Maintaining Cyprus’s image as a safe destination
Economist Tassos Yiasemides emphasised that Cyprus’ economic stability depends on preserving the country’s reputation as a secure and reliable destination for tourism and investment, especially given geopolitical tensions in the wider region. He warned that businesses in conflict-adjacent markets may seek alternative locations if confidence falters.
Yiasemides stressed that promoting “normalcy” is key, suggesting incentives for hotels to remain open, even with limited staff, rather than subsidising closures. He also highlighted the importance of gradually resuming meetings and conferences linked to Cyprus’s EU Council Presidency.
Coordinated promotion and connectivity
The economist underlined the need for coordinated efforts to market Cyprus abroad and strengthen connectivity. With potential declines in tourist flows from conflict-affected countries, focus should shift to alternative markets, supported by state coordination, professional bodies, and economic diplomacy.
Addressing inflation and energy costs
Yiasemides warned that Cyprus faces high imported energy costs combined with primary sector disruptions, such as those caused by foot-and-mouth disease. He recommended that government measures focus on preventing price-gouging, ensuring adequate product supply, and, if needed, temporarily supporting imports to stabilise markets.
He also highlighted opportunities in renewable energy development, energy storage incentives, building upgrades, and ending energy isolation. Interventions could include subsidies, support for vulnerable households and high-consumption businesses, and temporary tax or VAT reductions, always within EU guidelines.
Preparing for prolonged uncertainty
Finally, Yiasemides stressed the importance of monitoring the budget and planning for potential long-term geopolitical fragility, including risks of stagflation, reduced revenues, or rising interest rates, to ensure that ready measures can safeguard the Cypriot economy.
Also read: Cyprus fuel prices rise in second wave
For more updates and analysis, check our YouTube channel
