Today marks 20 years since the signing of the concession agreement between the Republic of Cyprus and Hermes Airports for the management of the international airports of Larnaka and Pafos—an agreement that ushered in a new era for the travel experience and for Cypriot tourism, leaving a strong imprint on the country’s broader economy. Through this landmark deal, the first and largest Public-Private Partnership (PPP) in the country, widely regarded as the most successful project of its kind (awarded “Best Transport Project in Europe” by World Finance in 2013), Cyprus gained two brand-new, state-of-the-art airports in Larnaca and Paphos, with an investment exceeding €640 million.
Over the past two decades, thanks to the efforts of Hermes Airports in collaboration with all tourism stakeholders—and despite successive major crises affecting global aviation—the country’s connectivity has been significantly strengthened. Today, Cyprus is connected to the entirety of Europe and the wider Middle East region. Most notably, passenger traffic across the two airports has nearly doubled, rising from 6.7 million in 2006 to 13.7 million in 2025. This growth has played a decisive role in establishing tourism as a strategic pillar of the Cypriot economy, contributing approximately 14% to GDP.
At the same time, Phase Two development projects at both Larnaka and Pafos airports are currently in full progress. With an investment of €170 million fully funded by Hermes Airports, the overall capacity of the two airports is being significantly expanded to meet the country’s long-term needs—even beyond the expiration of the current concession agreement. These upgrades respond to the evolving needs of airlines and passengers alike, promising an even more enhanced travel experience.
Overall, during these twenty years of airport management, direct revenues to the Cypriot state from concession fees have exceeded €715 million. In 2025 alone, the total direct and indirect contribution of airport operations to the national economy reached €789.4 million, making the aviation community one of the most vital sectors of employment in the country.
In a statement marking the 20-year milestone, the Chief Executive Officer of Hermes Airports, Ms. Eleni Kaloyirou, said:
“Today’s anniversary is a particularly meaningful milestone for us, as it gives us the opportunity to reflect on this journey and on the role, we have played as a consistent and reliable partner to the state. We have contributed decisively to the growth of the Cypriot economy and tourism, while effectively navigating every crisis that has arisen over time—turning challenges into opportunities for further progress and development. Through targeted partnerships and strategic initiatives, we have significantly strengthened Cyprus’s year-round connectivity. At the same time, our activities actively support the wider business community and employment, while Hermes Airports itself is recognized through numerous distinctions as an employer of choice, investing in our people and fostering a modern and supportive working environment. Guided by our extensive experience and expertise, and facing the creative challenge of completing the Phase Two development projects on time, we continue our work with even greater determination—aiming to further enhance the prospects and momentum of our country.”
