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Famagusta Bets On Sports, Culture And New Air Links To Extend Its Tourist Season

by THEFUTURE.TEAM

October 6, 2026

For decades, the Free Famagusta district has pursued one strategic objective: to extend its tourism season beyond the summer months. The stakes are high. As the region with the largest share of Cyprus’ tourist beds — accounting for 42% nationwide — any progress in lengthening the season would deliver meaningful gains for the local economy and the island’s broader tourism model.

Ayia Napa and Protaras operate at full capacity for roughly six months during a strong season, with hotels, restaurants and leisure businesses running at peak intensity. Yet the challenge remains clear. In October 2025, a record year for Cypriot tourism, only 20% of total arrivals were directed to the Free Famagusta district. That gap underscores the scale of the opportunity.

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A Unified Regional Strategy

Local stakeholders have spent years trying to attract more visitors during the colder months, but results have been uneven. One factor was the long-standing rivalry between Ayia Napa and Protaras, which until recently competed more than they cooperated. Since the summer of 2024, however, the two municipalities have chosen a different path. They have put aside differences and begun coordinating their efforts, creating new momentum for the region’s tourism sector.

Today, the focus is on strengthening the area’s offering in a more integrated way, with the long-term aim of gradually extending the tourism season and attracting both Cypriot and international visitors.

Why Year-Round Tourism Takes Time

Officials involved in the strategy say there is no quick fix. George Tofinis, chairman of the Famagusta Regional Tourism Board, said the push for year-round tourism requires time, planning, incentives and close cooperation between the public and private sectors.

“It is a strategy that needs time, proper planning, incentives and collaboration between the public and private sectors, and it certainly cannot be achieved overnight,” he said.

The approach centers on a broader mix of activities designed to diversify demand. These include international sporting events, cultural productions, festivals, concerts, Christmas programming and outdoor experiences tied to the region’s nature and inland communities. According to Mr. Tofinis, the initiatives launched in recent years show that the destination is gradually being upgraded with new experiences and events.

Air Connectivity And Regional Cooperation

A key part of the plan for 2027 is deeper cooperation between the tourism authorities and hotel operators of Famagusta and Larnaca. The two sides are in discussions with Hermes Airports and major travel organizers to secure more flights in March and November. If successful, the move could extend the tourism season by around two months.

At the same time, a coordinated digital campaign promoting the Famagusta district in foreign markets is being implemented for a third consecutive year. For 2026, it will continue through the autumn and part of the winter, reflecting a calculated effort to capture both last-minute bookings for the shoulder season and early demand for summer 2027.

The campaign is led by the Famagusta hotel association, in close cooperation with the regional tourism board and with financial support from the municipalities of Ayia Napa and Paralimni-Deryneia, Bank of Cyprus, and local hoteliers.

According to Panagiotis Constantinou, chairman of the Famagusta hotel association, dozens of accommodations in Protaras and Ayia Napa will remain open until the end of November this year, while only a limited number of hotels are expected to operate during winter. He added that as efforts intensify and visitor numbers improve, more properties will stay open for longer periods.

“What is needed,” he said, “is support from the state as well, because appropriate incentives and mechanisms are essential to sustain these initiatives.”

Sport As A Tourism Product

One of the strongest pillars in the effort to extend the season is sport. Regional leaders see sporting events — as well as team training camps during the winter — as a significant source of visitor traffic. Mr. Tofinis said sport is now being treated not merely as a parallel activity, but as a tourism product in its own right.

This year’s calendar features several prominent events. The first Cablenet Famagusta Run will take place in Protaras on October 11, while the SwimRun is scheduled for October 17-18, 2026. The 4th International Dragon Boat Regatta will be held at Ayia Napa Marina on October 10-11, and OceanMan will return to Ayia Napa from November 6-8, 2026.

Winter programming continues with the 4th International Winter Swimmers Festival, set for January 16-19, 2027, in Ayia Napa.

Football remains another reliable winter draw, particularly in Ayia Napa, where tournaments and team preparations from January through April continue to bring in visitors. In March, the 3rd Elite Neon Cup, scheduled for March 13-15, 2027, will add another international event to the calendar. Combined with the long-running academy tournament hosted annually in Ayia Napa, it is expected to attract hundreds of guests during a period when tourism activity is typically subdued.

Also on the schedule is the 6th Run4Autism, to be held in Ayia Napa on March 28, 2027.

Culture, Heritage And Nature As Growth Drivers

Beyond sport, the region’s leaders point to culture, history and nature as critical tools for attracting visitors during slower periods. The Medieval Festival of Ayia Napa remains one of the district’s signature events and will take place from October 14 to 18, 2026, drawing visitors from multiple countries.

Another major event, Cyprus Rocks, is currently being held in the Pernera area of Paralimni and runs until October 6.

From November 7 to January 7, 2027, Ayia Napa Biennale will also take place. Meanwhile, the Thalassa Municipal Museum is planning a series of family-focused activities throughout November and December.

From November, the Endless Sun program will resume and run through March. Delivered by the Famagusta Regional Tourism Board, the initiative aims to deepen the visitor experience by connecting guests with the roots, culture and traditions of the inland areas.

The direction is clear: Famagusta is no longer relying solely on summer sun and beach tourism. By combining events, air connectivity, digital marketing and destination cooperation, the district is building a more resilient tourism model — one that could eventually keep visitors arriving well beyond the traditional high season.

