Impressive Growth in Cyprus's Services Sector for 2023, Tourism Rebounds, and Innovations Flourish

The Employers and Industrialists Federation (Oev) has lauded the impressive performance of the services sector in 2023, citing significant advancements across various key segments. Noteworthy increases were reported in accommodation and catering services, which saw a remarkable surge of 18.9 percent, while administrative and support services grew by 15.5 percent. Additionally, professional, scientific, and technical activities saw a rise of 2.7 percent, with the field of information and communication experiencing a 2 percent increase.

A standout achievement in the tourism sector was witnessed in 2023, with tourist arrivals in Cyprus reaching 3,845,652, approaching the pre-pandemic levels of 2019. This marked a substantial rebound from the previous years, notably surpassing the figures of 2022 and 2021. Tourists from the United Kingdom led the influx, recording 1,302,125 arrivals, followed by Israel, Poland, and Germany, all showing notable increases compared to previous years.

The shipping sector continued to demonstrate resilience, playing a vital role in transporting essential goods, contributing significantly to Cyprus's GDP despite facing challenges. Oev's Annual General Meeting (AGM) scheduled for April 23, 2024, will delve into the trajectory of the services sector, underscoring its importance in the economic landscape.

In the past year, Oev embarked on various initiatives aimed at promoting digital skills and fostering innovation within the services sector. Recognizing the importance of digital transformation, the federation conducted research to identify and accentuate employees' digital skills. Innovation Awards were bestowed upon two companies as part of the Cyprus Innovation Awards, showcasing Oev's commitment to innovation.

Moreover, Oev facilitated cross-border collaboration by organizing a Business Mission of Cypriot IT businesses to Greece in collaboration with the Pancyprian IT Business Association (CITEA). Additionally, initiatives such as informational presentations on digital skills and panel discussions on Artificial Intelligence underscored Oev's dedication to advancing technological adoption within the sector.

In its commitment to effective conflict resolution, Oev organized an Information Day advocating for the inclusion of clauses in contracts for dispute resolution through Arbitration and Mediation. Furthermore, the federation's involvement in the newly established Tourism Promotion Agency highlights its unwavering support for the tourism sector, further solidifying its role as a driving force in Cyprus's economic development.

By fLEXI tEAM