Cyprus Business Now: tourism, shipping, banks, housing, labour market, CBC

Cyprus recorded 63 occupations with labour shortages and 11 with labour surpluses in 2024, according to the EURES Labour Shortages and Surpluses Report 2025, which persistent gaps across the technology, tourism and healthcare sectors. The report, published on Monday, shows that labour shortages in Cyprus span a wide range of professions, with the most severe gaps concentrated in healthcare and digital technology roles. Among the most affected are nurses, midwives, information and communications technology sales professionals, systems analysts, software and applications developers, web and multimedia developers, medical imaging technicians, waiters and bus drivers. Moderate shortages were also recorded across a broad set of roles closely linked to tourism, retail and construction activity, including restaurant managers, retail and wholesale managers, accountants, electricians, electronics and mechanical technicians, chefs, shop sales assistants and cashiers. The report also highlighted shortages in construction and industrial trades, including builders, air conditioning and refrigeration technicians, welders, heavy goods vehicle drivers, cleaners, and workers in agriculture, livestock, fisheries and construction-related services. Hotel occupancy in Paphos has fallen sharply compared with last year, with the city and district seeing rates around 20 per cent lower than the corresponding period of 2025, according to hoteliers association (Pasyxe) president Thanos Michaelides. Speaking to the Cyprus News Agency (CNA), Michaelides said hotels and other tourist accommodation in Paphos would normally expect occupancy levels to be above 90 per cent during the peak summer months of June, July and August. This year, however, occupancy is closer to 70 per cent, leaving a sizeable gap at what should be one of the strongest periods for the district’s tourism industry. Although bookings have shown some improvement, particularly through last-minute reservations, Michaelides said “the increase has not been enough to bring the market back to normal seasonal levels.” Cyprus’ banking sector recorded higher deposits and stronger lending in May 2026, according to figures by the Central Bank of Cyprus (CBC) covering deposits and loans at monetary financial institutions. Total deposits registered a net increase of €343.8 million in May, reversing the net decline of €123.1 million recorded in April. The year-on-year growth rate of deposits accelerated to 5.1 per cent, up from 4.5 per cent in the previous month. As a result, the total stock of deposits rose to reach €58 billion. Within this figure, deposits held by Cyprus residents increased by €239 million over the course of the month. Household deposits grew by €171.3 million, which highlights a pattern of continued growth in domestic savings. Strengthening the competitiveness of the Cyprus flag and the wider maritime sector remains a key priority for the government, according to Shipping Deputy Minister Marina Hadjimanolis, during a time when the industry faces geopolitical uncertainty, pressure to decarbonise and a more fragmented global trade environment. Speaking on behalf of President Nikos Christodoulides at a shipping symposium in Limassol, Hadjimanolis said shipping had always been “much more than just another economic sector” for Cyprus. Rather, she said, it remains “a driver of economic growth, a pillar of stability and, above all, a bridge connecting economies, societies and continents”. The symposium was held under the auspices of the Deputy Ministry of Shipping, the Limassol Chamber of Commerce and Industry (Keve), the Cyprus Shipping Chamber (CSC), WISTA Cyprus and DP World. Hadjimanolis said international shipping is operating in an increasingly difficult environment, shaped by geopolitical uncertainty, changing trade patterns and growing complexity across global supply chains. The Cyprus Marine Club drew its largest audience to date, welcoming around 200 members and guests to a landmark gathering that brought together the island’s maritime community for an evening of industry insight, networking and reflection. Opening the event, the club’s president, Captain Eberhard Koch, said the strong turnout reflected the club’s continued growth and the active engagement of its members. He also announced the addition of two new corporate members, Guma Tech and EMA, as well as new individual member Aristotelis Moutafis, further expanding the club’s maritime network. With the event taking place close to the Day of the Seafarer, Koch also used the occasion to pay tribute to seafarers around the world, recognising their dedication, resilience and vital contribution to global trade and the wider maritime industry. The focus of the evening then turned to Prabhat Jha, Group Managing Director and CEO of MSC Shipmanagement Limited, who delivered the keynote address. Interior Minister Constantinos Ioannou is in Luxembourg today to chair a meeting of the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) in its housing configuration, as part of the Cyprus Presidency of the Council of the EU. According to the Interior Ministry, EU ministers responsible for housing are expected to adopt the first Council conclusions on housing, a step Nicosia sees as an important marker for European cooperation in a field that has become increasingly pressing across the bloc. The conclusions focus on the need for housing policies that respond to demographic, social and economic changes, while respecting the principle of subsidiarity and the responsibilities of member states. They also call for stronger cooperation between EU countries, particularly through the exchange of knowledge, data and best practices. The meeting will also include a policy debate on housing security for students and middle-income households, with ministers expected to discuss shared challenges and possible policy responses to improve access to quality, safe and affordable housing. Space solutions firm SES and Cyprus-based connectivity provider Tototheo Global have announced the expansion of their