Filenews 18 January 2026 - by Giorgos Koukounis
Tourism has been and remains one of the most stable and productive pillars of the Cypriot economy. The course of recent years confirms that this is not just a sector of seasonal activity, but an ecosystem that directly affects employment, public revenues, infrastructure and the overall development footprint of the country.
Last year recorded a spectacular performance in arrivals and revenues, while 2026 is not a simple continuation of the rise, but a year of qualitative consolidation and upgrading of our tourism product.
The data so far for the summer season show a clear and measurable dynamic. Overall occupancy appears increased compared to the same period last year, which translates into more overnight stays and more stable demand. The crucial thing, however, is not only the volume. It is the quality of this demand and the market's ability to absorb higher prices, without negatively affecting the competitiveness of Cyprus as a destination.
The revenue side acquires particular importance. The impressive increase recorded in the previous year, compared to 2024, is not necessary, nor realistic, to be repeated at the same pace.
On the contrary, 2026 seems to be creating conditions for more sustainable, but equally positive growth, with double-digit revenue growth.
The key mechanism behind this development is the rise in the average daily revenue per room. The fact that the market is "withstanding" higher prices, without reducing demand, is an indication that the Cypriot tourism product is substantially upgraded. It is a transition from the logic of "more" to the logic of "better", i.e. from the increase in arrivals to the increase in value per visitor.
This dynamic is also linked to the composition of the markets that support tourism. Germany is emerging as a strong driver of growth, flanked by the United Kingdom, Central Europe, Israel and the Scandinavian countries. These are markets with purchasing power, increased demands and commitment to the quality of the experience, elements that favour a destination that invests in consistency, safety and overall image.
The role of stability
Cyprus has a set of advantages that rarely coexist so concentrated in one destination. Sun almost all year round, clean seas, beaches with blue flags, mountain destinations in short distances, rich historical and cultural heritage, but also gastronomy that balances between tradition and modern trends. The short distances allow the visitor to combine experiences in a few days, which enhances the sense of "added value" of the trip.
In an environment of international uncertainty, the parameter of institutional and political stability is also crucial. Cyprus, as a member state of the European Union and in view of strengthening its international role in the region, emerges as a safe, reliable and familiar destination for the European traveller. European identity, a sense of security and predictability now function as competitive advantages equal to climate or natural beauty.
The positive image also creates increased responsibilities. 2025 highlighted, albeit as a warning, the possibility of over-tourism and the pressures that can be exerted on infrastructure and services. 2026 must be a year of strategic maturity, to capitalize on demand without wearing out the product.
Hoteliers are invited to continue to invest in quality, human resources and sustainability, so that higher prices are accompanied by a corresponding experience. The Deputy Ministry of Tourism must insist on a long-term policy of extending the period and differentiating the product, beyond the traditional triptych "sun-sea-hotel".
Finally, local authorities have a decisive role in the overall image, cleanliness, traffic functionality, signage, public transport, but also the protection of the natural and cultural environment.
At the same time, the green transition cannot be a complementary, but a central choice. The energy upgrade of accommodation, the strengthening of sustainable transport, waste management and the rational use of resources are now conditions for competitiveness, not just "good practices".
Ending
2026 is not just a year of positive expectations; It is a test of strategic maturity. If the existing momentum is exploited wisely, with coordination and vision, Cypriot tourism can definitively move from the recovery phase to that of sustainable overperformance, for the benefit of the economy and society as a whole.
* Lawyer in Larnaca
