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Halloumi Dilemma: Monitoring Committee to Reconvene Amid Controversy

Cyprus’ iconic cheese, halloumi, continues to face complex challenges, as the Halloumi Monitoring Committee is set to reconvene by the end of September. The meeting, which could prove pivotal for the future of the nation’s Protected Designation of Origin (PDO) status for halloumi, comes at a time when tensions are rising between producers, regulators, and agricultural stakeholders.

This latest session of the Halloumi Monitoring Committee will address compliance with PDO regulations, which have been at the centre of an ongoing debate. A PDO status, granted by the European Union, aims to protect traditional products by certifying their origin and production methods. However, achieving full compliance has proven challenging for Cyprus, with disagreements primarily revolving around the composition of halloumi and the ratio of cow’s milk versus sheep’s and goat’s milk used in its production.

The Ministry of Agriculture, Rural Development, and Environment has come under pressure to enforce stricter compliance with the PDO standards. Many dairy producers have been accused of deviating from the traditional recipe, prioritising mass production and cost efficiency. However, enforcing PDO requirements poses significant hurdles, as halloumi production is both an economic and cultural keystone for Cyprus. For many producers, aligning with the prescribed PDO guidelines while maintaining profitability is a delicate balancing act.

At the heart of the issue lies an economic and cultural conundrum: how to preserve the authenticity of Cyprus’ most famous export while ensuring the financial viability of producers who rely on halloumi for their livelihood. The product represents a significant portion of the island’s agricultural exports, with international demand soaring in recent years. In 2022 alone, Cyprus exported over €260 million worth of halloumi to markets across the globe.

As the September meeting approaches, the pressure mounts on regulators and stakeholders to find a sustainable solution. Industry experts suggest that any significant disruptions in halloumi’s PDO status could undermine Cyprus’ agricultural export sector. On the other hand, failing to enforce compliance could weaken halloumi’s global brand, risking its reputation as an authentic Cypriot product.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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