Cyprus tourism has achieved a historic record in 2025, with the first nine months of the year marking the best performance in the country’s history. According to Deputy Minister of Tourism Kostas Koumis, tourist arrivals from January to September surged 10.3% compared to 2024, and the sector’s contribution to the economy has risen to 14% of GDP, up from 13.3% last year.
Leading Europe in Revenue and Stays
The Deputy Minister, speaking to the Parliamentary Committee on Finance during the 2026 budget discussion, highlighted that Cyprus is not just growing, but outpacing its competitors.
Cyprus ranked first among all European Mediterranean nations for tourism revenue growth in the first half of 2025, recording a 21.3% increase. The country also led the entire EU in the growth of overnight stays in licensed accommodations.
The 2026 Strategy and Budget
To build on this success and ensure stability, the Deputy Ministry has tabled a 2026 budget of €74.6 million. The spending plan is heavily focused on maintaining momentum:
- €27.7 million (37.1%) is earmarked for information campaigns and promotional activities.
- €14.9 million (20%) is allocated for subsidy schemes, mainly aimed at improving the national tourism product.
- €19.5 million (25%) will cover operational expenses.
Notably, the operational budget includes €6.1 million specifically to manage the costs associated with hosting the Cyprus Presidency of the Council of the EU in 2026.
Mr. Koumis stressed that the ministry’s goal is to “lay a strong foundation for the future” by focusing on competitiveness, sustainable development, and a “green transition” for the sector.
Connectivity and Future Market Challenges
Despite the optimism, MPs raised concerns about practical challenges, particularly air connectivity.
While Mr. Koumis noted that Cyprus ranks second in Europe for connectivity improvements since 2019, he acknowledged a critical “gap” in direct flights to Brussels. With the 2026 EU Presidency approaching, he confirmed that the Ministry of Transport is already running a tender process to secure this vital route.
Regarding new markets, the Deputy Minister stated that while the ministry is investing in the Chinese market for the long term, direct flights are not considered commercially feasible at this stage.
Source: Stockwatch.com.cy