Cyprus Business News: Economy, Tourism, Energy and Financial Policy at a Glance
Cyprus Business News: Economy, Tourism, Energy and Financial Policy at a Glance
Cyprus has recently seen a significant revival in tourism. In the European Union, a historic high was reached in 2025 with a total of 3.08 billion overnight stays in accommodation establishments.
According to a Eurostat report published on Friday, the Cypriot tourism sector developed particularly dynamically and was thus above several regional comparative values. The number of overnight stays in tourist accommodation increased from 15,636,125 in 2023 to 17,909,478 in 2024. This corresponds to an increase of 14.54 percent within one year.
Finance Minister Makis Keravnos will travel to Brussels on 18 January to attend the Eurogroup meeting as well as the ECOFIN Council meetings. Among other things, economic policy priorities of the eurozone and the reconstruction plans of the member states are on the agenda.
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According to the Ministry of Finance, Keravnos will start its program on Monday, January 19, by participating in a Eurogroup meeting on the planned introduction of the euro in Bulgaria. The ministers will then discuss the economic policy priorities of the euro area for 2026. The basis for this is the recommendations of the European Commission from November. In addition, the results of the most recent G7 finance ministers' meetings will be presented. France, which holds the presidency in 2026, will present its political objectives.
The Cyprus Chamber of Commerce and Industry (Keve) announced the launch of the PLANBEE project on Friday. This is a large-scale initiative in the Mediterranean region with the aim of establishing beekeeping as a key pillar of rural development.
The project, entitled "Promoting Local Apiary Networks and Bee Entrepreneurial Excellence", aims to promote innovation, environmental protection and sustainable tourism in six partner countries. It is 89 percent co-financed by EU funds within the framework of the Interreg NEXT MED program. The total budget amounts to 2,807,656 euros, of which 2,498,813.84 euros come from EU funding. The coordinators include the Cyprus Chamber of Commerce and Industry and A.M. Filagrotiki Symvouleftiki Ltd.
In the energy sector, renewable sources covered an average of 47.5 percent of gross electricity consumption in the European Union in 2024. According to Eurostat, Cyprus continued to be in the lower range of EU countries. The EU average rose by 2.1 percentage points compared to 2023 and has almost tripled since 2004, when the share was 15.9 percent. Cyprus reached a share of 24.1 percent in 2024.
Despite these differences, the tourist regions of Larnaca and Paphos are optimistic about 2026. Local authorities expect stable demand, targeted quality improvements and a stronger focus on sustainability – despite ongoing geopolitical and economic uncertainties.
The president of the Larnaca Tourism Board (Etap), Dinos Lefkaritis, told the Cyprus News Agency that after a successful 2025, a new action plan is currently being prepared. The aim is to further enhance the tourist offer, to position the region internationally and at the same time to preserve the authentic features of Larnaca. In the future, concrete improvements are to be increasingly implemented on site.
In an article for the daily Phileleftheros, the governor of the Central Bank of Cyprus, Christodoulos Patsalides, painted an overall positive, but at the same time cautious picture of the economic situation. Although Cyprus is starting the new year from a strong position, the global environment remains characterized by uncertainties.
Patsalides expects economic growth of around three percent, well above the eurozone average. At the same time, the national debt continues to fall. The debt ratio has fallen below the 60 percent mark for the first time in years and thus meets the Maastricht criteria again. Inflation is expected to remain stable at around two percent, while the labor market remains robust.
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The EU-funded ReTour programme to strengthen the resilience of small and medium-sized tourism businesses has also been officially launched, including in Cyprus. The project is led by the National Technical University of Athens and has a total budget of €1.83 million, of which €1.63 million comes from EU funds. The aim is to better prepare tourism businesses for crises, seasonal fluctuations, climate risks and geopolitical developments.
In the industrial sector, Cyprus was one of the strongest performers in the EU in November 2025. Industrial production rose by 10.5 percent year-on-year – the second highest value in the entire Union, behind Ireland. By comparison, industrial production in the eurozone grew by 2.5 percent in the same period, and by 2.2 percent across the EU.
The occupancy rate of Cypriot hotels in 2025 was largely the same as in the previous year and in some cases even slightly higher. According to the Pasyxe hotel association, this confirms a second year of stable development. However, President Thanos Michaelides stressed that the economic viability of farms depends less on capacity utilization than on actual profitability, which has not risen to the same extent.
Positive developments were also recorded in the technology sector. Kinisis Ventures' investment portfolios showed increasing operational maturity at the end of 2025. Several holdings achieved sustainable sales and prepared the international market expansion.
The company Threedium described 2025 as a turning point in its development. The company transformed into a scalable 3D GenAI infrastructure platform, increasing its monthly recurring revenue by 42 percent and achieving a customer retention rate of 97 percent. Its customers include international corporations such as LVMH, L'Oréal and Diageo. At the same time, Threedium discontinued its studio business to focus on a higher-margin licensing model.
In the field of shipping, the Deputy Ministry expects a comprehensive national strategy to prevent and combat marine pollution to be finalised before the start of the summer season. The aim is clear coordination between the authorities involved with clearly defined responsibilities and response plans. The foundation stone for this was already laid in January 2024, when the Council of Ministers decided to centralise responsibilities and reorganise existing structures.
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advice for entrepreneurs, self-employed people and investors.
advice for entrepreneurs, self-employed people and investors.
Author: MF editorial team Tom Weyerman
Source: Eurostat, CY Government
