Cyprus Business Now: sustainable tourism, growth rate, EU economy report

European authorities this week confirmed Cyprus’ financial and economic stability in their 17th post-programme surveillance mission.

The latest report, released on Tuesday from the European Commission, European Central Bank (ECB), with input from the European Stability Mechanism (ESM), praised Cyprus’ solid fiscal framework.

However, it also cautioned about significant risks in key sectors of the economy and potential threats arising from global geopolitical tensions.

The country’s economic fundamentals remain strong, supported by strict fiscal discipline and a resilient banking sector.

Cyprus and Greece must focus on sustainability to enhance their tourism offerings, according to Deputy Tourism Minister Kostas Koumis.

Speaking at the 2nd Cyprus-Greece Business Forum on Wednesday, Koumis underlined the importance of tourism for both countries, saying that their natural beauty is a cornerstone of their appeal.

“The tourism sector is a major pillar for both economies,” Koumis said.

“In 2023, tourism contributed over 19 per cent of Greece’s GDP and 12.9 per cent of Cyprus’s GDP, with projections for Cyprus reaching 13.5 per cent in 2024,” he added.

Cyprus is expected to record the third highest growth rate in the Eurozone with 3.8 per cent for 2024, while unemployment, inflation and public debt continue their downward trend.

Addressing the second Cyprus-Greece business forum in Nicosia with Greek Prime Minister Kyriakos Mitsotakis, Christodoulides said the two countries, having left behind many years of challenges, are now two healthy and stable economies.

Cyprus, he said, aspired to become “one of the best places in the world for someone to live, work and be active” and in this direction the country was focusing its efforts on creating a stable and healthy fiscal environment and equipping the business community with the necessary instruments to face the challenges arising through the international market.

The largest investment in Cyprus, he added, was from Greece and exceeded €1 billion.

Energy infrastructure company VTTI celebrated ten years of operations in Cyprus, marking a decade as a key player in the Eastern Mediterranean energy market.

Thanos Patrikis, vice president for the Mediterranean region and Managing Director of VTTI Cyprus, reflected on the company’s journey.

“While we celebrate all we have achieved in the past decade, we also look forward with confidence and enthusiasm,” he said.

“VTTI Cyprus will continue leading in safe energy storage and management in the Mediterranean, with investments in green energy projects, always prioritising safety, reliability, and environmental and social responsibility,” he added.

CFA Society Cyprus this week highlighted a series of initiatives led by its president Nikos Potamaris, following the election of its new board of directors in July of this year.

According to an official announcement, the society has strengthened ties with key regulatory bodies, including the Cyprus Securities and Exchange Commission (CySEC), whose chair participated in a webinar on the ESG landscape.

It has also enhanced collaboration with the Central Bank of Cyprus (CBC) and secured sponsorships to organise events, discussions, and webinars aimed at deepening financial literacy and market knowledge.

The announcement also highlighted key initiatives, including hosting a discussion titled ‘Bridging the Racial Pension Gap’ under the auspices of the Speaker of the House.

Paphos secured the silver medal for the quality of its coast from among 100 green tourism destinations at the European Quality Coast Awards, the regional tourism board said on Wednesday.

Etap said after a long series of assessments, Paphos was awarded the medal and secured itself a place in the catalogue of the 100 Greenest Tourism Destinations in the World for the period 2024-26.

In this way Paphos will become more well known for its “unmatched beauty, for its picturesque beaches and the rich and rare vegetation of the Akamas”.

A group of businessmen who have formed the Nicosia-Cyprus Capital initiative have called for a rethink on the way traffic is allowed on the town’s once busy shopping street Makarios Avenue.

In a letter to Mayor Charalambos Prountzos, they called for traffic to be allowed back onto the whole street to increase the number of people visiting it.

“There is the possibility of taking measures in this direction without abandoning the basic goals and plans of the state,” they said after having discussed the issue with the Cyprus Association of Transport Engineers.

There are ways to make it easier for visitors to downtown Nicosia and Makarios Avenue itself to access car parks and the shops, they added.

The Cyprus Stock Exchange (CSE) ended Wednesday, November 27 with minor losses.

The general Cyprus Stock Market Index stood at 210.30 points at 12:57, reflecting a decrease of 0.09 per cent.

The FTSE / CySE 20 Index was at 128.11 points, reflecting a loss of 0.08 per cent.

The total value of transactions amounted to €489,454 at the aforementioned time during trading.

In terms of the sub-indexes, the main and alternative indexes fell by 0.11 per cent and 0.15 per cent respectively. The investment firm index also fell by 1.71 per cent, while the hotel index dropped by 0.17 per cent.

The biggest investment interest was attracted by the Bank of Cyprus (no change), Hellenic Bank (no change), Salamis Tours (no change), Demetra (no change), and Logicom (-1.23 per cent).