Philenews

George Mayes: Paphos Faces Economic Challenges in 2026

Published January 3, 2026, 12:12
George Mayes: Paphos Faces Economic Challenges in 2026

Despite the volatile and deteriorating international political and economic environment, Paphos has recorded remarkable growth in the years 2024-2025, mainly due to tourism and land development. The President of the Paphos Chamber of Commerce and Industry, George Mayes, emphasizes the need for immediate state support to ensure the continuation of development. Tourism remains the dominant sector of Paphos's economy, with approximately 1.5 million arrivals in 2024, representing 36% of all tourist arrivals in Cyprus and generating €1.15 billion in tourism revenue. Paphos has around 30,000 beds, 33% of the total on the island, with 60% of these being in 4 and 5-star hotels. The construction sector has also seen growth, with a 34% increase in property sales in December 2024 compared to 2023, and a further 15% increase in the first eight months of 2025, despite a decrease in demand from Chinese and Russian buyers. Demand from Israel, Lebanon, and other European countries is offsetting the losses. In addition, retail trade, industry, and agriculture are showing positive prospects, while significant infrastructure and urban development projects, many of which were proposed by the Chamber, are strengthening Paphos's development momentum. However, population growth and new social needs require modern infrastructure and practices, highlighting the need for state intervention.