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Cyprus Depositors Lag Behind As Mortgage Costs Rise, CBC Data Shows

by THEFUTURE.TEAM

October 6, 2026

Cyprus households are earning relatively modest returns on their savings even as mortgage borrowing costs climb again, according to new Central Bank of Cyprus data that places the country among the euro area’s weakest performers on deposit rates.

Deposits Rise, But Remain Near The Bottom Of The Euro Area

The central bank’s latest analysis, covering August 2026, found that the interest rate on new household deposits with agreed maturities of up to one year increased to 1.35 per cent from 1.27 per cent in July. Over the same period, the average rate on new house purchase loans rose sharply to 4.16 per cent from 3.78 per cent.

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The contrast underscores a persistent imbalance in how interest rate changes are being transmitted across Cyprus’s banking system. While borrowers have felt the impact of higher rates more directly, savers continue to receive returns that remain unusually low by euro area standards.

The CBC said deposit rates in Cyprus sit at the lower end of the euro area and remain an outlier. The transmission of market interest rate changes to deposits has also been weaker in Cyprus than in almost every other euro area country, affecting both households and businesses.

Borrowing Costs Are Closer To The Euro Area Median

The picture on the lending side is more mixed. Interest rates on outstanding loans and on new lending are broadly aligned with the euro area median.

According to the CBC, the interest rate on outstanding loans to households in Cyprus was only 0.1 percentage points below the euro area median, while the corresponding rate for non-financial corporations was 0.3 percentage points above it. For new lending, the weighted average rate on loans to households for house purchase was 0.2 percentage points below the euro area median, while the rate for non-financial corporations was 0.1 percentage points lower.

Still, the latest monthly data show a notable increase in mortgage pricing in August. The average rate on house purchase loans rose to 4.16 per cent, from 3.78 per cent in July. The CBC noted that this is a weighted average across different types of housing loans, including mortgages for primary residences and holiday homes.

Because the composition of banks’ housing loan portfolios changes from month to month, weighted averages can move even when the underlying rates offered by banks have not shifted by the same amount.

Consumer Credit Rises, Business Lending Eases

Consumer borrowing also became more expensive, with the average interest rate rising to 7.12 per cent in August from 6.94 per cent in July.

For businesses, the trend was more favourable. The rate on loans of up to €1 million edged down to 4.45 per cent from 4.47 per cent, while the rate on loans above €1 million fell more sharply to 3.67 per cent from 4.29 per cent.

Even so, new lending volumes fell significantly across the board in August. Pure new lending dropped to €251.40m from €415.00m in July, while total new lending, which includes refinancing and other operations, declined to €390.10m from €686.10m.

Pure new consumer loans fell to €19.30m from €23.90m, and total lending in that category slipped to €20.70m from €26.50m. Pure new house purchase loans fell to €114.40m from €149.50m, while total lending for house purchases declined to €141.90m from €205.80m.

Business lending also slowed. Pure new loans of up to €1 million declined to €35.50m from €52.30m, while pure new lending above €1 million fell to €77.00m from €162.30m.

Why Cyprus Deposits Stay Low

The CBC’s euro area comparison is especially telling for savers. Unlike lending rates, the interest rates on existing deposits in Cyprus remain near the bottom of the euro area, which the central bank described as an outlier.

The CBC attributed this in part to the high level of excess liquidity held by Cypriot credit institutions. Cyprus’ Liquidity Coverage Ratio stood at 313 per cent in August 2026, compared with a median of 182 per cent and an EU average of 158 per cent in June 2026, the latest available figures cited by the central bank.

The relatively short maturity structure of Cyprus’s banking sector was also identified as a factor weighing on deposit rates. Rates offered on new deposits are similarly subdued and remain close to those paid on existing balances, reflecting the same underlying market conditions.

In practical terms, this means the European Central Bank’s monetary policy cycle has affected borrowing costs in Cyprus more visibly than it has improved returns for depositors. Savers have received only a limited pass-through of higher interest rates, even as borrowers have faced higher costs.

Mortgage Preferences Are Changing

The CBC also highlighted a marked shift in the type of mortgage borrowing being taken out by Cypriot households.

The share of new house purchase loans carrying a variable interest rate has fallen dramatically, from almost 100 per cent at the beginning of 2022 to just 12.0 per cent in August 2026. That is now below the euro area median.

The central bank said this may partly reflect borrowers opting for fixed-rate loans for an initial period, typically three to five years, before switching to floating rates. The shift suggests households are becoming more conscious of interest rate risk, a development banks will need to reflect in their risk management frameworks.

A similar trend is visible when household and business loans are viewed together. The share of new loans to households and non-financial corporations carrying floating rates has dropped from almost 100 per cent at the beginning of 2022 to 55.9 per cent in August 2026, below the euro area median. The CBC said this could again partly be explained by fixed-rate periods early in the life of a loan, before conversion to floating rates later on.

The Bottom Line For Savers And Borrowers

For households, the latest data point to a mixed picture. Mortgage rates remain broadly comparable with the euro area, but deposit returns remain unusually low, while the cost of new house purchase loans rose significantly in August.

The central bank’s analysis suggests that the core issue for Cypriot savers is not that lending rates are especially high by euro area standards. Rather, it is that interest rate changes have been passed through to deposits far less fully than elsewhere in the currency union.