Unprecedented Growth Across All Levels

The tourism industry is marking historical milestones, breaking records and solidifying its resilience in a rapidly evolving economic landscape. Projections indicate that by 2025, the sector will reach new heights, with sustained momentum expected into 2026.

Strong Performance and Strategic Oversight

Deputy Minister of Tourism Kostas Koumis provided an in-depth overview of the sector during a recent session of the Parliamentary Committee on Economic and Budgetary Matters. He highlighted the notable increase in tourism’s contribution to Cyprus’s GDP, record-breaking revenue figures, and landmark visitor arrivals. This robust performance is complemented by enhanced air connectivity and the formulation of a new National Tourism Strategy, all of which are laying the groundwork for continued success.

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Record Metrics and Future Projections

Minister Koumis expressed optimism regarding the pace set to continue through 2026. Key indicators include:

• The approval of an updated National Tourism Strategy later in 2026.
• Robust international marketing initiatives to elevate Cyprus’s global profile.
• The introduction of a modern licensing and operational framework geared towards further enhancing the tourism product.

Notably, the tourism sector’s share of national GDP climbed from 13.3% in 2024 to 14% in 2025. Furthermore, between January and September 2025, visitor arrivals increased by 10.3% compared with the same period in the previous year and surged by 41% over three years. The first nine months of 2025 stand as the strongest in the history of Cypriot tourism, with Cyprus also recording the highest growth rate for overnight stays in the EU.

Budget Allocation and Investment Priorities

The tourism ministry’s budget for 2026 totals €74.6 million, with allocations strategically distributed to support promotional campaigns, enhance the tourism product through subsidy-linked initiatives, and cover operational costs. Among these expenditures, €27.7 million (37.1%) is dedicated to promotional campaigns, €14.9 million (20%) to tourism enhancement projects, and €19.5 million (25%) to operational initiatives. This comprehensive approach underscores the commitment to not only sustaining but also amplifying the sector’s growth trajectory.

Enhancing Air Connectivity

In the realm of air transport, Cyprus has made significant advances. Recent data from the Aviation Council International placed Cyprus second on a Europe-wide scale in improving air connectivity between 2025 and 2019, and top of the list in comparisons between 2025 and 2024. These improvements are largely attributed to the addition of direct flights to and from key airports in Europe and the Middle East.

Addressing Key Connectivity Vacuums

Deputy Minister Koumis also addressed existing connectivity gaps, notably the absence of a direct flight route between Larnaca Airport and Brussels. The Ministry of Transport has already initiated a competitive tender process to address this critical gap, further demonstrating a proactive approach to enhancing international accessibility.