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UK Remains Top Market Amid Surge In Tourist Arrivals From Israel And Germany

Robust Growth In Cyprus Tourism

The latest report by the Cyprus Statistical Service (Cystat) reveals robust growth in Cyprus’ tourism sector, with a 12 percent increase in tourist arrivals in September 2025 compared to the same period last year, bringing the visitor count to 570,635. For the January to September period, tourism numbers surged by 10.3 percent, reaching 3,604,790, underscoring the island’s sustained appeal to international travelers.

Key Source Markets Driving Growth

The United Kingdom continues to dominate as the primary source market, constituting 31.4 percent of total arrivals with 179,293 visitors. Notably, Israel has emerged as a strong contributor, accounting for 14 percent (80,115 arrivals), while Poland (7.9 percent or 45,019 tourists) and Germany (6 percent or 34,348 visitors) follow closely behind. Germany and Israel, in particular, have recorded impressive year-on-year growth of 39.7 percent and 46.8 percent respectively, illustrating a dynamic shift in tourist origins.

Diversification And Market Adjustments

Additional markets such as Sweden, Romania, and Greece contribute modestly to the influx, with percentages ranging from 3 to 3.6 percent. Meanwhile, arrivals from Romania and Austria witnessed gains of 22.2 percent and 26.4 percent respectively, although the United Kingdom experienced a marginal decline of 0.9 percent. Slight downturns observed in France, Switzerland, Norway, and Sweden indicate that market variations remain a factor in the evolving tourism landscape.

Visitor Motives And Patterns

Analysis of travel purposes shows that an overwhelming 84.8 percent of visitors are drawn to Cyprus for holidays, complemented by 10.1 percent visiting friends and relatives, and 5 percent traveling for business. These consistent patterns reaffirm the island’s established reputation as a premier holiday destination.

Resilient Return Travel Trends

On the domestic front, the number of Cypriot residents returning from trips abroad climbed 6.4 percent to 166,129 in September 2025. Greece leads as the preferred destination for returning residents, accounting for 35.8 percent of the total return traffic, followed by notable numbers from Russia, the United Kingdom, and Italy. Despite global travel fluctuations, holiday travel remains the dominant purpose among Cypriot residents, demonstrating a steady trend towards leisure-based journeys.

Data Collection And Methodology

Cystat’s comprehensive survey, conducted at major entry points including Larnaca and Paphos airports along with administrative sources such as port arrivals, captures all individuals passing through passport control. It is important to note that these statistics reflect the number of trips rather than unique individuals, as travelers may undertake multiple trips within the period.

Mortgage And Business Loan Rate Dynamics Among Cyprus Banks

Stable Mortgage Loan Rates Post-Mergers

Recent consolidations in the Cyprus banking sector have led to a striking uniformity in mortgage loan interest rates. For example, data from November 2025 reveal that Bank of Cyprus, Eurobank Ltd, and Ancoria Bank are all offering an average rate of 2.98%. Alpha Bank even offers a marginally lower rate of 2.81% for home purchases, whereas smaller market players continue to provide loans at higher costs.

Differentiated Business Loan Offerings

In contrast, business loan interest rates demonstrate greater variability. For loans up to €1 million, Alpha Bank offers the most competitive rate at 3.31%, followed by the National Bank of Greece (Cyprus) at 3.78% (NBG Cyprus). Eurobank Ltd, Kyprian Bank of Development, and Bank of Cyprus post higher averages at 4.00%, 4.46%, and 4.47% respectively, while Societe Generale Bank Cyprus and Banque SBA register even steeper rates at 6.05% and 6.54%.

For loans exceeding €1 million, the trend remains similar: Alpha Bank leads with 3.64%, trailed by National Bank of Greece (Cyprus) at 3.99% and Bank of Cyprus at 4.18%. Eurobank Ltd and Kyprian Bank of Development follow with rates of 4.54% and 4.30%, whereas Societe Generale Bank Cyprus stands out with an average rate of 6.23%.

Competitive Deposit Rates Reflect High Liquidity

Deposits in Cyprus are offered at some of the lowest interest rates in the Eurozone, a situation that reflects the exceptionally high liquidity across the local banking systems. With a Liquidity Coverage Ratio (LCR) recorded at 319% in November 2025, well above the Eurozone median of 191%, major institutions such as Bank of Cyprus, Eurobank Ltd, and Alpha Bank feature household deposit averages of 0.67%, 1.11%, and 1.36% respectively.

Meanwhile, smaller banks including Ancoria Bank, National Bank of Greece (Cyprus), and Kyprian Bank of Development report higher deposit rates of 1.47%, 1.49%, and 1.25% respectively. For business term deposits (up to one year), Ancoria Bank offers the highest average rate at 1.51%, closely followed by Alpha Bank at 1.43%. Other institutions maintain averages between 1.12% and 1.42%, underscoring a competitive yet stratified market landscape.

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