The economy of the Famagusta district is coming under growing strain from the fallout of developments in the Middle East, with Paralimni-Deryneia mayor Giorgos Nikolettos warning that the new tourist season will depend in part on how quickly Cyprus can restore confidence in key foreign markets.

In a written statement, Nikolettos welcomed the government’s recently announced support measures, but said additional steps could still be taken so that assistance is applied more broadly across the tourism industry. 

He said the district’s economy was being “severely tested” by the regional situation, adding that the municipality was in constant contact with hoteliers, Ayia Napa municipality, Pasyxe, Etap Famagusta, airlines and tour agencies in an effort to push for targeted interventions at decision-making centres. 

Cyprus brought 95 students from lyceums and technical schools in Limassol and Paphos closer to the shipping industry on Tuesday, as the Deputy Ministry of Shipping held the educational day ‘Getting to know the world of Shipping’ at the Bernhard Schulte Shipmanagement Maritime Education Centre in Limassol Marina.

Held for the third consecutive year in cooperation with the counselling and vocational education service of the ministry of education, sports and youth, the event aimed to give students a first-hand look at a sector that remains one of the island’s most important industries, while also pointing to the range of career opportunities it offers.

The students were introduced to shipping professions and future career prospects, while also learning more about the structure and operation of shipping companies.

At the same time, they were given an overview of modern branches of the blue economy, an area gaining increasing attention as the maritime sector broadens beyond its traditional activities.

Hotel operators were awaiting details on Thursday of a government wage-subsidy scheme, with the industry looking to the labour ministry for a plan due to be announced on April 2 as Cyprus tries to shield tourism from the fallout of the Middle East war.

The latest round of contacts came as government officials, hotel representatives and unions stepped up consultations over the past 24 hours in a bid to shape a proposal acceptable to all sides.

Trade unions, which met Labour Minister Yiannis Panayiotou in the presence of director of labour relations Andis Apostolou and the ministry’s director general Stelios Chimonas, said any final scheme must be built around the full protection of workers’ rights, the safeguarding of earnings and the continuation of employment.

They also insisted on the equal treatment of all workers, warning against practices that could lead to the substitution or exclusion of Cypriot and other EU nationals through the hiring of third-country workers.

The Paphos regional tourism board (Etap) has announced that it is participating as a partner in the European Erasmus+ programme I-DEMO, aimed at strengthening the district’s position as a smart tourism destination.

Specifically, the board said that it is taking part in an educational meeting held in Breda, Netherlands, coordinated by Breda University, from March 30 to April 2, 2026.

According to the announcement, partners will be trained in a range of digital techniques and tools, while also having the opportunity to examine in practice how gamification is created and how it contributes to the overall tourism experience.

The project is being implemented with the participation of nine partners from seven European countries and has as its main objective the strengthening of digital transformation in tourism through the development of skills, digital readiness, and resilience.

The Tax Department has announced the implementation of a zero VAT rate on specific categories of meat and fish, following a decision by the Cabinet.

The department stated that the measure is based on a decree published in the Official Gazette, which amends the Value Added Tax (VAT) Law to apply a zero rate on deliveries of these products from April 6 to September 30, 2026.

The reduced rate applies to fresh, chilled, or frozen meats, including beef, pork, and sheep or goat meat.

It also covers edible offal of cattle, pigs, sheep, and goats, as well as meat and edible offal of poultry.

In addition, the measure includes meat and edible offal of rabbits and hares.

The House finance committee has examined significant legal and substantive changes to a proposed law concerning the financial commissioner and procedures for complaints and foreclosures, with the binding nature of the commissioner’s decisions at the centre of debate.

The discussion focused on amendments presented by the Finance Ministry, which stated that most changes involve technical legal corrections and revised definitions, alongside more substantive interventions relating primarily to timeframes.

Among the proposed changes, the deadline for submitting an appeal to the commissioner after receiving notification is extended from 21 to 30 days, while the period for the parties to seek a resolution is increased from 15 to 30 days.

Moreover, a 60-day protection period from foreclosure is also introduced, during which the borrower will have the option to consult an insolvency adviser.

The package of eight measures announced by the government to combat rising costs amid the ongoing conflict in the Middle East is worth €100 million, government spokesman Konstantinos Letymbiotis said on Wednesday.

“Let me remind you that measures amounting to €100m were already in place before the crisis, while in our country, inflation was almost zero. To these €100m, another €100m was added with last week’s cabinet decision,” he said.

“Various scenarios have been and are being drawn up in relation to the duration of the crisis,” he said, adding that “we must understand the importance, the value, of having solid financial foundations”.

“It goes without saying that the reason that the government is able to take these measures it has taken, but also to take additional measures if necessary, is the solid economic foundations, the fiscal capabilities, the fiscal space of the state, the community, due to the responsible economic policy which is being followed,” he said.

Europe must dismantle structural barriers and leverage cutting-edge technology to fully realise the potential of the Savings and Investment Union (SIU), according to Cyprus Securities and Exchange Commission (CySEC) Vice Chairman Panikkos Vakkou.

In an article originally featured in Eurofi magazine, Vakkou stated that for the SIU to successfully offer EU citizens broader access to capital markets and redirect savings into productive cross-border investments, the bloc must be honest about the factors currently hindering progress.

He clarified that the issue is not a lack of capital, but rather a financial system that is too difficult to navigate across borders, characterized by market fragmentation, high distribution costs, uneven product access, and compliance burdens that discourage international business.