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STEK Warns Power Outages Risk Damaging Cyprus Tourism

The Cyprus Association of Tourist Enterprises (STEK) has expressed concern over Wednesday’s electricity outages, saying the disruptions affected hotel operations and risked damaging the visitor experience during the peak tourism season.

Hotels Affected By Power Outages

In a statement, STEK said the interruptions created operational difficulties for hotels at a time when Cyprus is seeking to strengthen its position in international tourism markets.

The association said reliable electricity supply is essential for maintaining service standards and supporting the country’s competitiveness as a tourism destination.

Pressure On The Tourism Sector

STEK said the outages came during a challenging tourism season, with businesses already working to manage the impact of geopolitical developments in the wider region.

“Under these conditions, the last thing Cypriot tourism needs is additional internal problems that harm the image and credibility of the destination,” the association said.

The organisation also noted that electricity has become one of the highest operating costs for hotels, with energy expenses rising significantly in recent years.

Call To Strengthen Energy Infrastructure

STEK urged the government and relevant authorities to accelerate measures aimed at improving Cyprus’ energy security and ensuring sufficient electricity supply for critical infrastructure.

The association said reliable energy infrastructure is important for protecting the country’s competitiveness and international reputation.

Morningstar DBRS Upgrades Cyprus Outlook To Positive, Citing Strong Fiscal Performance

Cyprus President Nikos Christodoulides welcomed the confirmation of the country’s “A” credit rating and an upgrade in its outlook, saying the decision reflects the economy’s momentum and prospects.

In a post on X, Christodoulides said Cyprus is continuing on an upward path while advancing reforms aimed at strengthening competitiveness, resilience and credibility.

Fiscal Discipline Supports Investor Confidence

The rating decision points to the role of fiscal policy in Cyprus’ improving credit profile. Credit ratings remain an important indicator of a country’s institutional strength, borrowing capacity and macroeconomic stability.

For Cyprus, stronger public finances could support investor confidence and improve access to financing over time. A stronger credit outlook may also give the government more flexibility to support economic growth while maintaining fiscal discipline.

Reforms And Growth Create More Policy Space

Christodoulides said responsible fiscal policy and the government’s broader economic strategy are producing measurable benefits, including more and better-paid jobs, higher disposable income and new investment.

He added that these improvements are creating greater policy space to address citizens’ needs while continuing reforms designed to strengthen the economy.

Government Plans To Maintain Course

Christodoulides said his administration would continue pursuing its economic strategy with a focus on responsibility, consistency and reforms aimed at building a more competitive and resilient economy.

The latest rating action adds to recent evidence of improved fiscal conditions and Cyprus’ stronger position in international financial markets.

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