The commercial centre of Larnaca is going through one of the most difficult periods in its recent history, due to two large-scale projects, which are essential for its future and began at the end of 2024. This period, in particular, has seen construction work at its peak, with many active fronts and one major question: can shopkeepers hold on for another year?
City officials consider the projects in Alki and Acropolis squares, as well as the commercial centre, as the first step towards getting Larnaca’s heart beating again. They do, however, acknowledge that these projects alone are not enough to bring back the movement that was lost when the city’s landmark shops moved to the mall and other smaller ones closed down, especially on Ermou Street. This is why local authorities have drawn up a plan to revitalise the centre, assuring that their goal is to boost its commercial activity, not change its purpose.
The most significant part of this plan is to leverage Larnaca’s momentum, where demand has skyrocketed over the past year. The construction of new boutique hotels and tourist accommodation is considered a key factor in increasing the number of people in the city centre. Demand is very high, as shown by the data provided to “Phileleftheros” by the Municipality of Larnaca and sourced from the local District Self-Government Organisation (EOAL).
In addition to the approximately 25 hotels already operating in the city, there is demand for another 32 boutique hotels and small tourist accommodations. EOAL has recently issued 11 building permits, with three more electronic applications under review. Furthermore, seven urban planning permits have been issued and are awaiting building permits, while 11 more applications were recently submitted and are being reviewed for both building and urban planning permits. “It is positive that there is high demand, which is confirmed by the permits being issued. This will greatly help with the main objective, which is to increase the commercial activity of the centre,” said the mayor of Larnaca.
It is no coincidence that Larnaca is banking on increasing accommodation beds in the city centre, where hotels operate all year round and have contributed significantly to extending the tourist season. As the President of PASYXE (Cyprus Hotel Association) Larnaca, Marios Polyviou, explained, over recent years, the city centre has created its own tourist market with more than 800 beds. “These are hotels that work 12 months a year and attract their own type of tourist. Visitors come to get to know the city, visit its beaches and attractions, and experience its gastronomy,” he noted, adding that they do not have the same characteristics as visitors who choose the tourist area on Dhekelia Road. “The tourists in the city centre come all year round and a large number of them are repeat visitors. We hope that the addition of new units will bring more people, so that the urban centre, which has only been in decline in recent years, can be revitalised,” Mr Polyviou added.
Planning Incentives for Large Companies
Another area Larnaca is investing in is the presence of companies with a large number of employees in the city centre. According to Mr Vyras, “there are discussions about providing urban planning incentives to encourage large companies to relocate their offices to the city centre.” The mayor of Larnaca added that there is also increased demand from various businesses wishing to operate in the centre, and some have already rented spaces (advertising and tourism companies). “We don’t want the shops to change their purpose. We want them to remain commercial, but we are promoting the use of the upper floors to increase footfall. You can understand that if new hotels are created, tourists will be circulating, and the same will happen with the employees of large companies.”
When asked if incentives would be given for the return of large clothing stores to the centre, he noted that they have been in contact with them. “We are focusing on increasing the number of people in the commercial centre, and this is a great incentive for them to return,” he pointed out. He also expressed optimism for the future of the commercial centre. “No one can predict what will happen, but I am optimistic. The commercial centre of Larnaca has characteristics that others don’t. It’s next to the sea, has many hotels, and I believe it has a greater chance of the situation improving. We will fight for its recovery.”
“The Bet Is on How Many of Us Will Endure”
For the plan to work, the shopkeepers, who are experiencing a very harsh present, must endure. The President of the Commercial Centre Shopkeepers Association, Dimitris Dimitriou, stated that the centre is currently almost inaccessible, which is causing many complaints. These were raised at a recent meeting with the mayor. “It’s not easy for someone who doesn’t know the area to come here. We asked for proper signage, and they promised to provide it because there are also safety issues. We also have complaints about the contractor regarding the number of people working. However, he says that the right number of people are on site. We want them to stick to the schedules because people are getting tired, and we still have another difficult year ahead.”
He added that the shops’ turnover has significantly decreased, and they are fighting for survival. “I don’t have information on shops that closed down at the start of the projects. The bet, however, is on how many of us will endure,” he pointed out, expressing hope that the centre’s new look, along with the efforts being made to revitalise it, will bring the desired outcome.
So far, the end of Ermou Street and the section in Alki Square have been completed. According to information from the Larnaca Municipality, there are currently three active construction fronts. The first is on Grigori Afxentiou Avenue, which is causing major traffic congestion and will be completed in five months, while the second part of the avenue will take another six months. Furthermore, paving is expected to be laid by December 15 in the other two open sections, which are the beginning of Ermou Street and the end of Zenonos Kitieos Street.
In addition, the section in front of the Municipal Market will open next month. The goal is for all work affecting commercial shops to be completed by September 2026. The final section (from the Atrium Zenon hotel to the Ottoman Bank) is expected to start then, with an estimated completion date of February 2027. According to the Larnaca Municipality, the project currently has a justified delay of about two months due to unforeseen technical difficulties.
The two projects, which will cost over €14 million, are co-funded by the THALIA Programme and were awarded to the company Miltiades Neophytou Civil Engineering Contractors & Developers Ltd.