Cyprus is making significant strides in implementing the European Tourism Agenda 2030, as outlined by Deputy Minister of Tourism Costas Koumis during the Cyprus Tourist Enterprises (Stek) conference in Nicosia. The government has prioritised a transition to a more sustainable and modern tourism sector, ensuring that targeted actions and incentives are at the forefront of its agenda.
- He also highlighted the competitive pressures from regional rivals like Egypt and Turkey, stressing the necessity for modernisation to maintain competitiveness in service quality and pricing.
European tourism: Implementing Key Pillars of the Agenda
At the conference, Koumis highlighted that the Deputy Ministry is actively working on the EU agenda’s five foundational pillars: green and digital transitions, resilience, inclusion, and skills development. He emphasised a commitment to respecting both business interests and local communities throughout this process.
Focus on Sustainable Development
In his address, Koumis pointed out that the government is closely monitoring both positive and negative developments within the EU that could impact tourism in Cyprus. He firmly stated that sustainable development remains the only viable path forward for the industry. “We must invest in the qualitative characteristics of Cyprus as a destination,” he remarked, underscoring the need for a holistic approach to tourism development.
Financial Support for Tourism Initiatives
As part of its commitment to the European Tourism Agenda, Cyprus has leveraged the Recovery and Resilience Mechanism (RRP) to provide substantial financial support to tourism businesses and local communities. Koumis revealed that funds allocated for this purpose are projected to exceed €20 million. This financial assistance spans various sectors, including rural and mountainous areas, hotel businesses, and local product promotions, alongside the development of a new digital application.
Future Plans and Environmental Considerations
Looking ahead, Koumis shared that the Deputy Ministry’s budget for 2026 includes provisions for revising the Strategic Environmental Impact Assessment (SEIA) related to the national tourism strategy. A new study will also be undertaken to propose modern development and management models centred around sustainability principles. The aim is to formulate a set of recommendations and guidelines for the industry’s adoption.
However, he cautioned that the tourism sector continues to face significant uncertainties, particularly with Cyprus soon assuming the EU Council Presidency. He described this transition as a major challenge that intersects with tourism interests.
Climate Change: An Ongoing Challenge
Koumis underscored that climate change poses the greatest challenge to the tourism sector. He articulated the need for all stakeholders within the tourism ecosystem to collaborate in designing and implementing policies that focus on balanced and sustainable development, while maintaining respect for the environment and natural resources.
Voices from the Tourism Sector
During his message conveyed by Stek secretary Sokrates Solomides, Stek president Akis Vavlitis stated that sustainable tourism is imperative for the resilience of the destination, societal cohesion, and international credibility. He remarked that the outdated model focused on quantity is inadequate to meet contemporary challenges. “Sustainability is the tool with which we define who we want to be as a destination and how we will survive,” he said.
Vavlitis called for a coordinated national strategy with clear timelines and measurable outcomes, advocating for grant schemes that support energy transition, circular economy practices, and digital transformation. He also highlighted the importance of skilled human resources, clean cities and beaches, reduced pollution, and improved quality of life for residents.
Financial Institutions Supporting Tourism Growth
Eurobank’s Head of Commercial Banking, Antonis Nikolaides, opened the conference by noting that the tourism industry has been the backbone of the Cypriot economy for over fifty years. He remarked on the sector’s resilience, which has consistently increased its contribution to GDP. Nikolaides affirmed the bank’s readiness to support sustainable proposals aimed at enhancing business quality.
He also highlighted the competitive pressures from regional rivals like Egypt and Turkey, stressing the necessity for modernisation to maintain competitiveness in service quality and pricing.
Emerging Trends and Future Projections
Thanos Papageorgiou, an account manager at Google, discussed broader trends in tourism, likening its evolution to that of artificial intelligence. He presented projections indicating over 2.4 billion trips globally by 2040, with significant market changes impacting Cyprus as an emerging destination in the so-called “New Middle East.” Papageorgiou noted a steady rise in Google travel searches, exceeding five trillion annually, with one in five searches carrying commercial intent.
Maria Kouroupi, Director of Aviation Development, Marketing and Communication at Hermes Airports, addressed the sector’s environmental commitments while acknowledging the EU’s increasing tax burdens on air travel, which in turn raise travel costs. She emphasised the need for collective efforts to enhance the tourism product in Cyprus.
Monitoring Visitor Satisfaction
Tourism officer Constantinos Tsiappas presented data on visitor arrivals and satisfaction, highlighting the importance of boosting satisfaction levels as a strategic goal for the Deputy Ministry. He stressed that understanding and responding to visitor needs is crucial for the future of tourism in Cyprus.
Collaboration for Future Success
During a panel focused on financing and incentives, former EIB Group vice president Kyriakos Kakouris indicated that 35 per cent of a €150 million bank programme aimed at stimulating the economy had been channelled into tourism. He noted that the programme had previously contributed 0.4 per cent to GDP in 2016, though cooperation waned due to the pandemic and high interest rates.
Kakouris asserted that success hinges on collaboration, urging stakeholders to unite in the face of challenges. He also emphasised the necessity of identifying priority projects before exploring financing options.
Eurobank’s Andreas Papadopoulos echoed these sentiments, stating that banks will play a vital role in supporting hotels through targeted financing that enhances competitiveness and promotes energy upgrades. He concluded that a proactive approach to risk assessment will enable hotels to adapt effectively to new demands.
