Larnaca’s Tourism Sector Poised For Growth In 2026, Says Chamber President

by THEFUTURE.TEAM

January 21, 2026

Dr. Nakis Antoniou, President of the Larnaca Chamber of Commerce and Industry, has outlined a bright outlook for Larnaca’s tourism sector in 2026, emphasizing that positive factors are aligning for robust growth in the city.

Cultural Capital as a Catalyst

The recent honor of being named the European Cultural Capital for 2030 is expected to significantly boost tourist arrivals. This prestigious accolade not only enhances Larnaca’s profile but also fosters an environment where cultural tourism can thrive.

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Investment in Boutique Hotel Developments

Antoniou noted that there have been approximately 20 proposals for the establishment of small luxury hotels or boutique accommodations within the city. These projects often repurpose existing structures to create unique lodging experiences that encourage visitors to explore local dining, cafes, and the city’s picturesque neighborhoods. This strategic shift promises to stimulate the local economy by directing tourism benefits to a wider range of local businesses.

Marina Developments and Infrastructure Enhancements

In tandem with the hotel investments, enthusiasm is growing around plans for the city’s marina. Discussions are currently underway with Greece’s Ministry of Transport, Communications, and Works, with a pilot study on the marina’s development being led by the Greek Public Investment Fund. Additionally, the prospect of a legal endorsement for a proposal by Panos Alexandrou, CEO of Prosperity Group CY Ltd, signals further commitment to transforming Larnaca’s port and marina into a vibrant center of economic activity.

Enhanced Connectivity for a Growing City

Another major boost to Larnaca’s tourism prospects is the imminent completion of the third phase of the Larnaca – Dekeleia coastal road project. This new infrastructure is expected to not only improve local and international access but also to facilitate greater movement of tourists throughout the city, reinforcing Larnaca’s reputation as a prime travel destination.

Outlook: A Promising Future

With escalating investments, enhanced infrastructure, and a renewed focus on cultural assets, local investors and business leaders are confident in Larnaca’s upward trajectory. Dr. Antoniou concluded that the combination of these developments, along with the removal of longstanding environmental challenges along the seafront, positions Larnaca for sustained tourism growth and economic prosperity.

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Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

by THEFUTURE.TEAM

February 13, 2026

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.

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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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