Market Update: Cyprus Business Now: tourism, CySEC, Finance Minister, economy, Cyta, GDP – Full Analysis

Cyprus business & economy news from the day before

Finance Minister Makis Keravnos on Friday said that Cyprus recorded economic growth of 4.5 per cent in the fourth quarter of 2025, confirming the resilience of the Cyprus economy despite external challenges.

“The data on the growth rate of Cyprus’ GDP in the fourth quarter of 2025 confirm once again the dynamism of the Cypriot economy despite the fact that the external environment is full of challenges and uncertainties,” Keravnos said.

“The policies of the Finance Ministry have shaped today an environment of stability and prospects, which is recognised both internally and by our international and European partners,” he added .

Referring to broader economic developments, he said that the government has “secured fiscal stability and sustainability”.

Cyprus has approved a new National Tourism Strategy to 2035, targeting 5 million visitors while upgrading quality and ensuring development respects sustainable principles, Deputy Tourism Minister Kostas Koumis said on Friday after a cabinet meeting.

Koumis said the plan updates the National Tourism Strategy 2030 adopted in 2020 so it aligns with the country’s long-term economic development vision.

“The new National Tourism Strategy now covers the period until 2035, in order to be consistent with the purpose and time limit for achieving the 2035 vision,” he said.

Its core objectives include improving the tourism product, promoting sustainable growth, transforming Cyprus into a digitally smart destination and reducing seasonality so the island gradually becomes a year-round destination.

The board of directors and management of Cyta on Friday issued a statement clarifying the organisation’s position on proposed amendments to the law governing its operation and its planned entry into the energy market.

“Equal regulatory framework with benefits for society and the country,” the statement said.

The statement was released following public discussion on modernising the legislation that defines the organisation’s mandate.

Cyta said the convergence of technology, energy and related services is already a European reality and stressed that it operates in a rapidly changing environment.

The organisation stated that it continuously monitors international trends and examines how its expertise and infrastructure can be utilised for the benefit of consumers and the country, always within its institutional framework.

Cyprus’ tourism sector achieved record-breaking arrivals and revenues in 2025, underscoring strong real income growth and improved market diversification, according to a analysis by Eurobank’s Konstantinos Vrachimis.

Total tourist arrivals reached 4.5 million in 2025, up from 4 million in 2024, marking an increase of 12.2 per cent year on year, with strong momentum sustained through the final months of the year.

The performance on the revenue side was even stronger, with cumulative tourism receipts for January to November rising to €3.6 billion, reflecting a 15.3 per cent year-on-year increase that outpaced inflation.

This, he explained, implies a clear real uplift in tourism-driven income and broader service-sector turnover.

Expenditure per person increased by 4.6 per cent, while expenditure per day rose by 9.2 per cent in the January to November 2025 period.

The data indicate that revenue gains were not driven solely by higher visitor volumes, as increased per-visitor spending played a meaningful role in strengthening tourism-led income growth.

Cyprus’ economy recorded stronger growth in the fourth quarter of 2025, with new national and European data confirming that the country continued to outperform the wider region.

According to a flash estimate by the statistical service (Cystat), Cyprus’ seasonally adjusted gross domestic product increased by 4.5 per cent year-on-year in the fourth quarter of 2025.

The statistical service said the positive GDP growth rate was mainly attributed to wholesale and retail trade and repair of motor vehicles, information and communication, and hotels and restaurants.

On a quarterly basis, GDP increased by 1.4 per cent, following growth of 0.9 per cent in the third quarter, 0.8 per cent in the second and 1.3 per cent in the first quarter.

The flash estimate aims to provide an early picture of the overall development of the Cyprus economy using preliminary data available about 45 days after the end of the quarter, before the full quarterly national accounts are released.

Meanwhile, Eurostat’s latest flash estimate reinforced Cyprus’ performance within the European context.

The Cyprus Securities and Exchange Commission (CySEC) on Friday announced that it is joining the International Organisation of Securities Commissions in a pre-Valentine’s Day global awareness campaign to combat relationship investment scams.

The regulator said the initiative is intended to highlight the growing sophistication of such schemes and the severe consequences they can have for investors’ financial security.

These schemes, which are also referred to as romance scams, crypto investment scams, financial grooming scams or “pig butchering” scams, are described as a calculated “long con.”

Fraudsters commonly make first contact through wrong-number text messages, dating applications or social media platforms.

They then gradually cultivate trust by presenting themselves as friends, romantic partners or financial mentors offering support in achieving investment goals.

Building activity in Cyprus continued to strengthen in October 2025, according to data released on Friday by the state statistical service (Cystat).

A total of 855 building permits were authorised during the month, with a value of €447.6 million and a total area of 356.2 thousand square metres. The permits provide for 1,950 dwelling units.

Over January – October 2025, permits reached 6,490 compared with 5,955 a year earlier, a rise of 9 per cent.

