Economic advisor warns against military imagery in Cyprus’ public messaging

Cyprus must tread carefully in how it presents itself abroad as tensions in the Middle East persist, with any misstep in public messaging risking damage to tourism, investment and confidence, Cyprus economy and competitiveness council chairman Demetris Georgiadis said.

Speaking to the Cyprus News Agency (CNA), Georgiadis warned that the island’s image as a safe destination should not be undermined by loose messaging, particularly in international media, at a time when perceptions can shift quickly and carry economic consequences.

“Statements or images associated with warships or military bases may create a feeling of insecurity, even if this is not the intention,” he said.

He said the government should move quickly on reassuring tourist markets that Cyprus remains safe, preparing contingency plans in case the regional crisis deepens, and protecting air links.

The latter, he suggested, is particularly important. Once airlines cut routes and redeploy aircraft elsewhere, bringing those connections back is neither immediate nor guaranteed.

On energy, Georgiadis said Cyprus is now facing the cost of earlier delays, arguing that the country failed to act in time either on expanding renewables or securing natural gas.

“As a result, the scope for reaction today is limited,” he said.

Taxation, he added, is one of the few tools still available, but he made clear that its usefulness is constrained. Cuts in consumption taxes may offer some relief, yet they risk creating fiscal pressure without producing the kind of impact households might expect.

He also pointed to the wider economic fallout from higher energy costs, saying “the effect runs through inflation and transport, including the cost of air travel for tourists heading to Cyprus.”

Still, Georgiadis argued that the crisis could also sharpen the case for longer-term investment in competitiveness. Cyprus, he said, has room to strengthen its role as an energy hub and to expand transit trade, provided it improves infrastructure at ports and airports.

Georgiadis said better connectivity would not only lower transport costs and widen options, but also make the island more attractive to international companies weighing a move. Ease of access, he noted, remains a decisive factor, and Cyprus is at a disadvantage when several connecting flights are needed.

Such projects, however, require time and serious planning.

On foreign investment, Georgiadis said Cyprus continues to benefit from core advantages, including its tax framework and European Union membership. The bigger risk, in his view, lies elsewhere.

“The crucial element is that incidents do not arise that will cause panic and a feeling of insecurity,” he said.

He said businesses and investors already established in Cyprus are unlikely to be rattled easily, particularly as the situation becomes clearer over time.

He also said the country’s long-standing ability to maintain good relations across the region remains a strategic asset.

Turning to fiscal policy, Georgiadis said the government should be especially cautious over public spending, warning against a continued rise in inelastic expenditure.

“The state payroll is already at quite high levels and has increased in recent years. We must be very careful so that this does not continue,” he said.

He also cautioned against treating fiscal surpluses as permanent, arguing that they should not be used to fund benefits, tax breaks or subsidies that may prove unsustainable if growth weakens. External shocks, Georgiadis warned, can quickly change the outlook.