Cyprus’ tourism sector posted a record year in 2025, with its share of GDP rising to 14 per cent from 13.1 per cent, emphasising its role as a core contributor to economic growth, Deputy Tourism Minister Kostas Koumis said on Thursday.

Presenting the Deputy Ministry’s annual report, Koumis said the industry had once again proven its resilience despite “continuous challenges and an ever-changing international environment”, reinforcing its position as a key driver of economic growth.

Tourist arrivals surpassed 4.5 million for the first time, marking a 12.2 per cent increase year-on-year and a 41.6 per cent rise over three years.

Revenues also rose sharply, rising 15.3 per cent year-on-year in the January–November period and 51.1 per cent over three years.

In absolute terms, total revenues for 2023 – 2025 reached €9.9 billion, capping what Koumis described as a historic cycle for the sector.

Spending indicators also improved. Average per visitor expenditure rose to €822, from €799 a year earlier, an increase of 2.9 per cent, while daily spending climbed 7.2 per cent to €99.5.

Although the average length of stay declined 4 per cent to 8.27 days, overnight stays are expected to reach 18.5m, up 3.3 per cent from 2024, according to preliminary estimates.

Koumis said “tourism’s performance helped underpin overall economic growth, which is estimated at 3.75 per cent in 2025, well above the Eurozone average of 1.5 per cent.”

Looking back at the 2022 – 2025 period, Koumis said “the primary objective had been to restore tourism to high performance following the losses of 2022.”

With that target achieved, he added, “the time has come for the tourism ecosystem to turn the page”, placing greater weight on quality and the overall visitor experience.

In 2025, 13 incentive schemes were in operation, four of them financed through the recovery and resilience plan (RRP), with total allocations expected to approach €20m.

Among them, 153 projects aimed at revitalising rural, mountainous, coastal and remote areas are under way, backed by up to €7m.

In addition, 48 businesses secured approvals worth €6.9m for upgrading accommodation in such areas.

Elsewhere, €1.3m waswas allocated to support upgrades to restaurants and traditional product shops in 2025, while seven health and wellness tourism projects, totalling €1.2m, were approved.

Parallel schemes supported digital transition, conference and incentive travel, sports events, diving certification, beach upgrades, traditional craft workshops and Christmas village initiatives.

The Deputy Minister said the update of the National Tourism Strategy 2035 has been completed, while the tour guide school has reopened after a seven-year pause. Work has also begun, in cooperation with the Cyprus Tourism Organisation, on a comprehensive digital application designed to enhance the visitor experience.

Particular emphasis was placed on specialised segments. A 3D mapping of diving sites and a dedicated study on diving tourism have been completed, with further studies under way on health tourism and nature and rural tourism.

Agritourism accommodation recorded more than 90,000 arrivals in 2025, up 3 per cent year-on-year and 40.9 per cent over three years.

Cruise tourism, meanwhile, expanded, with passenger numbers rising 104 per cent to 278,000, compared with 136,000 in 2024.

Turning to 2026, Koumis described the Cyprus Presidency EU Council as a significant year for the sector.

More than 30,000 conference participants are expected, with the Deputy Ministry responsible for coordinating hospitality, excursions and around 250 conferences.

As presiding country, Cyprus will also submit Council Conclusions on tourism in May 2026, drawing on the Transition Pathway for Tourism and the European Agenda for Tourism 2030.

On the legislative front, a bill regulating diving tourism has been tabled in parliament, alongside draft legislation governing the establishment and operation of catering and entertainment venues.

Finally, Memoranda of Understanding (MoU) was signed with Israel and Saudi Arabia.