitions to support business development across sectors. These initiatives focus on improving operational practices and industry collaboration. Continued investment in services and digital infrastructure is expected to support economic performance.

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