Larnaca And Paphos Set Course For Positive Tourism Growth In 2026

by THEFUTURE.TEAM

January 17, 2026

Strategic Enhancements And Sustainable Tourism Initiatives

Tourism stakeholders in Larnaca and Paphos are positioning themselves for a robust recovery in 2026, with a strategic focus on quality enhancements, sustainability, and targeted infrastructure improvements. Local authorities emphasize that although geopolitical and economic challenges persist, confidence remains high as both destinations build on their recent successes.

Upgraded Offerings And Enhanced Accessibility In Larnaca

In Larnaca, optimism after a successful 2025 underlines the strategic direction for the coming year. Dinos Lefkaritis, President of the Larnaca Regional Board of Tourism (Larnaca Tourism), stated that the upcoming plan will build on a strong foundation of initiatives. The focus is on upgrading the tourist experience by promoting authentic local elements while addressing practical challenges such as road improvements, beach erosion along areas like Oroklini, and enhancing access to tourist zones.

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Efforts will extend to expanding greenery, establishing tourist clusters such as the nine beekeeping villages in mountainous Larnaca, and resolving longer-standing issues including infrastructure delays and visual pollution. Enhanced coordination with local municipal authorities reinforces an integrated approach to promote Larnaca as a refined and accessible destination.

Digital Transformation And Thematic Diversification In Paphos

Similarly, Paphos is charting a course toward sustainable tourism, leveraging its strong performance in 2025 despite international uncertainties. Nasos Hadjigeorgiou, the Executive Director of the Paphos Regional Tourism Board, outlined plans for 2026 that prioritize year-round air connectivity with major carriers across Europe. Additional strategic efforts include developing thematic markets such as sports, wellness, rural tourism, and the 55-plus segment.

Paphos is also enhancing its digital infrastructure with new QR and smart information points, digital tours, and data analytics tools. The city’s forward-thinking initiatives, bolstered by collaborations with Hermes Airports, the Deputy Ministry of Tourism, and various industry players, are positioning it as a smart and experiential destination in the Mediterranean.

Sustainable And Experiential Tourism For The Future

Both Larnaca and Paphos are embracing a transition from traditional sun-and-sea tourism to a more experiential, quality-driven approach. Paphos, for instance, is promoting eco-friendly initiatives, interactive cycling routes, and a focus on local gastronomy and cultural events, further reinforcing its identity as a multi-thematic and smart destination.

In summary, with the backing of robust public-private partnerships and strategic investments, the outlook for tourism in these key Cypriot cities remains promising. As Cyprus prepares to host major international events including conferences under its EU Council Presidency, both Larnaca and Paphos are set to capitalize on new opportunities for growth in 2026.

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Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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