Cyprus hotels receive green awards as government reveals tourism support package

Cyprus has celebrated a major “green” milestone for its hotels, just as the government has announced a new package of support measures to shield the industry from regional instability, according to an announcement from the Cyprus Employers and Industrialists Federation (Oev) released on Thursday.

Regarding the former update, the federation held a certificate award ceremony in Nicosia earlier this week, centred around the circular economy certification scheme.

The scheme is being implemented under a broader initiative promoting sustainable practices in Cypriot hotels.

The event, held on Tuesday, marked the culmination of a four-year systematic effort aimed at supporting the green transition of Cyprus’ tourism product through the integration of circular economy principles, according to an announcement by the federation.

The measure titled promotion of the circular economy in hotel establishments was implemented by Oev in cooperation with the Deputy Ministry of Tourism, with funding from the European Union Recovery and Resilience Facility under Cyprus’ Recovery and Resilience Plan 2021–2026.

The initiative demonstrated the readiness of Cyprus’ hotel businesses to adapt to modern environmental and economic challenges.

“The initiative of Oev is commendable and highlights the need to upgrade Cyprus’ tourism model through sustainability and the practical implementation of the circular economy,” said Deputy Minister of Tourism Kostas Koumis.

On his part, Finance Minister Makis Keravnos said that “the transition to circular business models carries significant fiscal and developmental value“.

“I congratulate Oev for implementing the measure and underline the importance of Cyprus’ absorption of Recovery and Resilience Facility funds,” the minister added.

“Cyprus tourism is leading the green transition by utilising Oev’s circular economy certification scheme to upgrade its qualitative footprint and strengthen its long-term strategic position,” said Oev president George Pantelides.

“Our tourism sector faces major challenges due to the crisis in the Middle East,” he continued.

“From day one, Oev, together with tourism stakeholders, particularly the Cyprus Hoteliers Association (Pasyxe) and the Cyprus Tourism Enterprises Association (Stek), has been in productive cooperation with the ministers of finance, labour and tourism, promoting proposals for targeted state support schemes for business activity in the tourism sector and for employees across the wider industry,” Pantelides added.

“Some of these schemes are expected to be finalised and announced by the government within the week,” he said.

Indeed, the government later on Thursday confirmed a €200 million package comprising eight measures aimed at addressing rising costs following four weeks of war in the Middle East.

Among the measures, the reduced five per cent rate of value added tax on electricity will be extended until May next year, having initially been expected to expire in May this year, while the fuel consumption tax will be reduced by 8.33 cents per litre between April and June.

In addition, the government will cover 30 per cent of wages for all workers in the hotel sector during April, while also preparing a special plan to provide further support to airlines in order to maintain connectivity with key tourism markets.

This comes on the back of repeated calls for support, following concerns express by various tourism industry stakeholders.

Earlier this week, Cyprus hoteliers warned of a sharp slowdown in bookings for April and May due to Middle East instability.

While summer reservations remain stable, a lack of new European and Israeli bookings has prompted calls for state support for staff. Industry leaders hope for a recovery as regional flights potentially resume.

At the same time, there have been calls for the government to protect Cyprus’ tourism industry during this challenging time.

Proposals have included enhancing air connectivity, launching targeted international safety campaigns, and establishing permanent domestic tourism support.

Meanwhile, Oev stated that the ceremony concluded with the official presentation of circular economy certificates to 19 successful hotel businesses from across Cyprus.

The certified hotel establishments included Adams Beach, Aliathon Resort, Alion Beach, Almyra, Atlantica Miramare Beach, Amathus Beach, Annabelle, Atlantica Aeneas, Cavo Maris Beach, Crowne Plaza Limassol and Flamingo Paradise Hotel.

Other certified hotels were Four Seasons, Leptos Coral Beach, Nissi Beach Resort, Nissiblu Beach Resort, Olympic Lagoon Paphos, Olympic Lagoon Resort, Atlantica Sancta Napa and St Raphael.