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Tourism contributes €3.5 billion to economy in 2016

It is a well-known fact that tourism is a significant contributor to the island’s economy, with tourism in 2015 collecting 3.4 billion in revenue, which corresponds to 19.3% of GDP in 2015. The increase in tourist arrivals in 2016 has translated into a 4.4% increase in revenue from tourism, or a total of 3.5 billion(19.9% of GDP). In addition, future projections for tourism are positive: a 3.6% annual increase is expected until 2026, for total collected revenue of €5 billion, or 22.9% of GDP.

According to a KPMG report titled “Cyprus Tourism Market Report” which was published by the World Travel and Tourism Council (WTTC), the tourism industry is one of the largest sectors in the Cyprus economy, with significant growth during the past five years, with the number of tourists reaching 3.2 million in 2016.

The annual number of tourist arrivals has increased significantly in the past three years, in spite of the slight decrease in 2013.

The report says 2016 was a record year in tourist arrivals, with the number reaching 3,186,531. In 2016 there was an increase of 19.8% compared to 2015, when tourist arrivals reached 2,659,405. It is noted that the increase in arrivals in 2016 was recorded in all months of the year compared to 2015.  March in particular was noteworthy for the fact that an annual increase of 29% was recorded in 2016.

The KPMG report also notes that the Cyprus tourist product is more expensive than other Mediterranean destinations. Also mentioned in the report are the government’s efforts to decrease seasonality in tourism, by increasing the tourist period by two months. There is also mention of the casino-resort to begin construction in the near future which will also decrease seasonality.

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