Andreas Tsouloftas: We welcome the government's €660m initiatives for Limassol but, without timetables, they are not enough

Andreas Tsouloftas, President of the Limassol Chamber of Commerce and Industry (LCCI), outlines the systemic issues facing Cyprus’ second-biggest city and its untapped potential to become more globally competitive.

From traffic to technology, he argues, bold action is long overdue.

What is the most pressing challenge facing Limassol’s business community?

Undoubtedly, it’s traffic congestion. Over the past decade, the number of vehicles entering the city via the motorway has doubled, from 45,000 to 90,000 per day, yet we haven’t seen any major structural solutions delivered. A northern bypass – the peripheral road – has been under discussion for years. It would divert traffic across the city, relieving pressure from the roundabouts and the core road network but we’re now being told that it might take another 10 years. Other key arteries are missing, such as a vertical road connecting the Nicosia entry point directly to the seafront. That link is vital, especially with two major malls planned for that area. Without proper road access, it’s unworkable. As a Chamber, we have objected to the issuing of commercial permits before that road is built but we haven’t received any design timetable. And this is what we keep emphasising: projects without timetables and budgets are just ideas. We thank the President for visiting Limassol and engaging with our proposals. He responded to a letter we sent in February, listing the top-priority infrastructure projects but, while he acknowledged our concerns, we have not received any firm dates – no budgeting timeline, no start or end dates. That’s deeply concerning.

Let’s talk about the Technology Park. Why is this project still stalled?

This project was first discussed in 2001. In 2015, we formally reactivated the discussion with the Government and managed to get political backing. In 2023, we even secured Cabinet approval for a public tender process. A leading consultancy was contracted to prepare the tender documents. But this is where the state must step up. If an investor gains access to that site today, it could take 10 to 15 years just to secure the necessary permits. That kills momentum. What’s needed is for the Government to pre-license the site, invest around €10 million in fencing and roads, and increase the building coefficient from 20% to at least 40% to reflect the smaller footprint. Add to that a requirement that the winning bidder must have international experience managing a tech park – then you’ve got an investable proposition. The park will also be strategic for the tech industry, which is the fastest-growing sector of the economy – up 40% annually for the past five years. It now contributes around 15% of national GDP and it’s resilient; it doesn’t depend on seasons or geopolitics. On top of that, it has helped develop local talent and we are now seeing a growing number of young, local firms. As a Chamber, we’ve created a dedicated committee to support this sector and promote Cypriot tech entrepreneurship.

Despite some temporary interventions, structural issues around Limassol Port tariffs persist, from high costs to contract-related distortions. What’s going wrong there?

The 2016 privatisation brought real improvements in service, which we welcomed. However, we do not have access to the concession agreement, despite repeated requests. We believe that the revenue percentage taken by the Government is too high and that has forced the operators to raise prices by over 300%. Worse, there’s no transparency about how price hikes are calculated. We expected the new operators to bring in additional throughput via their international networks but that hasn’t happened. Without more volume, high costs fall on importers and ultimately the consumer. Unfortunately, without access to the agreement, we’re limited in what we can do.

The President recently announced €660 million in initiatives for the Limassol district – spanning SMEs, housing, infrastructure and health. What’s your view on these plans and what needs to happen to ensure they deliver tangible results?

We welcome them but, without timetables, they are not enough. The President announced these funds but we want to know what’s budgeted for this year, next year and the year after. If these projects are going to be stretched over 10 years, that’s not good enough. I’m preparing a follow-up letter now. We’re also asking for focused meetings: one with municipal leaders to address major urban upgrades and another with district stakeholders for smaller projects.

What other infrastructure priorities are at the top of your list?

Let’s start with the Limassol Museum. It’s outdated, under-visited and closed at weekends. There were plans for a new facility but they stalled. The latest proposal is to expand it by connecting it to the nearby Limassol Municipal Gardens by a raised walkway. Whether that meets the needs of a modern museum remains to be seen.

Then there’s the Tsirion Stadium, which has become unusable. It leaks, lacks permits and no longer meets safety standards, yet it could attract international sports tourism, especially in the off-season. Similarly, the Pentakomo solid waste treatment plant is underperforming and creating a daily nuisance for nearby residents. The liquid waste plant is also unreliable and risks polluting the Polemidia Dam. We’re also facing another water supply shortage. Temporary desalination units may get us through this summer but a permanent solution is overdue. If water gets cut again, as it did in the past, it will damage our economy and our reputation.

Then, we have Limassol General Hospital, which needs to be upgraded and expanded. We’ve heard that it’s been allocated €25 million but, again, no dates and no clarity on when work will start or finish. We’re pushing for answers. Another is the Limassol Seafront Walkway which, although it is a key part of the city’s identity, has been degraded. Some sections are missing, lights don’t work and vegetation is overgrown. It was built over 10 years ago and the design didn’t account for wave impact. It needs serious repair. The President has announced support, but we need to know when.

On the upside, the expansion of the Cyprus University of Technology (CUT) is progressing well. It has received 60,000 square metres for student housing in the Berengaria area of Polemidia and another 30,000 for a mini tech park, which will also act as an accelerator/incubator. We hope that CUT will climb in the the international rankings as a result – and we want to keep it based here in Limassol.

You’ve championed the revitalisation of the Aktaia Odos area. What’s your vision for that space?

We see it as Limassol’s future financial district: a green, walkable urban boulevard with high-rise buildings, dedicated bike lanes and pedestrian zones. But first, the area needs clearing. Three key marine-related businesses will be relocated to the Vasilikos port extension. Other small workshops can move to industrial zones. Once cleared, the beach must be restored, the master plan finalised and designs tendered. It’s a five-year project at best but one that could transform the city.

Will that transformation make Limassol more globally competitive?

By far. It will attract new investment, ease pressure on the centre and create space for the tech industry to grow. But we must act fast. Some tech firms are already struggling to find office space or schools for their employees’ children. We need to support this growth because if we don’t, we risk losing it. As a Chamber, our job is to reflect the concerns of our members and advise the Government accordingly. Limassol generates nearly 50% of Cyprus’ GDP, but it’s near the bottom in terms of public investment. We owe it to our city – and the country – to align private dynamism with public action.

This interview was first published in the June issue of GOLD magazine. To view it click here