How far holiday money goes in Cyprus

Cyprus is not the Mediterranean’s cheapest holiday destination, but it remains less expensive than many of its best-known rivals for the two things travellers often notice most, a hotel room and dinner out. The latest Eurostat data, puts Cyprus’s restaurant and accommodation price index at 85.2, against an EU average of 100. That leaves the island fractionally cheaper than Spain and Greece, while Slovenia, Croatia, Malta, Italy and France are progressively more expensive. Portugal remains the notable western Mediterranean bargain, while Albania and Montenegro offer lower prices farther east. Beyond the Mediterranean, the same figures place Bulgaria, Romania, Serbia, Bosnia and Herzegovina and North Macedonia below Cyprus for both general consumer prices and hospitality. Germany, Austria, Belgium, the Netherlands and the Nordic countries, meanwhile, are markedly more expensive. The wider picture is similar. Across the full household basket, which includes everything from groceries and clothing to transport and services, prices in Cyprus were 10.8 per cent below the EU average. The island was cheaper than Spain, Malta, Italy and France, although Greece, Portugal and Croatia came in lower. The gap becomes considerably wider when the comparison stretches across Europe. A separate Euronews analysis found that North Macedonia, Bosnia and Herzegovina, Romania, Bulgaria, Montenegro, Serbia and Albania were among the lowest-priced countries. Iceland and Switzerland occupied the opposite end, followed by several northern and western European economies. For food bought from shops, however, Cyprus sits almost exactly on the European average. Greece is more expensive, as are Croatia and Malta, while Spain offers slightly better value. It is a useful reminder that “cheap” depends heavily on how a visitor spends. A self-catering family, a couple eating out each evening and an all-inclusive guest will experience the same destination very differently. Some everyday holiday purchases produce much sharper differences. According to the Euronews breakdown, alcoholic drinks in Greece were 54 per cent above the EU average, with Croatia more than one-third higher. Italy was 18.1 per cent below the European benchmark and Spain was 9.9 per cent cheaper, while France and Portugal remained much closer to the average. Even soft drinks can change the bill. Italy was the least expensive country in that part of the comparison, at 18.2 per cent below the EU average, while Croatia was 33.5 per cent higher. Seafood prices were less widely spread, ranging from 4.6 per cent below the EU average in Portugal to 12.7 per cent above it in Greece. Getting around presents a different picture. France was the only country in the comparison where public transport exceeded the EU average. Portugal, Spain and Croatia were around 20 per cent cheaper, while Greece remained just below the European benchmark. Fresh resort-level research brings the comparison closer to what holidaymakers actually encounter. The Post Office’s July survey, compiled with price research from TUI and local tourism bodies, placed Paphos among Europe’s 10 best-value family resorts. Its basket of meals, drinks and everyday holiday purchases cost £177.18. That was more expensive than the Algarve and several Spanish resorts, but cheaper than Rhodes, Corfu and Crete, as well as the Croatian resorts of Porec and Zadar and the Italian destinations of Puglia and Sorrento. In other words, Paphos did not win the price contest, but it performed well against places competing for much the same sun-and-sea market. Currency movements have also softened some of the increases for British visitors. Laura Plunkett, head of Post Office Travel Money, told Condé Nast Traveller that “families will not face the full brunt of the local price rises” after sterling strengthened against the euro. Cyprus’s tourism authorities have repeatedly presented the island in similar terms. Tourism Deputy Minister Kostas Koumis told Travel Weekly in March that “Cyprus is considered a value for money destination”. The industry itself is taking a more cautious line. Cyprus hoteliers association president Yiannos Pantazis has acknowledged concerns about prices and restrictive minimum stays. He said that “hotels were being encouraged to offer reasonable packages”, while accepting that demands for three- or four-night bookings were drawing justified criticism. There is good reason for that caution. Although the Eurostat comparison uses 2025 national averages, the latest Cystat figures show that restaurant and accommodation prices in Cyprus rose 8.9 per cent in the year to June 2026. They increased another 3.4 per cent between May and June alone. Demand, nevertheless, appears to be recovering. Jet2 said Cyprus was among the destinations recording the strongest recent rebound in bookings. “There is still a massive amount of people who want to go away,” chief executive Steve Heapy told The Guardian. Price comparisons also say little about what residents or visitors can afford. Professor Robert Inklaar of the University of Groningen told Euronews Business that the “figures should always be read together with earnings”, since the same price can feel very different depending on income and purchasing power. The result is more nuanced than a cheapest-to-dearest league table. Cyprus is no bargain-basement destination, and rising hospitality prices could weaken its position. For now, however, it still offers a relatively competitive Mediterranean holiday, particularly when set against Greece’s islands, Croatia, Malta, Italy and France.