Cyprus is experiencing growth in key sectors like tourism, finance, technology, and energy. Nissi Beach was named Europe’s best beach, while the energy sector prepares for more consumer choice in electricity suppliers.
What sectors are driving the economic growth in Cyprus?
- Tourism: Despite challenges, Cyprus has seen an increase in tourist numbers and revenue.
- Finance: The Central Bank set a new reference interest rate to regulate lending practices.
- Technology: Journey Mentor’s acquisition of an IT contract with TAS is set to transform travel-tech.
- Energy: With the opening of the electricity market, consumers can choose their suppliers, likely reducing costs.
- Beach Tourism: Nissi Beach was named “the best beach in Europe,” enhancing its tourist appeal.
Tourism Resilience in the Face of Adversity
In a display of resilience, Cyprus’s tourism sector has seen a commendable upswing. Despite facing a year filled with obstacles, the island nation witnessed not just a rise in tourist numbers but also a significant growth in tourism revenue during the year’s first half. This information was shared by Deputy Tourism Minister Kostas Koumis who pointed out the importance of maintaining a positive image and preventing negative press from escalating into more damaging narratives.
Events hosted by the Limassol Chamber of Commerce and Industry served as a platform for Mr. Koumis to emphasize the crucial role of local authorities in nurturing the tourism sector. He advocated strongly for the inclusion of a tourism-focused agenda within local governance, aligning social and infrastructure projects with the broader goals of Cyprus’ tourism strategy.
Financial Developments: The Central Bank’s New Reference Rate
The financial landscape in Cyprus has taken a new turn with the Central Bank of Cyprus setting a new reference interest rate at 11.76 percent. This decision, derived from the powers granted under the Penal Code Law, reflects the central bank’s ongoing efforts to regulate financial benefits and prevent any exploitation through excessive interest rates. The central bank has made it clear that any financial gains exceeding this reference rate will be considered an offence, signaling a strict stance on maintaining fair lending practices.
Tech and Travel: A New Era of Innovation
In the tech sphere, Nicosia and London-based Journey Mentor, a travel-tech SaaS company, is making waves with its recent acquisition of a five-year IT contract from Total Air Services Ltd, a key aviation services provider in Bangladesh. This partnership is poised to revolutionize TAS’s travel solutions, leveraging Journey Mentor’s innovative technology. The company’s CEO, Paul Sies, expresses his excitement about this new venture and the promise it holds for transforming the travel industry, particularly in less-explored markets.
The Charm of Nissi Beach: Europe’s Best
In a delightful revelation for beach enthusiasts, Ayia Napa’s Nissi beach has been crowned “the best beach in Europe” by the British insurance comparison website QuoteZone. Earning this title took into account various factors, including sea temperature, Tripadvisor reviews, and overall cost. Notably, Nissi beach boasts the warmest sea and air temperatures during peak summer months, and with its budget-friendly appeal, it provides a perfect balance of luxury and affordability.
Energy Sector Advances and Market Dynamics
July 2025 marks a significant turning point for Cyprus’s energy sector, with the opening of the electricity market. Energy Minister George Papanastasiou announced that consumers would soon have the freedom to choose their electricity suppliers, akin to their current options in the telecommunications industry. A six-month trial period will precede this shift, ensuring the smooth integration of systems for a competitive market. This development promises to bring down electricity costs and is anticipated to be a major boon for the country’s energy landscape.
The meeting chaired by President Nikos Christodoulides also addressed the importance of the electrical interconnection through the Great Sea Interconnector, the LNG terminal in Vasilikos, and the role of storage in the energy mix. This comprehensive approach underscores Cyprus’s commitment to a sustainable and cost-effective energy future.
In stark contrast to these positive developments, Cyprus has seen a downturn in the sales of petroleum products, with a 4.1 percent decrease in June compared to the same month last year. This downward trend encompasses a wide range of products, from ship oil supplies to kerosene and petrol, indicating a shift in the nation’s energy consumption patterns.
Stock Market Movements
In the realm of finance, the Cyprus Stock Exchange concluded a trading day with notable losses. A snapshot of the market index and individual sub-indexes reveals a mixed picture, with particular sectors such as the hotel industry holding steady while others experience declines. This fluctuation captures the dynamic and ever-changing nature of financial markets, reflecting broader economic currents as well as investor sentiment.
The stock exchange activity, including gains and losses of specific companies, provides a barometer for the economic health of the island. As Cyprus navigates through various sectors such as tourism, finance, technology, and energy, it continues to build on its strengths while adapting to the challenges that arise.
What sectors are driving the economic growth in Cyprus?
- Tourism: Despite challenges, Cyprus has seen an increase in tourist numbers and revenue.
- Finance: The Central Bank set a new reference interest rate to regulate lending practices.
- Technology: Journey Mentor’s acquisition of an IT contract with TAS is set to transform travel-tech.
- Energy: With the opening of the electricity market, consumers can choose their suppliers, likely reducing costs.
- Beach Tourism: Nissi Beach was named “the best beach in Europe,” enhancing its tourist appeal.
How has the tourism sector in Cyprus shown resilience?
In the face of adversity, Cyprus’s tourism sector has displayed remarkable resilience, witnessing a rise in tourist numbers and revenue during the first half of the year. The Deputy Tourism Minister emphasized the importance of maintaining a positive image and the role of local authorities in nurturing the tourism sector.
What new financial development has occurred in Cyprus?
The Central Bank of Cyprus has set a new reference interest rate at 11.76 percent to regulate lending practices and prevent exploitation through excessive interest rates. Any financial gains exceeding this reference rate will be considered an offence, reflecting the central bank’s commitment to fair lending practices.
What advancements have been seen in the energy sector in Cyprus?
Cyprus has opened up its electricity market, allowing consumers to choose their electricity suppliers. This shift is expected to reduce electricity costs for consumers and bring about market dynamics similar to those in the telecommunications industry. Additionally, the country is focused on sustainable energy solutions, including initiatives like the Great Sea Interconnector and the LNG terminal in Vasilikos to ensure a cost-effective energy future.
