The Golden Era of Cypriot Tourism

Text: Charalambos Nikoloulos

In an era of challenges and intense competition, Cyprus is leveraging its comparative advantages and steadily strengthening its position on the global tourism map.

Tourism in Cyprus is experiencing one of the best periods in its history, with the years 2023-2024 recording impressive performance. In fact, this year is expected to emerge as a golden one – both in terms of arrival numbers and revenue. And all this is happening amid a backdrop of global unrest, as well as growing competition from other popular Mediterranean destinations.

The recovery of the sector has been remarkable. From 3.2 million arrivals in 2022, the number rose to 3.8 million in 2023 and approached 4 million in 2024 – a growth of over 25 percent in just two years. Even more impressive are the revenues: from €2.2 billion during the years 2017-2019, they exceeded €3 billion in 2023 and reached €3.2 billion in 2024. This marks a record, representing 13 percent of the country’s GDP. If 2025 meets projections and arrivals surpass 4 million, it will mark a historic double record!

The reasons for the rise 

The remarkable progress and resilience of the tourism experience offered by Cyprus are attributed to several factors. The island’s geographical location –between East and West– its natural beauty, the idyllic coastline, the cool Troodos mountains with their picturesque villages, the mild climate from spring to autumn, the hospitality of the locals, its rich gastronomy, local products, and wines, all remain timeless assets and comparative advantages.

However, none of this would have been possible without the backing of the government and a dynamic, innovative business sector that is continuously evolving. Key investments, such as the development of new terminals at Larnaka and Pafos Αirports, the expansion of the airline network, and the upgrading and expansion of hotels and luxury resorts, have been instrumental. Additionally, the diversification of experiences –ranging from entertainment (new casinos, fine dining restaurants, golf courses) to cultural and recreational offerings (festivals, heritage sites)– has significantly strengthened the tourism product.

Furthermore, the island has become an attractive hub for startups, digital nomads, and modern entrepreneurs, offering competitive prices and an ideal quality-cost ratio in hospitality and dining. Given these aspects, it’s clear why an increasing number of people are selecting it as their preferred destination.

Resistance to time and crises

Certainly, the successes of Cypriot tourism have not been without challenges, and the future is not without uncertainties. Climate change poses a significant threat to the island, with scientific projections suggesting a temperature increase of up to 4°C by the end of the 21st century, peaking around 2070. However, the impact of climate change may have positive effects during the winter months, while spring –particularly after mid-April– is expected to resemble early summer.

In any case, Cyprus has consistently proven its resilience and adaptability in the face of challenges – qualities that appear to be ingrained in its DNA. This is how it weathered the economic crisis of 2013 and navigated the loss of thousands of Russian tourists in recent years, following the outbreak of the war in Ukraine.

While the Russian share of arrivals has decreased, estimates indicate that approximately 100,000 visitors continue to come from Russia each year. Currently, the primary markets for Cypriot tourism are the United Kingdom –which accounts for about a third of all tourists– along with Germany, Greece, Romania, France, Norway, Saudi Arabia, and, of course, Israel. With 10 percent of total arrivals, Israel has become the second-largest market. The proximity, long-standing friendly relations between the two nations, and the growing business synergies in the hospitality sector help explain the steady increase in arrivals from its neighbour.

The challenges of the next day

Ongoing positive developments inspire all stakeholders to look toward even brighter prospects and set more ambitious goals. To realise this vision, the government, relevant organisations, and businesses are prioritising the extension of the tourist season beyond the traditional summer peak. Winter tourism, agritourism, ecotourism, sports and religious tourism hold significant growth potential. Additionally, there is a strategic push to target new markets, reducing reliance on Europe. India, Saudi Arabia, and the United Arab Emirates are considered particularly promising opportunities. Simultaneously, the philosophy of sustainability is progressively shaping the tourism landscape in Cyprus. Environmentally conscious accommodations and businesses that prioritise reducing their carbon footprint are becoming the preferred choice for today’s mindful travellers. This trend represents a broader challenge for the future of tourism, extending beyond Cyprus to the global stage.

The leaders of Cypriot tourism are not simply reacting to developments; they have carefully mapped out their own strategic path. Their focus is on a development plan that aims to enhance services while maintaining a balance between tourism growth and environmental/social responsibility. At the same time, the plan seeks to preserve the island’s values and heritage. According to the National Tourism Strategy 2030, the vision is one of sustainable and ethical development that simultaneously boosts the economy, society, and the environment. The ultimate aim is for future visitors and residents alike to experience the island through genuine, exceptional, and unforgettable moments.