Cyprus Business Now: digital conference, tourism, property, inflation, tech

Europe must move beyond regulation and become a builder, deployer and scaler of critical technologies, according to Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou. Speaking at the opening of the ‘Shaping the Next Digital Frontier’ digital conference in Nicosia on Tuesday, organised in the context of the Cyprus Presidency of the Council of the European Union, Damianou stressed that Europe could no longer afford to rely on technologies developed elsewhere and needed to compete on innovation, investment, speed and scale. “Europe cannot afford to be merely a regulator of technologies developed elsewhere,” said the deputy minister. “We must be a builder, a deployer, and a scaler of critical technologies,” he added. Europe and Cyprus must prioritise speed, connectivity and human ingenuity if they are to turn technological innovation into real-world impact in the age of artificial intelligence, according to Amazon executive Panos Panay. Speaking on Wednesday during a fireside chat at the ‘Shaping the Next Digital Frontier’ conference in Nicosia, Panay, who is currently Amazon’s senior vice president for devices, Alexa and Leo, argued that successful technology ultimately depends on making people’s lives easier rather than simply introducing novelty. The discussion, held as part of the Cyprus Presidency of the Council of the European Union, was moderated by Republic of Cyprus chief scientist and Research and Innovation Foundation chairman Demetris Skourides. Panay, who oversees products including Alexa, Kindle, Fire TV, Ring cameras, Amazon Leo and other emerging technologies, said building products at scale while preserving a personal touch remained a difficult balancing act. Cyprus’ tourism sector is returning to a more stable path after a difficult spring, Deputy Tourism Minister Kostas Koumis said on Wednesday, as May arrivals showed signs of recovery despite remaining below last year’s levels. According to the latest figures from the Statistical Service (Cystat), tourist arrivals in May reached about 455,000, marking a 4.9 per cent decrease compared with May 2025, but an 8.1 per cent increase compared with May 2024. For the first five months of 2026, arrivals were 13.3 per cent lower than in the same period last year, while they were almost unchanged from 2024, recording a 0.4 per cent decrease. “The announcement of the results of the Cystat for tourist arrivals for the month of May confirms the gradual recovery of the tourism sector in our country,” Koumis said. Cyprus recorded a decline in tourist arrivals during May 2026, with visitor numbers falling by 4.9 per cent compared with the same month last year, according to figures released by the statistical service on Wednesday. The data published by Cyprus Statistical Service (Cystat) showed that tourist arrivals reached 455,680 in May 2026, down from 479,160 in May 2025. The figures indicate that the island’s tourism sector experienced a slowdown after a strong performance in previous years. For the first five months of 2026, total tourist arrivals amounted to 1,166,050, compared with 1,344,486 during the corresponding period of 2025. This represented a year-on-year decline of 13.3 per cent. Cyprus transport minister Alexis Vafeades said on Wednesday that a long-awaited European agreement on air passenger rights is expected to come into force in early July 2027, following approval by the European Parliament and the Council. Speaking after the Council of Ministers meeting, Vafeades said he had briefed cabinet on the agreement reached in Strasbourg during the Cyprus Presidency of the Council of the EU. The reform updates rules that had remained largely unchanged for more than a decade and seeks to make passenger rights clearer in cases of flight delays, cancellations and denied boarding. “We consider it a great success for all passengers throughout Europe, for a regulation that had not progressed for about 13 years,” Vafeades said, adding that the text would now proceed to the next legislative stages. According to the minister, the agreement will make it easier for passengers to know their rights and claim compensation, while also introducing clearer rules for families and vulnerable travellers. Parents will be able to sit next to children under the age of 14 without paying extra, while passengers with disabilities and reduced mobility will receive stronger protection. Cyprus’ new House of Representatives must treat condominium reform as an urgent public safety issue, Cyprus Real Estate Developers Association vice chairman Savvas Georgiades has said, warning that years of delays have left thousands of residents exposed to poor maintenance, weak management and deteriorating buildings. Among them, he said, the management of jointly owned buildings has now become one of the most pressing, particularly after the developments of recent months, which have shown that the issue “can no longer be left on hold”. However, many of these buildings are now facing serious maintenance and management problems, Georgiades said, creating risks not only for the value of properties but also for the safety of those living in them. As a result, he added, poor management, weak oversight and the lack of proper controls have contributed to the serious deterioration of a number of buildings, “with direct consequences for the safety of residents” George Theocharides, Chairman of the Cyprus Securities and Exchange Commission (CySEC) opened iFX EXPO International 2026 in Limassol on Wednesday with a regulatory message aimed at an industry facing sharper scrutiny, faster technology shifts and a more demanding European policy environment. Addressing delegates at the City of Dreams Mediterranean, Theocharides set out the main regulatory and supervisory issues shaping financial markets across the European Union, as Cyprus continues to play a more visible role in European financial services during its Presidency. His keynote address placed supervision at the heart of an event more commonly associated with brokers, fintech firms, payment providers, liquidity companies and trading technology vendors, reflecting how closely the sector’s growth is now tied to regulation, compliance and market integrity. The three-day event, running from June 16 to 18, is expected to draw more than 6,500 attendees, 200 exhibitors and over 120 speakers, making it one of the largest international gatherings for the online trading and fintech industries. Although the conference opened on Tuesday evening with a welcome event at Columbia Beach, the main exhibition floor and speaker programme began on Wednesday, with discussions spread across the Speaker Hall and the newly introduced Mastery Hub stage. Cyprus’ economy continued to display a mixed but generally resilient performance in the opening months of 2026, with strong growth in construction activity and vehicle registrations offset by