Cyprus Business Now: CITEA, cost of living, tourist arrivals, Eurobank, AmCham

Business & economy wrap-up from the day beforeTourist arrivals to Cyprus fell by 1.7 per cent in June, according to figures released by the Cyprus Statistical Service (Cystat) on Friday, although the monthly decline was markedly smaller than the sharper contractions seen earlier this year. A total of 489,965 tourists arrived in Cyprus in June 2026, compared with 498,527 in the same month of 2025. For the January to June period, tourist arrivals reached 1,656,015, down by 10.1 per cent from 1,843,013 recorded during the corresponding period last year. The June figures indicate that while the tourism sector remains below last year’s performance, the pace of decline has moderated following a difficult spring affected by regional geopolitical uncertainty. The United Kingdom remained Cyprus’ largest tourism market, accounting for 33.0 per cent of all arrivals with 161,913 visitors. Eurobank announced on Friday that it has been named Cyprus’ best bank for 2026 by international financial publication Euromoney, while also receiving the award for best bank for large corporates at the publication’s latest excellence awards. The bank said the awards represented international recognition of its performance and strategic initiatives during 2025, a year which included the completion of the legal merger between Hellenic Bank and Eurobank Cyprus. According to the bank, the Euromoney Awards for Excellence are among the financial services industry’s most recognised international distinctions. The evaluation covered the period from January 1, 2025 to December 31, 2025. Eurobank said the awards reflected a number of developments during the year, including the completion of the merger between Hellenic Bank and Eurobank Cyprus, which resulted in the creation of Eurobank Limited, which it described as the largest banking and insurance organisation in Cyprus with total assets exceeding €28 billion. The bank also pointed to strong growth in corporate banking, saying its business lending portfolio expanded by approximately 17 per cent during 2025. Cyprus’ annual inflation rate accelerated to 4.1 per cent in June 2026, significantly outpacing both the euro area and European Union averages, according to figures released on Friday by the Cyprus Statistical Service (Cystat) and Eurostat. The figures showed that the Harmonised Index of Consumer Prices (HICP) increased by 4.1 per cent compared with June 2025, while prices rose 0.9 per cent between May and June 2026. The latest reading marks a sharp acceleration from 3.5 per cent in May, 3.0 per cent in April, 1.5 per cent in March, 0.9 per cent in February and 1.2 per cent in January. By comparison, Cyprus’ annual HICP inflation stood at just 0.5 per cent in June 2025. Eurostat reported that annual inflation in the euro area eased to 2.8 per cent in June from 3.2 per cent in May, while inflation across the European Union declined to 2.9 per cent from 3.3 per cent. A year earlier, inflation had stood at 2.0 per cent in the euro area and 2.3 per cent across the EU. Business leaders, policymakers and other stakeholders met on Friday at a roundtable organised by the American Chamber of Commerce in Cyprus (AmCham Cyprus) to discuss the country’s national artificial intelligence strategy and the steps needed to translate it into practical implementation. The event featured Chief Scientist and chair of the National AI Strategy Demetris Skourides, who addressed participants on the theme ‘Building Cyprus’s AI Future From Vision to National Framework’. According to AmCham Cyprus, the discussion focused on how Cyprus can harness artificial intelligence to drive innovation, strengthen competitiveness and support sustainable economic growth as the technology continues to reshape economies and industries worldwide. The chamber said participants examined how Cyprus could position itself at the forefront of the digital economy through a clear national vision supported by an actionable artificial intelligence framework. A central theme of the discussion was the progress of the National AI Strategy, with particular emphasis placed on moving from strategic planning to implementation. Cypriot technology companies need greater financial backing to compete abroad, while businesses across the island require faster access to funding if they are to keep pace with digital change, according to the Cyprus Information Technology Enterprises Association (CITEA). These two issues were at the centre of a meeting between a CITEA delegation and Trade Minister Michalis Damianos, where discussions focused on business digitalisation and the international expansion of Cyprus’ technology sector. CITEA called for faster and simpler procedures under digital transformation support schemes, alongside larger budgets that would allow more companies to invest in modern technologies, improve productivity and remain competitive. Demand for such assistance has already proved strong. The most recent digital scheme carried