Paphos, Cyprus. Paphos is developing into a more diversified business and investment centre, with tourism increasingly complemented by real estate, education, technology and professional services, according to an analysis by KPMG Cyprus. The firm said the district has shifted from being known mainly as a holiday and retirement destination to a broader economy with an international outlook.
Economic transformation
KPMG Cyprus said the district’s transformation has been driven by new investment, upgraded infrastructure, higher education institutions, international businesses and a property market that continues to attract overseas buyers. The firm said these factors have helped create a new development model for the district.
The analysis said the transition accelerated after Paphos was named European Capital of Culture in 2017. According to KPMG Cyprus, the designation enabled the city to build on its international profile, strengthen its outward-looking approach and establish the basis for a new economic reality.
Tourism and connectivity
KPMG Cyprus said tourism remains the main pillar of the local economy, but added that the sector has changed significantly and now supports economic activity throughout the year rather than only during the traditional holiday season.
The firm said Paphos continues to benefit from internationally recognised archaeological sites, beaches, natural landscapes, gastronomy and climate. It added that cultural, sports, conference and educational tourism have helped reduce seasonality and improve the resilience of the local economy.
KPMG Cyprus also highlighted the role of Paphos International Airport, describing it as a key gateway linking the district with dozens of European destinations and serving both visitors and investors.
Property and investment
The report said the district’s economy has become increasingly balanced, with tourism operating alongside professional services, education, technology and property development.
KPMG Cyprus said the property sector has become one of the strongest growth drivers, with Paphos emerging as Cyprus’ leading destination for foreign property investment. The firm said buyers from Europe, the Middle East and other international markets are choosing the district for investment or permanent relocation.