The tourism sector in Cyprus faces a significant downturn this year, with an estimated 30,000 fewer visitors and a loss of approximately €25 million, according to the president of the hotelier’s association (Pasyxe), Thanos Michaelides.

In a statement made to the Cyprus News Agency (CNA) on Thursday, Michaelides highlighted the need for extending the tourist season and increasing the number of operational hotel units, which he believes would help mitigate seasonal variations in employment, boost trade, and grow state revenue.

Michaelides explained that such measures would provide more stability for workers within the tourism sector, thereby attracting more individuals to tourism-related professions.

He also stressed the importance of the tourism industry, which employs about 53,000 people, a share of 11 per cent of Cyprus’ employed population.

“This workforce includes a diverse range of professionals, from chefs and IT specialists to lawyers and engineers, making the sector a crucial part of the national economy and labour market,” he said.

Moody’s Ratings announced on Thursday that it has upgraded the Bank of Cyprus’ long-term deposit ratings to Baa1 from Baa3, changing the outlook to stable from positive.

According to the agency, this upgrade reflects the ongoing improvements in the bank’s solvency profile and the increased protection for depositors following the issuance of senior unsecured debt.

The upgraded ratings include the Baseline Credit Assessment (BCA) and Adjusted BCA, now ba1 from ba2, long- and short-term deposit ratings to Baa1/P-2 from Baa3/P-3, and long-term Counterparty Risk Assessment to Baa1(cr) from Baa2(cr).

Moreover, the long-term Counterparty Risk Ratings were also upgraded to Baa1 from Baa2, along with the long-term senior unsecured and junior senior unsecured Medium-Term Note (MTN) programme ratings to (P)Ba1 from (P)Ba2, and the long-term local-currency senior unsecured debt rating to Ba1 from Ba2.

Moody’s said that the Bank of Cyprus’ long-term senior unsecured MTN programme ratings were upgraded to (P)Ba1 from (P)Ba2, and its long-term subordinated MTN programme ratings to (P)Ba2 from (P)Ba3.

Additionally, the long-term local-currency subordinated debt rating was raised to Ba2 from Ba3, and the long-term local-currency Preferred Stock Non-cumulative rating to B1 (hyb) from B2 (hyb).

The Cyprus association of hospitality venues (Pasika) on Thursday called on newly elected mayors and municipal councils to be vigilant and stringent in granting permits for public events, stressing that festivals are hurting their businesses.

In its statement, Pasika said that it is necessary for public authorities to set criteria, standards, and conditions, including the association’s involvement, for approved events.

Moreover, the association expressed significant concern over the surge of complaints from its members regarding the numerous events being held across Cyprus, especially in urban areas.

“The newly elected mayors and municipal councils must be cautious and very strict about what they allow and permit,” the association stated.

“They must establish criteria, specifications, and conditions with Pasika’s participation,” it added.

The trade deficit in Cyprus for the period of January to May 2024 stood at €3.12 billion, reflecting a decrease of 16.5 per cent compared to €3.73 billion during the same period in 2023, according to a report released this week by the Cyprus Statistical Service (Cystat).

The report, which was based on preliminary data, Cyprus’ total imports of goods from January to May 2024 amounted to €4.65 billion, a decline of 14.4 per cent from €5.44 billion in the same period of 2023.

Meanwhile, the total exports of goods for the same period stood at €1.53 billion, down 9.5 per cent from €1.69 billion in January to May 2023.

The Deputy Ministry of Research, Innovation and Digital Policy on Thursday said that Cyprus has made robust strides in the digital sector, something which is backed by the European Commission’s latest ‘State of the Digital Decade 2024’ report.

This annual review measures the digital readiness of EU member states and tracks their progress towards the ambitious goals set for 2030.

Discussing the report’s findings, Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou, expressed his satisfaction with the progress and momentum recorded in Cyprus’ digital landscape.

“The government,” he said, “is committed to the digital transition, striving to implement digital solutions that significantly enhance the everyday lives of Cypriot citizens”.

The Research and Innovation Foundation (RIF) this week commented on the latest results from the European Innovation Scoreboard 2024, which once again reaffirms Cyprus’ progress in the field of innovation, classifying it as a Strong Innovator for the third consecutive year.

Notably, Cyprus leads its peers with an impressive 39 per cent improvement since 2017, the highest recorded in the region.

Speaking on this achievement, Demetris Skourides, the Chief Scientist for Research, Innovation and Technology and Chairman of the Board of Directors of the RIF, lauded the collective efforts that have driven these results.

“This is a significant success for our country,” he said, noting that “the strategic policies, the robust funding programmes of the RIF, and the supportive incentives from the government are all paying dividends, boosting our entire Research and Innovation ecosystem”.

The Cyprus Stock Exchange (CSE) ended Thursday, July 11 with profits.

The general Cyprus Stock Market Index was at 163.10 points at 13:24 during the day, reflecting an increase of 0.65 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 99.20 points, representing a rise of 0.67 per cent.

The total value of transactions came up to €265,489, until the aforementioned time during trading.

In terms of the sub-indexes, the main and investment firm indexes rose by 1.17 per cent and 3.46 per cent respectively. The alternative index fell by 0.53 per cent. The hotel index remained unchanged.

The biggest investment interest was attracted by Vassiliko Cement Works Public Company (-1.13 per cent), Demetra (+3.54 per cent), Hellenic Bank (+0.39 per cent), and the Bank of Cyprus (no change).