Cyprus Business Now: Cyta, tourism, CBC, unemployment, BoC, pensions, energy

The Cyta board of directors on Thursday presented its report covering its February 2024 to July 2026 term, describing the period as one marked by major transformation, strategic reforms and significant investments aimed at strengthening the organisation’s role in Cyprus’ digital future. The board reported that its work focused on reinforcing Cyta’s position as a reliable connectivity provider while preparing the organisation to play a broader role in the country’s digital development. It said that investments in digital transformation, telecommunications infrastructure and technology services laid stronger foundations for improved customer services, created additional opportunities for the economy and supported Cyprus’ wider digital progress. One of the most significant developments during the board’s tenure was the expansion of the institutional and legislative framework governing Cyta’s operations. Cyprus’ tourism revenue fell by 4.8 per cent in May 2026 as the war in Iran depressed visitor arrivals, particularly from the island’s primary tourist market, despite average spending per visitor remaining broadly unchanged. Specifically, revenue from tourism reached €355.2 million in May 2026, compared with €373.3 million in the same month of 2025, according to figures released on Thursday by the Cyprus Statistical Service (Cystat). The figures come after tourist arrivals in May also declined, largely due to the continuing impact of regional instability, particularly the conflict in the Middle East, which has affected the sector during 2026. For the January to May 2026 period, tourism revenue is estimated at €798.2 million, compared with €955.8 million during the corresponding period of 2025, representing a 16.5 per cent decrease. Cyprus recorded one of the lowest unemployment rates in the European Union in June 2026, with joblessness on the island falling to 3 per cent, according to figures published by Eurostat on Thursday. Data released by the EU statistical office revealed that the seasonally adjusted jobless rate in Cyprus edged down from 3.1 per cent in May 2026 and 3.2 per cent in April 2026. The 3 per cent rate placed Cyprus joint lowest among all EU member states alongside Bulgaria, contrasting sharply with the broader EU average. The total number of unemployed persons in Cyprus stood at approximately 16,000 in June 2026, holding firm at the same level recorded in May 2026 and down from 17,000 in April 2026. For young workers under the age of 25, the youth unemployment rate in Cyprus remained stable at 7.8 per cent in June 2026, unchanged from the previous month. The Bank of Cyprus (BoC) has been named Cyprus’ Best Digital Bank at the Euromoney Awards for Excellence 2026, recognising the lender’s digital achievements during the evaluation period from January 1, 2025 to December 31, 2025. The bank said the award reflects a series of major digital innovations introduced during 2025, including the integration of Fleksy, Cyprus’ first buy now, pay later service, into its digital banking platform. It also highlighted significant upgrades to its Joey youth banking ecosystem, including savings and goals features and the ability for users to transfer money between Joey accounts. Other developments included the expansion of QuickAccount to support sterling and US dollar accounts, as well as the launch of what the bank described as the market’s first digital housing loan. The Bank of Cyprus added that its digital strategy has been reflected in strong customer adoption, with active digital users exceeding 500,000. Tourism revenue figures for May and the first five months of 2026 confirmed that Cyprus tourism has returned to a stable recovery path, Deputy Minister of Tourism Kostas Koumis said on Thursday, following the release of data by the Statistical Service. In a written statement sent to the Cyprus News Agency (CNA), Koumis said the 4.8 per cent decline in tourism revenue in May compared with 2025 was not excessive, while compared with 2024 the sector recorded growth of 14.4 per cent. “The statistical measurement confirms that the tourism sector is without doubt now on a stable path, and proves that the coordinated and targeted actions of the government, always in cooperation with our country’s tourism industry, had a positive impact on the sector,” Koumis said. Regarding the first five months of the year, the deputy minister said the overall revenue picture had improved by 7.4 percentage points compared with the first four months, which he said reflected the gradual and now established recovery of the sector. Central Bank of Cyprus (CBC) governor Christodoulos Patsalides has stated that inflation risks are gradually increasing because of persistently high energy prices, while insisting there is still no evidence to justify an immediate interest rate increase. In an interview with specialist financial news wire Econostream, Patsalides said the European Central Bank’s (ECB) decision last week to leave rates unchanged was appropriate because inflation remains broadly in line with expectations and second-round effects have yet to emerge. “There was no evidence that would have supported a rate hike,” Patsalides said. “Second-round effects are not evident, expectations are anchored and inflation is more or less in line with its expected path,” he added, while warning that risks remain tilted upwards because of developments in energy markets. Patsalides said the longer geopolitical tensions persist, the greater the possibility that higher oil prices will spread through the economy, eventually feeding into broader inflation. Cyprus tourism stakeholders moved to strengthen cooperation with local authorities earlier this week as the sector continues to face a more challenging summer season. Specifically, the Paphos Municipality met with the Cyprus Hoteliers Association (Pasyxe) on Monday, reaffirming their partnership while new data showed arrivals and hotel occupancy remained below last year’s record levels. Indeed, acting mayor of Paphos Angelos Onisiforou and newly elected Pasyxe president Yiannos