Cyprus’s Council of Ministers approved five targeted grant schemes on Thursday to support the tourism sector, including a €1.5 million fund to upgrade hotels and recreation centres in Kato Pyrgos, Tillyria.
The schemes form part of a wider tourism development strategy. That strategy rests on three main goals: expanding niche forms of tourism, broadening the range of tourism services on offer, and boosting visitor numbers in less popular tourist areas.
Speaking after the Cabinet meeting, Deputy Minister of Tourism Costas Koumis outlined the five schemes the Council had approved. These are a grant scheme to upgrade hotels, tourist accommodation and recreation centres in Kato Pyrgos, Tillyria, and an incentive scheme to attract conference tourism events, running from 2026 to 2029. The Council also approved an incentive scheme to attract foreign sports teams for training camps, also running from 2026 to 2029, alongside an incentive scheme to support experiential workshops and a grant scheme for Christmas villages next year.
Development challenges facing Tillyria
Koumis said the Kato Pyrgos scheme is a targeted intervention in an area with strong natural and cultural advantages that still faces development challenges. Hotels, tourist accommodation and recreation centres operating in Kato Pyrgos, Tillyria are eligible for support covering 85 per cent of eligible costs, with a total budget of €1.5 million for the 2026 to 2028 period.
Attracting high-spending visitors
Koumis said the conference tourism scheme targets a high-value form of tourism. “The real breakthrough with this scheme now is its four-year duration, which lets organisers plan their events in Cyprus well in advance. The scheme’s annual budget is €150,000,” he said.
Tourism industry figures have long pursued this type of tourism, since it can help attract higher-spending visitors. It can also help ease seasonality and support areas that have so far struggled to draw significant visitor numbers, such as the capital and mountain regions.
Foreign sports teams’ training camps
Koumis singled out the scheme to attract foreign sports teams as particularly significant. It aims to further strengthen sports and training tourism in Cyprus and, like the conference tourism scheme, runs for four years. It is aimed at foreign sports teams, clubs, federations and academies, as well as travel organisers and licensed travel agencies, with €400,000 set aside annually.
Cyprus’s climate is considered attractive to teams looking to train on the island, mainly during winter, helping to ease seasonality. The scheme could also have a multiplier effect, since a popular team’s visit can draw large numbers of its fans.
Christmas villages and tradition
The last two schemes approved on Thursday cover support for Christmas villages and festive-period events more broadly, as well as funding for experiential workshops. One of the two schemes funds workshops such as traditional handicrafts, the processing of agricultural and livestock products, and wine and food tourism. Koumis said the scheme aims to connect the tourism sector with tradition, local production and authentic visitor experiences, with an annual budget of €100,000.
The Christmas Villages Grant Scheme for 2027 aims to further boost winter tourism by supporting festive events over the Christmas period. “It’s an institution that has now become established, bringing multiplier benefits to local communities. The scheme’s annual budget is €640,000,” Koumis said, closing his briefing.
