The services sector in 2023 saw robust growth, with accommodation and catering services leading the way with an 18.9% increase, administrative and support services following closely with a 15.5% rise. Professional, scientific, and technical activities also saw significant growth at 2.7%, reflecting global technological trends.
Tourism made a triumphant return in Cyprus, almost reaching pre-pandemic levels with 3,845,652 tourist arrivals. Shipping remained a key player in the country’s economy, handling 98% of raw material transport needs and contributing 7% to the GDP, setting the stage for future growth discussions at the Oev Annual General Meeting in 2024.
What growth did the services sector experience in 2023?
In 2023, the services sector exhibited strong growth with the accommodation and catering services increasing by 18.9% and administrative and support services by 15.5%. Professional, scientific, and technical activities grew by 2.7%, while the information and communication fields saw a 2% rise. This growth aligns with global technological and digital economic trends.
Robust Expansion Across Services Industries
The year 2023 has been a banner year for the services sector, according to the Employers and Industrialists Federation (Oev). This diverse sector, encompassing everything from tech support to tourism, showed notable performance improvements. The accommodation and catering services, for instance, soared with an 18.9 percent increase, signaling a resurgence of tourism and leisure activities. Administrative and support services weren’t far behind, marking a growth of 15.5 percent.
Professional, scientific, and technical activities experienced a subtler yet significant growth of 2.7 percent. Information and communication fields also advanced, though by a more modest 2 percent. These gains reflect broader global trends where technological advancements and the digital economy continue to drive growth across various sectors.
Tourism’s Triumphant Turnaround
Tourism, in particular, stood out with its remarkable recovery. In 2023, Cyprus welcomed back nearly as many visitors as before the pandemic, with tourist arrivals reaching 3,845,652. This figure was a breath away from the pre-pandemic levels of 2019, a testament to the sector’s resilience and the allure of Cyprus as a destination.
The United Kingdom led the pack in terms of tourist numbers, underscoring the enduring connection between the UK and Cyprus. With 1,302,125 visitors from the UK, the year 2023 marked a 7.38 percent increase from the previous year. Israel, Poland, and Germany also contributed significantly to the tourism revival, with double-digit percentage increases in visitor numbers from these countries.
Navigating Forward: Shipping and Future Plans
Cyprus’s strategic location has long made it a pivotal player in Mediterranean shipping and trade. Despite global challenges, the shipping sector remained a linchpin of the Cypriot economy, handling a whopping 98 percent of the country’s raw material transport needs in 2023. The industry’s robust performance further solidified its role, contributing approximately 7 percent to Cyprus’s GDP.
As we look to the future, the trajectory of the services sector is poised to be a hot topic at the Oev Annual General Meeting. This event, scheduled for April 23, 2024, promises to be a crucial forum for discussing strategies and initiatives that can sustain the sector’s growth momentum.
Innovations and Collaborative Efforts
2023 was also a year of proactive engagement by Oev in various forward-looking initiatives. Recognizing the importance of digital competencies in the modern workplace, the federation conducted research to shed light on the digital skills landscape among employees. This is crucial for steering businesses towards successful digital transformations.
Innovation was another area where Oev took the lead, rewarding two companies from the services sector with Cyprus Innovation Awards. This move underscores the federation’s commitment to promoting a culture of innovation. Informational presentations and debates on digital skill enhancement and artificial intelligence adoption also featured prominently in Oev’s activities.
Cross-border cooperation was emphasized through a business mission to Greece, orchestrated in partnership with the Pancyprian IT Business Association (CITEA). This initiative facilitated dialogues and potential synergies between Cypriot and Greek IT enterprises. Oev’s efforts extended to organizing informative events on arbitration and mediation for dispute resolution, showcasing the federation’s advocacy for effective conflict-resolution mechanisms. Additionally, Oev’s involvement in the newly established Tourism Promotion Agency highlights its continued support for a sector that is a cornerstone of the Cypriot economy.
What growth did the services sector experience in 2023?
In 2023, the services sector showed strong growth, with accommodation and catering services increasing by 18.9%, administrative and support services by 15.5%, and professional, scientific, and technical activities by 2.7%. Information and communication fields also saw a 2% rise, reflecting global technological trends.
How did tourism perform in 2023 in Cyprus?
Tourism in Cyprus made a triumphant return in 2023, with the country welcoming nearly as many visitors as before the pandemic. Tourist arrivals totaled 3,845,652, with the United Kingdom leading in visitor numbers. The resurgence of tourism in Cyprus highlighted the sector’s resilience and the country’s appeal as a destination.
What role did shipping play in Cyprus’s economy in 2023?
Shipping remained a key player in Cyprus’s economy in 2023, handling 98% of the country’s raw material transport needs and contributing approximately 7% to the GDP. The sector’s robust performance solidified its importance in the Cypriot economy despite global challenges.
What initiatives did the Employers and Industrialists Federation (Oev) undertake in 2023?
In 2023, the Oev engaged in various initiatives to promote innovation and collaboration within the services sector. This included research on digital skills among employees, the recognition of innovative companies with Cyprus Innovation Awards, and cross-border cooperation efforts with organizations such as the Pancyprian IT Business Association (CITEA). Additionally, Oev organized events on arbitration and mediation for effective dispute resolution and supported the newly established Tourism Promotion Agency to bolster the tourism sector.