Pantazis confirmed their commitment to closer cooperation during a meeting at Paphos Town Hall. The meeting focused on joint efforts to support tourism development, improve services and strengthen Paphos’ tourism offering, according to a statement from the municipality. Onisiforou congratulated Pantazis on his election as president of Pasyxe and highlighted the long-standing relationship between the municipality and the hotel sector. Cyprus residents faced continued difficulty affording a week-long annual holiday in 2025, with Eurostat data released on Thursday showing that 27.6 per cent of people aged 16 and over could not afford a one-week break away from home. The figure placed Cyprus slightly above the European Union average, where 27.5 per cent of the population in the same age group were unable to afford a week’s annual holiday last year. The share in Cyprus was significantly lower than in some southern European countries, with Greece recording the second-highest proportion in the EU at 46.6 per cent, while Romania topped the ranking with 61.4 per cent. Bulgaria and Hungary followed, both reporting that 39.1 per cent of people were unable to afford a one-week holiday away from home in 2025. Cyprus also compared favourably with neighbouring Turkey, where 50.5 per cent of people were unable to afford a week-long holiday, according to Eurostat figures. State Aid Control Commissioner Stella Michaelidou has approved an expanded research and innovation support measure, allowing the continuation of the Restart 2016–2020 programmes with an increased budget and the addition of a new cybersecurity innovation initiative. The measure, titled “Restart 2016–2020 Programmes for Research, Technological Development and Innovation of the Research and Innovation Foundation”, was approved following amendments to the existing scheme. In an announcement issued this week, the Office of the State Aid Control Commissioner said the measure continues the same existing programme, which had already been deemed compatible with state aid rules through Michaelidou’s decision No. 471 dated July 18, 2025. The updated scheme includes several amendments, including the addition of the Fast Track Innovation (FTI) programme for the rapid development of innovative products and services in the cybersecurity sector. The bill to reform Cyprus’ pension system is to enter its final drafting stage next week after Labour Minister Marinos Mousiouttas meets Finance Minister Makis Keravnos next Wednesday to settle the remaining financial aspects before the bill is released for public consultation. On Thursday, Mousiouttas said the draft bill should be completed by the end of next week, after which it will be presented to trade unions, employers’ organisations and political parties before reaching the House. The government is aiming to submit the bill when MPs return from their summer recess in September, with the first phase of the reforms due to take effect on January 1 of next year. Mousiouttas said discussions with the finance ministry would determine the final framework, after which the proposals would also be presented to President Nikos Christodoulides. Once the bill is finalised, it will be circulated to trade unions and employers’ organisations for initial consultation before being opened to the public. Shareholders of The Mall of Engomi and The Mall of Cyprus have ratified their 2025 financial statements and re-elected two directors at their annual general meeting held on July 30, 2026. According to an announcement on Thursday, The Mall of Engomi (ME) Plc and The Mall of Cyprus (MC) Plc each approved five resolutions covering accounts, auditors, directorships and remuneration in closely aligned proceedings. Audited accounts for the year ended 31 December 2025, together with the reports of the directors and auditors thereon, were received and approved at both meetings, marking formal shareholder endorsement of the companies’ financial performance for the year. Demetra Holdings Plc purchased 4,440 of its own shares on July 29, as part of an ongoing share buyback programme executed through The Cyprus Investment & Securities Corporation Ltd. The investment company announced the transaction on Thursday, in accordance with the regulatory frameworks set out by the Cyprus Stock Exchange and the Cyprus Securities and Exchange Commission. The share repurchases were carried out pursuant to the authorisation granted by shareholders during the company’s annual general meeting held on June 30, 2026. Delegations from the transmission system operator and the energy markets association discussed efforts to reduce electricity costs for households and businesses, and ways to make the new competitive energy market more efficient, both organisations said on Thursday. According to both sides, the energy markets association “presented proposals and positions on issues which fall within the competence” of the transmission system operator, while an “exchange of views” also took place “on practices which can contribute to the more efficient functioning of the market and the de-escalation of electricity costs”. Cyprus’ energy market opened up to private companies for the first time in October last year. At the time, the energy regulatory authority (Cera) said that the move would “mark a new era in the electricity sector”, with it hoped that in time, the island will have “a fully free competitive market, where all parties, producers, suppliers, and end customers are free to decide among themselves … how to manage and pay for the electricity they produce”. The cabinet on Thursday approved €1.17 million in compensation for farmers whose crops were damaged by extreme weather between 2025 and 2026. According to the agriculture ministry, the scheme covers a range of crops, including avocados, citrus fruits, olives and potatoes. It also includes compensation for damage to fruit and agricultural infrastructure caused by fires or storms. The ministry said around 610 farmers are expected to benefit from the scheme, with payments to be made through the Agricultural Production and Insurance Fund under the Agricultural Production Risk Management Law.