At the same time, the value of licensed projects climbed by 27.7 per cent, the covered area by 30.7 per cent, and authorised housing units by 33.1 per cent.

Residential building permits totalled 4,832 in the ten-month period, higher than the 4,047 recorded in 2024.

Cyprus’ house energy committee is examining revised opening hours for recreation centres, as part of a government bill aimed at modernising the catering sector and strengthening the competitiveness of the tourism product.

The legislation seeks to address weaknesses in the current framework, while also introducing new categories of establishments.

Following strong stakeholder reactions, the government amended the proposal, which is now being discussed article-by-article in closed committee sessions.

Final decisions are expected to go before the House plenary by April, ahead of parliament’s self-dissolution for elections.

The Cyprus Information Technology Enterprises Association (CITEA) on Friday expressed satisfaction with the initiative to restore Sopaz and the wider revitalisation plans for the area.

CITEA’s president George Malekkos welcomed the effort and focused particularly on the proposal to establish an innovation zone, saying it “can be a catalyst for technological development and business innovation in our country”.

At the same time, however, he raised concerns about the support framework that will accompany the project, stressing the need to ensure Cypriot IT companies benefit directly and that local know-how has a substantial role.

Cyprus has reaffirmed its commitment to gender equality in science, technology and innovation, describing it as a cornerstone of socio-economic development.

Speaking at the 11th Assembly of the Royal Academy of Science International Trust earlier this week, the country’s Permanent Representative to the United Nations Maria Michael said that “the promotion of women and girls in education and science is essential for the protection of human rights”.

She added that the commitment is reflected in the National Gender Equality Strategy 2024-2026, which adopts “a holistic approach to mainstreaming gender in all state policies”.

The aim, she said, is “to go beyond rhetoric and shape actions that deliver fair and measurable impact for both women and men”.

The Employers and Industrialists Federation (Oev) has issued a warning against renewed efforts to impose additional extraordinary taxes on bank profits, arguing that such measures would harm the economy and undermine investor confidence.

The federation expressed deep concern over the reintroduction of discussions on further taxation beyond the special levy on banks that has been in place since 2011, stressing that bank profits are being inaccurately described as unexpected.

It stated that “the only unexpected development during the collapse of Cyprus’ financial system and the state’s fiscal bankruptcy in the 2011 to 2014 crisis was the confidence shown by international investors, who took on significant risk and played a decisive role in rescuing the banking sector and, by extension, the wider Cypriot economy”.

“These investors supported this strategic sector with billions and for years had no return, no dividend and no benefit, yet they saw the prospect and demonstrated confidence in the stability of the legal and tax framework,” Oev said.

The cruise industry can become a key driver of growth for the Cypriot economy, provided it operates with sustainable practices and respect for the city, DP World Limassol CEO Simon Pitout said.

“We don’t want cruise ships that bring congestion but no revenue. We want a real connection with the local economy,” Pitout said.

Speaking to Entrepreneurial Limassol, a periodical published by the Limassol Chamber of Commerce and Industry (Evel), he referred to the cooperation with Marella Cruises, where Limassol operated as a homeport with impressive success.

He explained that “Passengers were thrilled. We brought their luggage directly from the airport to the ship, a level of service you don’t find everywhere.”

He then added that “in five years, I want Limassol to be on the Mediterranean map like Mykonos and Santorini”.

There are no plans at present to impose water supply cuts on hotel units or industrial facilities, either in Limassol or nationwide, the director of the Water Development Department (WDD), Eliana Tofa Christidou, said.

She explained that the Ministry of Agriculture, Rural Development and Environment together with the WDD are promoting water-saving practices, particularly in hotels, while non-essential uses in industrial areas are also being limited.

“Hotels play a critical role in reducing overall consumption,” she said.

Speaking to Entrepreneurial Limassol, a periodical published by the Limassol Chamber of Commerce and Industry (Evel), she noted the WDD remains in continuous communication with hotel associations and large tourism establishments, promoting specific measures.

Hotels, she said, are encouraged to install aerators and greywater reuse systems and limit external washing.

“Visitor awareness programmes are promoted to encourage responsible water consumption,” she added.

Cyprus has recorded a 23.2 per cent reduction in its net domestic energy use intensity over the last decade, according to Eurostat.

The figures show that the EU economy used 56.1 million terajoules of energy in 2023, representing a 4.1 per cent decrease compared with the previous year.

Businesses and government bodies were responsible for 72.3 per cent of total production activities, while household consumption accounted for the remaining 27.7 per cent.

When examining usage by specific economic activity, manufacturing held the largest share at 14.3 million terajoules, which is 25.5 per cent of the overall total.

This was followed by the supply of electricity, gas, steam, and air conditioning at 17.9 per cent and transport and storage at 12.3 per cent.