long-standing collaboration through a new multi-year agreement to deploy SES FlexMaritime services across global markets, strengthening connectivity solutions for maritime customers worldwide. Under the agreement, SES will provide Tototheo Global with high-performance multi-orbit satellite and terrestrial connectivity, allowing the Cyprus-headquartered technology company to extend advanced communications services to maritime customers around the world. The companies said that the combination of SES’ satellite infrastructure and Tototheo Global’s industry expertise and international service capabilities will deliver consistent and reliable connectivity that supports critical vessel operations while accelerating the adoption of data-driven and digitally enabled onboard services. The Bank of Cyprus Holdings Public Limited Company announced on Monday that its board of directors will meet on August 03, 2026, to review the financial results for the six months ended June 30, 2026. During this session, the board will also consider the declaration and payment of an interim dividend. The financial results are scheduled for release on Tuesday, August 04, 2026, prior to the opening of trading on both the Athens Stock Exchange (Euronext Athens) and the Cyprus Stock Exchange (CSE). The company also provided an updated 2026 financial calendar, which confirms the amended publication date for the first half of the year. The calendar lists Tuesday, August 04, 2026, as the date for the first half financial results and an accompanying analysts briefing. Eurobank announced on Monday that it successfully repurchased 2,977,805 of its own shares during the period between June 22, 2026, and June 26, 2026. These transactions were conducted on the Euronext Athens stock exchange as part of the share buyback programme that was initially approved by the bank’s shareholders on April 28, 2026. The shares were acquired at an average price of €4.1785 per share, resulting in a total cost of €12,442,624.22. The purchases were executed by the member firm Eurobank Equities Single Member Investment Firm S.A, the announcement added. On June 22, 2026, the bank acquired 439,122 shares at an average price of €4.2887, followed by 488,223 shares on June 23, 2026, at an average price of €4.2658. Cyprus’ tourism revenue fell significantly in April 2026, when compared to the year before, according to figures released by the statistical service, with Deputy Minister of Tourism Kostas Koumis saying the decline had been expected because of the conflict in the Middle East and its impact on travel demand. Koumis said April 2026 represented a continuation of the difficult conditions experienced in March 2026, a period that was significantly affected by the conflict in the Middle East and its aftermath. “April was essentially a comparison between April 2025, the best April in the history of Cyprus tourism, when the sector exceeded 400,000 arrivals for the first time, and April 2026, a month affected by the conflict in the Middle East, intense negative international publicity, reduced flight schedules and other factors,” he said. Tourist arrivals fell to 303,031 in April 2026 from 418,730 in April 2025, reflecting the sharp decline in demand during the month. Invel Real Estate announced on Monday that it closed its Eudora Fund 2 at more than €400 million, surpassing its initial target of €300 million and signalling strong investor demand for its Southern Europe strategy. The European private equity real estate firm said that including leverage and co-investment capital, the fund will have firepower exceeding €1 billion, significantly expanding its investment capacity across target markets. The fund is structured as an opportunistic investment vehicle, deploying capital across the capital structure in situations driven by mispricing, market dislocation and value creation opportunities. Invel said its strategy is built around two core themes, liquidity solutions and recapitalisations, alongside investments in single assets, portfolios and platforms where value can be unlocked through repositioning, development and active management. Cyprus’ tourism revenue fell by 35.1 per cent year-on-year in April 2026, reaching €197.5 million, according to a report from the statistical service (Cystat). This compares with €304.2m in April 2025, marking another weak month for tourism receipts. For the January to April 2026 period, total tourism revenue is estimated at €443m, compared with €582.5m in the same period of 2025. This represents a 23.9 per cent decrease for the first four months of the year. The figures are based on the passenger survey carried out by Cystat, which records spending by visitors departing from Larnaca and Paphos airports. At the same time, the April data showed a decline in average tourist spending. Cyprus’ Industrial Production Index rose by 1.4 per cent in April 2026, reaching 113.4 units, according to figures released by the statistical service (Cystat). For the first four months of the year, the index recorded a cumulative increase of 1.6 per cent compared with the corresponding period of 2025. The figures are calculated using 2021 as the base year, meaning the index measures monthly changes in production in relation to the average monthly production recorded during that year. The manufacturing sector posted a more limited increase in April, rising by 0.6 per cent year-on-year, with the index reaching 117.1 units. Growth was also recorded in electricity supply, where production rose by 6.9 per cent, as well as in mining and quarrying, which increased by 4.5 per cent. Water supply and materials recovery also moved higher, rising by 4.4 per cent. The Central Bank of Cyprus (CBC) announced on Monday that it has decided to maintain the countercyclical capital buffer rate at 1.5 per cent. The CBC determined that the current level of capital protection remains appropriate for the stability of the Cypriot financial system. This decision was reached within the framework of the responsibilities held by the Central Bank of Cyprus under the Macroprudential Oversight of Institutions Laws of 2015 to 2022.