Breaking news

High Occupancy Rates for Cyprus Restaurants in October; Winter Decline Anticipated

Restaurants, cafes, and bars in Cyprus experienced a strong October, with occupancy levels reaching 80 to 90 per cent, according to Neophytos Thrasyvoulou, president of the Federation of Leisure Centre Owners (Osika). He described October as a “very successful month” for the food service industry.

However, with winter approaching, Thrasyvoulou acknowledged potential challenges, especially with the impact of regional instability. “Visitor numbers have seen a slight drop in recent days,” he noted, though he hopes that occupancy levels will remain steady until mid-November. By early November, Thrasyvoulou expects visitor occupancy to hover around 50 to 60 per cent, after which the responsibility will lie with businesses to keep operating, with support from the Labour Ministry’s programme to extend the tourism season.

Reflecting on the earlier summer months of June and July, Thrasyvoulou highlighted that visitor numbers were initially lower than expected, largely due to Middle East tensions. The trend eventually improved, leading to a stronger second half of the season.

Despite rising costs, Thrasyvoulou urged business owners to maintain affordable pricing, aiming to keep dining accessible for both locals and tourists amid economic pressures.

Cyprus Current Account Gap Widens As External Debt Climbs In First Quarter Of 2026

Cyprus entered 2026 with a weaker external position, as the country’s current account deficit widened in the first quarter and its international investment position deteriorated, according to preliminary data released on Tuesday by the Central Bank of Cyprus (CBC).

Deficit Worsens Amid Softer Services Performance

The current account deficit widened to €1.27 billion in the first quarter of 2026 from €1.01 billion a year earlier, an increase of €263 million. Excluding special purpose entities (SPEs), the deficit reached €1.37 billion, compared with €1.12 billion in the first quarter of 2025.

According to the CBC, the deterioration was driven mainly by a larger secondary income deficit and weaker net exports of services. Financial services, telecommunications, computer services and information services all weighed on the balance, although the impact was partly offset by an improved goods balance and a narrower primary income deficit.

Financial Flows Remain Positive

Despite the weaker current account position, Cyprus recorded net financial inflows of €1.14 billion during the quarter, exceeding the level reported a year earlier. The increase reflected a smaller net outflow in portfolio investment together with stronger net inflows under other investment, the CBC said.

External Balance Sheet Weakens

Cyprus’ international investment position also deteriorated during the quarter. The country’s net liability position widened to €28.31 billion at the end of the first quarter from €28.17 billion three months earlier.

After excluding SPEs, net liabilities increased to €10.03 billion from €8.93 billion at the end of 2025. Gross external debt rose to €226.66 billion from €225.19 billion, while external debt assets edged down slightly to €223.53 billion from €223.62 billion. As a result, net external debt increased by €1.57 billion to €3.14 billion.

Excluding SPEs, gross external debt stood at €59.94 billion, up from €59.18 billion at the end of 2025. Over the same period, net external debt improved slightly to minus €30.46 billion from minus €30.95 billion.

Trade Links Show Mixed Picture

The CBC reported current account surpluses with Germany and Russia during the first quarter, while deficits were recorded with Greece, the United Kingdom and the United States.

At the regional level, Cyprus narrowed its current account deficits with both the European Union and the euro area, providing a modest offset to the broader weakening in the country’s external balance.

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