weaker exports and a sharp decline in tourist arrivals, according to the Cyprus Statistical Service (Cystat). Among the indicators showing positive momentum, manufacturing production rose by 0.5 per cent during the period from January to March 2026 compared with the corresponding period of 2025. At the same time, the construction sector posted a substantial increase in activity. According to Cystat, the total area covered by authorised building permits reached 661,400 square metres during January and February 2026. Cyprus’ Harmonised Index of Consumer Prices recorded a notable rise of 3.5 per cent year-on-year in May 2026, according to the latest figures released by the Cyprus Statistical Service (Cystat). This economic indicator, which tracks the evolution of prices for consumer goods and services, also saw a monthly increase of 0.8 per cent when comparing the period from April 2026 to May 2026. When looking at the annual rate of change compared to May, 2025, the transport sector experienced the most significant upward shift with a rise of 9.7 per cent. The category of recreation, sports and culture also saw a substantial increase, climbing by 7.8 per cent over the same twelve-month period. Conversely, the data highlights areas where costs have diminished, with clothing and footwear witnessing the largest negative change at 8.5 per cent. Limassol is hosting one of the online trading industry’s largest international gatherings this week, as iFX EXPO International 2026 brings brokers, fintech firms, liquidity providers, payments companies and digital asset specialists to Cyprus. The three-day event is taking place from June 16 to 18 at City of Dreams Mediterranean, with the main exhibition opening on Wednesday and continuing on Thursday. According to the organisers, the expo serves as a global meeting point for the online trading industry, bringing together institutional brokers, fintech companies, liquidity providers, affiliates, payment providers and technology firms. This year’s event is expected to attract more than 6,500 attendees, over 200 exhibitors and more than 100 speakers, with participants using the Limassol gathering to discuss new partnerships, technology solutions, market conditions and the changing regulatory landscape. The Central Bank of Cyprus (CBC) this week published a summary overview of its governance framework, outlining the structures, principles and decision-making mechanisms that underpin its operations in a move aimed at strengthening transparency and public understanding. The document was released for informational purposes and provides a concise description of the governance arrangements that guide the central bank’s activities and support its mission of serving the public interest. The CBC stressed that the publication is not a legal document and does not replace the legal and regulatory framework governing the institution. The bank said it remains committed to the principles of transparency, accountability and good governance, which support public confidence and contribute to the stability of the financial system. Members of the board of the Cyprus Chamber of Commerce and Industry (Keve) met with Finance Minister Makis Keravnos on Monday, in order to discuss current economic challenges as part of an ongoing dialogue between the government and the business community. During the meeting, the participants held a comprehensive discussion regarding the ongoing economic difficulties and their subsequent effects on the national economy. Considerable emphasis was placed on the energy crisis and the significant pressure this is placing on the operational costs of local businesses, as well as the wider implications of the conflict in the Middle East for the tourism sector and other key economic pillars. The attendees also examined the economic ramifications resulting from the outbreak of foot and mouth disease, with particular attention given to the consequences for the agricultural sector and the supply chain, alongside the potential secondary impacts on broader commercial activity. A packed hall at the Bank of Cyprus (BoC) head offices became a celebration of talent, effort and family pride, as students who excelled in mathematics competitions in Cyprus and abroad were honoured for their achievements. The awards ceremony was organised by the Cyprus Mathematical Society (CMS), with the support and cooperation of the BoC, bringing together students, parents, guardians and teachers. According to the announcement, the ceremony recognised students who stood out in local, Pancyprian and international mathematics competitions, rewarding their dedication, perseverance and strong performance. The event also reflected the BoCs’ long-standing support for the younger generation, particularly in areas linked to STEM, namely science, technology, entrepreneurship and mathematics. Cyprus’ role in advancing patient-centred health innovation came into focus during a visit by Chief Scientist for Research, Innovation and Technology Demetris Skourides to the Thalassaemia International Federation (TIF), where discussions centred on artificial intelligence, digital tools and global cooperation in support of people living with thalassaemia and other haemoglobinopathies. According to the statement, the visit brought together Skourides and the federation’s leadership team, with TIF executive director Androulla Eleftheriou briefing him on the organisation’s international mission, strategic priorities and long-standing work in strengthening care, research, policy guidance and patient advocacy across health systems worldwide. Eleftheriou presented TIF’s role as a global reference point for the thalassaemia community, noting its work in providing guidance, promoting best practices, supporting research, advising policymakers and ensuring that the voice of patients remains central to decisions affecting their care. Cyprus has room to develop industrial tourism despite the absence of heavy industry, experts said during an international conference in Nicosia, pointing to food and drink production, winemaking, cosmetics and agriculture as sectors that could offer visitors more authentic experiences. The conference, titled ‘Industrial Tourism Conference – Enhancing Visitor Experiences and Promoting Local Businesses’, was organised by the Nicosia Regional Tourism Board (Etap) on June 11 at CYENS, as part of the European IndusTour project under Interreg Europe. According to Etap, the event brought together representatives of organisations, researchers, tourism professionals and stakeholders from Cyprus, France, the Czech Republic, Poland, Serbia and Denmark, with discussions focusing on how industrial tourism can support sustainable development, diversify local economies and strengthen small businesses. Participants said “industrial tourism can go beyond traditional sightseeing by opening production spaces to the public and allowing visitors to see how local products are made.”