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MP stresses importance of public investments for Cyprus

Cypriot MP Christiana Erotokritou stressed the importance of public investments for Cyprus due to the disproportionate immigration and demographic pressures the country is facing and the adverse effects of climate change. 

Erotokritou who is the President of the Cyprus House  Finance and Budget Committee, intervened in Budapest during a meeting of the Inter-Parliamentary Conference on Stability, Economic Coordination and Governance in the European Union.

In her intervention regarding Cyprus, she noted that the country is on a steady path of public debt reduction, maintaining healthy fiscal surpluses, however, it presents a large current account deficit.

She pointed out that the country-specific recommendations of the European Commission for Cyprus highlight the imperative need for full and timely implementation of the Recovery and Resilience Plan to reduce the country’s excessive dependence on oil and accelerate the completion of the necessary reforms and investments.

In this context, Erotokritou said it is important to have public investment for Cyprus due to the disproportionate immigration and demographic pressures the country is facing and the adverse effects of climate change.

Erotokritou stressed that the key challenge is to balance fiscal discipline and sustainable development, ensuring that fiscal responsibility, sustainable development and social cohesion go hand in hand and that the economic governance framework contributes to addressing current and emerging challenges of the EU and shaping a more hopeful future for all European citizens.

Cyprus Airports Experience Sharp Decline Amid Middle East Turbulence

Declining Numbers Signal Shifting Trends

Passenger traffic at Cyprus airports declined 15.3% year over year in March 2026, according to Hermes Airports. Total traffic reached 599,218 passengers, compared with 707,204 in March 2025, indicating a clear slowdown after previous months of growth.

At Larnaca Airport, passenger numbers fell 17.1%, from 501,594 to 415,686. Paphos Airport recorded a 10.7% decline, with traffic decreasing from 205,610 to 183,532. The data show a broad-based decrease across the country’s main entry points.

Regional Instability Influences Traveller Behavior

The decline follows ongoing tensions in the Middle East, which have affected travel demand and booking patterns across the region. Airlines reported higher cancellation rates and slower bookings for March and April, particularly for routes linked to the Gulf. Flights to Qatar have been suspended, while European routes continue to operate with limited disruption.

Government Intervention And Future Outlook

The tourism sector has identified May 2026 as an important period for assessing demand recovery and booking trends ahead of the summer season. Authorities introduced a support scheme offering a 30% payroll subsidy for hotels with occupancy below 60% or revenue declines exceeding 40%. The measure is aimed at supporting businesses affected by reduced tourist flows and lower occupancy rates.

Industry participants continue to monitor booking patterns, cancellations, and occupancy levels as regional developments influence travel demand.

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