a budget of €14 million and offered grants covering 50 per cent of eligible investment, up to €50,000 per company. It opened on May 20, 2025, and closed the following day after the available amount was exhausted. Ten students in Cyprus are set to receive a significant boost to their maritime education as Safe Bulkers has officially launched its sixth annual scholarship programme. Chief executive Polys V. Hajioannou confirmed this week that the company is offering ten awards of €10,000 each for the 2026–2027 academic year to support those pursuing careers in the industry. The programme is open to Cypriot citizens and Greek citizens permanently settled in Cyprus, including students graduating from secondary schools on the island and those already studying at universities in Greece, the United Kingdom or elsewhere abroad. Successful applicants will be selected on the basis of academic performance and financial circumstances, with the scholarships intended for students planning to build a career in the maritime industry. The awards cover undergraduate and postgraduate master’s programmes in naval architecture and marine engineering, mechanical and electrical engineering, as well as electronic, computer and automation engineering. Cyprus’ tourism sector has returned to a stable trajectory despite June tourist arrivals declining by 1.7 per cent, Deputy Minister of Tourism Kostas Koumis said on Friday, following the release of the latest figures from the Cyprus Statistical Service (Cystat). The Cystat data showed that 489,965 tourists visited Cyprus in June 2026, compared with 498,527 in the same month last year. For the January to June period, tourist arrivals totalled 1,656,015, representing a decline of 10.1 per cent from 1,843,013 during the corresponding period of 2025. Commenting on the figures, Koumis said the June performance was “satisfactory under the circumstances”, arguing that it confirmed the country’s tourism industry had returned to a stable course. He added that the 1.7 per cent decline in arrivals compared with June 2025 also showed that the weaker performances recorded in March and April, which had been affected by the conflict in the Middle East, now belonged to the past. Preventing homelessness and improving access to affordable housing took centre stage in Brussels this week, as the European Parliament’s Employment and Social Affairs Committee (EMPL) examined new European Union measures against housing exclusion against the backdrop of Cyprus maintaining a lower-than-average poverty risk. The discussion focused on preventing homelessness, supporting people living in insecure housing conditions and strengthening social and affordable housing policies across the bloc. Opening the meeting, European Parliament Employment and Social Affairs Committee chair Li Andersson said homelessness extends beyond housing policy and is fundamentally linked to social inclusion, prevention and building resilient, cohesive societies. She added that while housing policy primarily falls within the competence of member states, the European Commission’s proposal demonstrates how the EU can contribute through coordination, the exchange of experience and the promotion of effective policy approaches. The debate comes as Cyprus continues to perform better than the EU average on poverty and social exclusion, although challenges remain. According to the latest Eurostat figures, 17.1 per cent of Cyprus’ population, or approximately 167,000 people, were at risk of poverty or social exclusion in 2025. An EU overhaul that would make the country of employment, rather than the country of residence, pay unemployment benefits to many cross-border workers is moving towards final approval, nearly a decade after it was first proposed. The European Parliament approved the overhaul on July 7 by 511 votes in favour, 87 against and 61 abstentions. The file must now be formally adopted by the Council, a step expected in September, according to an EPRS briefing published this week. The breakthrough came under the Cyprus Presidency, which resumed negotiations in February and secured the provisional agreement with Parliament on April 22. Cyprus Labour Minister Marinos Moushouttas said at the time that “freedom of movement is a fundamental principle of the European Union”, adding that uncertainty over social rights had made it harder for people to live and work across borders. The Cyprus Securities and Exchange Commission (CySEC) on Friday announced that it had granted an exemption from mandatory takeover offer requirements linked to a planned share buyback programme by the Cyprus Cement Public Company Ltd. The decision, approved during CySEC’s meeting on July 13, 2026, follows a request submitted by George S. Galatariotis & Sons Ltd and persons acting in concert with the company. CySEC said the exemption was granted under Article 15(1)(ib) of the Public Takeover Bids Law of 2007, as amended, removing the obligation to make a public takeover offer to shareholders of the Cyprus Cement Public Company Ltd.