Services sector records strong growth in 2023

The services sector performed very well in 2023 said the Employers and Industiralists Federation (Oev), with significant improvements registered in several key areas.  

Notably, the indicators for accommodation and catering services saw an impressive increase of 18.9 per cent, administrative and support services grew by 15.5 per cent, professional, scientific, and technical activities by 2.7 per cent, and the field of information and communication by 2 per cent. 

Furthermore, the Tourism sector demonstrated notable improvement in 2023 compared to the preceding years of 2022 and 2021. Tourist arrivals in Cyprus in 2023 reached 3,845,652, approaching the pre-pandemic arrivals (3,976,777) of 2019. This marked a significant rebound from the 3,201,080 arrivals in 2022, and a dramatic increase from the mere 631,609 in 2021. 

According to the Cyprus Statistical Service (Cystat) traveller survey, in 2023, tourists from the United Kingdom reached 1,302,125, up from 1,212,603 in 2022 and 390,638 in 2021, recording an increase of 7.38 per cent. This positioned the UK as the country with the most arrivals, followed by Israel with 410,607 (up 48 per cent), Poland with 273,872 (up 46.62 per cent), and Germany with 211,216 (up 6.45 per cent). 

Additionally, the Shipping sector continued to play a crucial role, transporting 98 per cent of all raw materials and essential goods in Cyprus in 2023. Despite facing challenges, this sector has maintained its high performance, cementing its status as one of the most dynamic business sectors of Cyprus contributing about 7 per cent of GDP. 

The trajectory of the Services Sector will be a key topic of discussion at the Oev AGM, scheduled to take place on Tuesday, April 23, 2024. 

In the year under review, Oev undertook various initiatives. Among these actions was conducting research aimed at identifying and highlighting the digital skills of employees, crucial for the digital transformation of businesses. 

Moreover, Oev awarded Innovation Awards to two companies in the Services Sector as part of the Cyprus Innovation Awards competition, signalling its commitment to fostering innovation. 

The Federation also engaged in informational presentations and panel discussions focused on the promotion of digital skills and the adoption of Artificial Intelligence.  

In collaboration with the Pancyprian IT Business Association (CITEA), Oev spearheaded a Business Mission of Cypriot IT businesses to Greece. This initiative aimed at holding meetings and creating synergies between Cypriot and Greek IT businesses, illustrating a commitment to cross-border collaboration. 

Furthermore, Oev organised an Information Day on the advantages of including a clause in contracts for the resolution of disputes through Arbitration and Mediation. This demonstrated Oev’s dedication to promoting effective conflict-resolution methods. The Federation also played a part in the newly established Tourism Promotion Agency, underlining its support for the tourism sector.