Cyprus enters 2025 with optimism for its tourism sector, which is expected to match or surpass that of 2024, itself a record-breaking year, deputy minister Kostas Koumis said on Tuesday.

Last year, arrivals surpassed four million tourist for the first time, generating over €3 billion in revenue.

Koumis said tourist arrivals so far this year are already up by six per cent compared to the same period last year. He credited this growth to improved air connectivity.

A key focus for the government, he added, is extending the tourism season beyond the traditional summer peak.

Policies and incentives have been introduced to attract niche markets, such as sports tourism. The success of these initiatives is evident, with two recent sporting events bringing over 5,000 international visitors to Cyprus in just two weeks.

The Central Bank of Cyprus (CBC) has decided to maintain the countercyclical capital buffer (CCyB) at 1.5 per cent, with the measure set to take effect from January 14, 2026.

In an official announcement, the CBC stated that, in accordance with the Macroprudential Supervision of Institutions Laws of 2015 to 2022, it deemed it necessary to keep the CCyB at 1.5 per cent, a level first adopted by the bank’s decision on January 14, 2025.

The set percentage will come into force a year later, in January 2026.

At present, the countercyclical capital buffer rate in effect since June 2, 2024, stands at 1 per cent.

Cyprus’ Producer Price Index (PPI) in industry for February 2025 fell by 0.5 per cent year-on-year in February, according a report released this week by the state statistical service.

Specifically, the index stood at 121.7 points during this time, down from the figure of 122.3 recorded in February of 2024.

It should be noted that 2021 serves as the base year for these comparisons, with a value of 100 points.

In comparison with the same month in 2024, certain sectors recorded increases.

The Cyprus Composite Leading Economic Index (CCLEI), compiled by the Economics Research Centre (CypERC) of the University of Cyprus, recorded a year-on-year increase of 2.9 per cent in February 2025.

This follows year-on-year increases of 2.5 per cent in January 2025 and 2.0 per cent in December 2024, according to the most recently revised data.

According to the research centre, the sustained growth of the CCLEI in February 2025 was driven by all its domestic and international economic components.

Specifically, the index benefitted from the positive year-on-year changes in property sales contracts, tourist arrivals, and the total value of transactions using Cypriot credit cards.

As the Mediterranean’s rising star, Cyprus continues to attract investors looking for high-yield property opportunities.  

With a booming economy, a favourable tax regime, and a strategic location bridging Europe, the Middle East, and Africa, Cyprus is fast becoming a top-tier investment destination.  

Whether for residential, commercial, or mixed-use properties, the island offers compelling reasons for investors to take notice.