Cyprus is moving ahead with the European Tourism Agenda 2030 through a series of targeted actions and incentives, Deputy Minister of Tourism Costas Koumis said at the Cyprus Tourist Enterprises (Stek) tourism conference in Nicosia, noting that the government has made the sector’s transition “to the new era” a clear priority.

Speaking at the event, Koumis said the Deputy Ministry is already implementing the EU agenda’s five pillars, the green and digital transitions, resilience, inclusion, skills development and updated regulation, and is doing so “with respect for business and local communities”.

Moreover, he said the government is closely observing developments in the EU and “everything that affects or may affect positively or negatively the present and future of tourism in our country”, stressing that sustainable development remains “the only way forward”.

As part of this approach, he pointed to the use of the Recovery and Resilience Mechanism (RRP), noting that funds already channelled to tourism businesses and local communities are expected to exceed €20 million.

This support, he said, extends from rural and mountainous areas to hotel businesses, as well as to local products and a new digital application.

According to Koumis, these actions show that the Government “did not invest only in achieving numerical performance” but continues to invest “in the qualitative characteristics of the destination Cyprus”.

Above all, he added, the government has invested “in local communities, in the visitor, in the person, but also in business”.

Looking ahead to 2026, Koumis said the Deputy Ministry’s budget includes appropriations to revise the Strategic Environmental Impact Assessment (SEIA) for the national tourism strategy, alongside a new study designed to propose a modern development and management model based on sustainability principles.

The intention, he said, is for this work to produce “a set of recommendations and guidelines” for adoption by the industry. Additional funding has been allocated for research on rural and nature tourism.

At the same time, he warned that the sector continues to operate under significant uncertainty, while the country’s assumption of the EU Council Presidency, “in just a few days”, as he said, represents another major challenge with a strong tourism dimension.

However, the greatest challenge remains climate change and its impacts if action is not taken.

Consequently, Koumis said the institutional responsibility of all those in the tourism ecosystem is to design and implement policies “with a horizon of the coming decades”, aiming at balanced, sustainable development “with absolute respect for the environment and natural resources”.

In a message delivered on his behalf by Stek secretary Sokrates Solomides, Stek president Akis Vavlitis told participants that sustainable tourism “is the only path that ensures the resilience of our destination, the cohesion of our society and the credibility of our country internationally”.

Yesterday’s model, which was based on quantity, “cannot respond to today’s challenges”, he said, adding that sustainability is “the tool with which we define who we want to be as a destination and how we will survive”.

Vavlitis stressed the need for a coordinated national strategy with a clear timetable and measurable results, supported by grant schemes for energy transition, circular economy and digital transformation. He also referred to the need for skilled human resources, clean cities and beaches, reduced pollution and care for the local environment and residents’ quality of life.

Stek, he said, is contributing with policy proposals, financing suggestions and awareness initiatives for responsible consumption and waste reduction.

“Cyprus’ tourism has proven many times that it can adapt, recover and innovate,” he said, adding that all sides must now move “in the same direction, with boldness, understanding and a shared vision”.

Sustainability, he noted, “is not a slogan. It is a responsibility, an opportunity and an obligation”.

Eurobank’s Head of Commercial Banking, Antonis Nikolaides, opened the conference by saying the tourism industry has been “the backbone of the Cypriot economy” for more than half a century, consistently increasing its share of GDP due to its resilience.

He said the bank is ready to finance “sustainable proposals that improve businesses and product quality”, noting the sector’s strong management teams, low non-performing loans and continuous upgrading.

Competition from Egypt and Turkey, he added, makes modernisation essential “so that they are competitive in both the quality of their services and their pricing”.

Looking at wider trends, Google’s account manager Thanos Papageorgiou said tourism, like AI, “never stands still”, pointing to projections of more than 2.4 billion trips by 2040.

He noted that five markets will represent 42 per cent of global travellers, while the “New Middle East” is emerging as a top destination, including Cyprus.

He also pointed to the steady rise in Google travel searches, exceeding five trillion annually, with one in five carrying commercial intent.

Hermes Airports Director of Aviation Development, Marketing and Communication Maria Kouroupi referred to the sector’s environmental commitments and the EU’s growing tendency to impose higher tax burdens on air transport, a trend that increases travel costs.

She also emphasised the need for collective work to upgrade Cyprus’ tourism product.

Tourism officer Constantinos Tsiappas presented data on arrivals and visitor satisfaction, noting that boosting satisfaction levels is a strategic objective for the Deputy Ministry.

During a panel on financing and incentives, former EIB  Group vice president Kyriakos Kakouris said that 35 per cent of a €150m bank programme channelled into the economy had gone to the tourism sector.

The programme contributed 0.4 per cent to GDP in 2016, although cooperation later halted due to the pandemic and high interest rates.

It can only function with cooperation, he said, adding that “in the face of threats we must unite”. He also underlined the need to identify priority projects first “and then see what is available for financing”.

Eurobank’s Andreas Papadopoulos added that banks will play a decisive role in supporting hotels in the coming years through financing that strengthens competitiveness, energy upgrades and climate resilience.

Targeted lending and risk assessment, Papadopoulos said, can help hotels adapt to new requirements.