Cyprus shipping enter 2026 in stronger shape, says minister

Shipping Deputy Minister Marina Hadjimanolis on Monday said that Cyprus’ maritime sector enters 2026 in “stronger shape”, having overcome recent disruptions, and has further bolstered its global standing.

Indeed, shipping continues to play a central role in the economy, now contributing more than 7 per cent to Cyprus’ gross domestic product.

Speaking to Philenews, Hadjimanolis said the Deputy Ministry of Shipping is implementing a targeted strategic plan focused on upgrading services and more systematically promoting the competitive advantages of the Cyprus ship registry and the wider maritime cluster.

“The results are impressive,” said. “The Cyprus ship registry has grown steadily over the last two years, recording a 21 per cent increase since September 2023.”

“At the same time, the contribution of ship management to GDP now exceeds 5.5 per cent,” she added.

In an earlier interview with the Cyprus Mail ahead of Maritime Cyprus 2025, Hadjimanolis placed that growth in a broader international context, pointing to Cyprus’ expanding presence in high-level global shipping forums.

“Cyprus being the only EU country represented at the recent Conference in Jeddah shows the recognition and respect our country enjoys as a reliable maritime partner,” she said, describing her participation as the sole EU minister on a high-level ministerial panel as “a true honour but also a clear signal of Cyprus’ credibility and active presence in the wider Gulf region”.

She also emphasised Cyprus’ geographic role as a connector between regions.

“As I underlined during my intervention, Cyprus lies at the northeast edge of Europe but is also very close to the Arab world, making Cyprus a natural bridge between the two regions,” Hadjimanolis said, adding that such meetings are “of great value” in strengthening bilateral cooperation with Saudi Arabia and other regional players.

“Cyprus must build on these meetings to create the right conditions for closer collaboration with these countries in the field of shipping, advancing mutual interests and reinforcing our role as a trusted maritime partner,” she said.

Those high-level contacts, she added, also provided a platform to support Cyprus’ candidacy for re-election to the International Maritime Organisation (IMO) Council, a goal the country has since secured.

“Cyprus’ re-election to the IMO Council is particularly important, especially under the current geopolitical conditions and the challenges facing global shipping,” Hadjimanolis said, noting that Cyprus placed seventh in the 2025 elections, compared with 12th place in 2023.

Addressing competitiveness more broadly, she acknowledged the pressures created by rising costs, regulatory change and geopolitical uncertainty, but said Cyprus’ approach remains focused on stability and adaptation.

“Despite the challenges posed by rising operational costs, evolving regulatory frameworks and geopolitical uncertainties, Cyprus remains committed to maintaining and enhancing its competitiveness in the global maritime sector,” she said.

“Our strategy focuses on proactive regulatory adaptation, investment in digitalisation and sustainable shipping practices, and targeted incentives to attract and retain international shipping companies,” she added, pointing also to continued investment in maritime education and training.

Registry growth remains a central priority. Speaking previously to the Cyprus Mail, Hadjimanolis said the Cyprus Ship Registry has recorded a “considerable increase of 20 per cent in terms of gross tonnage”, reaching its highest level in two decades, while the number of companies under the tonnage tax system has increased by 15 per cent.

“Our aim is not to compete against rival flags, but rather to strengthen our registry and promote Cyprus as a reliable partner on the global maritime stage,” she said.

Sustainability is another core focus. “The global maritime industry is at a crucial turning point,” Hadjimanolis said, arguing that the transition to low- and zero-carbon technologies is among the most pressing challenges the sector faces.

“That is why the Shipping Deputy Ministry, as of January 2024, provides shipowners of Cyprus and community ships the eligibility to receive up to a 30 per cent reduction in annual tonnage tax for each vessel that shows proactive measures in minimising its environmental footprint,” she said, describing the scheme as a clear financial incentive to invest in greener technologies.

Industry engagement remains equally important. Hadjimanolis described Maritime Cyprus 2025 as a key platform for dialogue and visibility.

“Maritime Cyprus represents an important platform for showcasing Cyprus’ maritime know-how and cluster, as well as engaging with key stakeholders from the global shipping community,” she said.

“A successful conference will result in stronger international partnerships, clearer direction on sustainability and competitiveness, and renewed global recognition of Cyprus’ role in unlocking the future of shipping.”

Looking ahead to Cyprus’ Presidency of the Council of the European Union in the first half of 2026, Hadjimanolis said shipping will be firmly placed on the European agenda.

“Our key priority will be to strengthen the role of seafarers, who remain the backbone of international trade and maritime transport,” she said, adding that emphasis will be placed on education, skills and women’s participation.

To that end, Cyprus is preparing a declaration to be discussed and adopted during the Informal Meeting of EU Ministers responsible for maritime affairs in Nicosia in April 2026.

“This declaration will serve as a joint European commitment to empower the next generation of seafarers to lead a modern, resilient and inclusive maritime sector,” she said.

That strategic approach also extends to cruise tourism. “The Government has recognised the great potential and future of the cruise sector,” Hadjimanolis said, noting that a National Strategy for Cruise Tourism was approved last October.

“Through the implementation of the national strategy and collective actions by all stakeholders, Cyprus will become an attractive and competitive cruise destination,” she said.

In practical terms, 2025 marked a year of stabilisation. Cruise ship arrivals rose by around 30 per cent compared with 2024, while Limassol recorded 139 confirmed calls, including 26 home-porting itineraries.

“The continuation and strengthening of Marella Cruises’ home-porting itineraries in Limassol is particularly positive,” Hadjimanolis said, referring to the 30 calls planned for 2026, starting on April 1.

Further strengthening Cyprus’ cruise profile, Limassol has been selected to host the 71st General Assembly of MedCruise in the autumn of 2027, an event expected to bring together more than 200 senior executives from cruise companies, port authorities and tourism institutions.