Tourism in Cyprus is experiencing a significant boost, with a 6.9 per cent increase in arrivals in July 2025 compared to the previous year. A total of 589,116 visitors made their way to the island, up from 551,229 in July 2024, according to the state statistical service.
In the first seven months of 2025, the total number of tourists reached 2,432,129—an impressive rise of 10.4 per cent from 2,203,704 in the same timeframe last year. The United Kingdom continues to be the dominant source of visitors, accounting for 32.2 per cent of total arrivals, equating to 189,730 tourists. Following the UK, Israel contributed 76,557 visitors, representing 13 per cent of the total, while Poland accounted for 7.4 per cent with 43,713 arrivals.
While tourism flourishes, the business landscape in Cyprus is facing stark challenges. In the second quarter of 2025, new business registrations plummeted by 8.4 per cent, placing Cyprus among the weakest performers in the European Union. Only Denmark and Germany reported sharper declines. This drop coincided with a troubling rise in bankruptcies, which surged by 66.8 per cent, marking the second-highest increase in the EU, just behind Latvia.
Despite these setbacks in business registrations, Cyprus is seeing a positive GDP growth rate of 3.3 per cent for the second quarter of 2025 compared to the same period in 2024. The state statistical service attributes this growth primarily to the wholesale and retail trade, information and communication sectors, and the hotel and restaurant industry.
In the financial sector, the Bank of Cyprus (BoC) has been recognised as the best bank in Cyprus for the tenth consecutive year by Euromoney, a prestigious international magazine. The award reflects the bank’s achievements in 2024, including a shareholder distribution of €241 million, nearly double that of 2023. The BoC has also revamped its distribution policy, aiming for a payout ratio of 50 to 70 per cent starting in 2025.
In a move aimed at enhancing the digital marketplace, the European Commission has initiated a public consultation regarding the Digital Markets Act (DMA). This consultation, announced by the Cyprus Chamber of Commerce and Industry (Keve), seeks to gather opinions on the DMA’s effectiveness in promoting fair competition in digital markets across the EU.
On the innovation front, the Research and Innovation Foundation (RIF) has launched a new funding opportunity for Cypriot businesses under the programme ‘Enhancing Business Capacity for New Product Development’. Eligible companies with at least 10 full-time employees can apply for funding of up to €30,000 per project, with a total budget of €580,000 allocated for this initiative.
Amidst these economic developments, Larnaca has officially launched a €19 million sustainable mobility project, following a successful resolution of prior legal challenges regarding the tender. The project, aimed at enhancing urban mobility, is set to begin construction in September 2025 and is expected to be completed by January 2027. Funded through the Recovery and Resilience Plan, the initiative is part of Larnaca’s Sustainable Urban Mobility Plan (SUMP).
