Larnaca's central commercial district is currently exhibiting a striking contrast, with its dining establishments thriving despite ongoing urban regeneration, while the retail sector experiences a noticeable decline. As ambitious city centre renewal projects continue to transform the urban landscape, businesses operating in these areas are navigating a complex environment. The lively atmosphere surrounding restaurants starkly differs from the subdued struggles faced by many local shopkeepers.
The past year has brought considerable change to Larnaca's commercial heart, primarily due to two substantial regeneration initiatives. These projects have significantly impacted pedestrian flow and direct access to shops. Dimitris Dimitriou, President of the Larnaca Commercial Centre Shopkeepers Association, provided a candid assessment, stating, "Generally, footfall in commercial centre shops has been moderate, and I believe this is a direct consequence of the ongoing works." This sentiment clearly highlights the primary obstacle for numerous retailers: construction disruptions that have unfortunately diverted potential customers away from their premises.
Conversely, the catering industry, particularly businesses located in Ermou Square and along the latter sections of Zinonos Kitieos street, has unexpectedly benefited from these developments. While the regeneration has posed challenges for shops, it has also, somewhat paradoxically, created new opportunities for eateries. Municipality-organised festive events, designed to stimulate activity in the commercial centre, have undoubtedly contributed to increased overall engagement. These occasions, combined with infrastructure enhancements like street resurfacing and temporary outdoor seating permits on Ermou Street, have demonstrably boosted customer numbers at restaurants and cafes, drawing people to these revitalised urban spaces.
The recent completion of works on Ermou Street has offered a ray of hope for the struggling retail sector. This particular development has not only improved accessibility throughout the area but has also stimulated renewed interest from potential tenants. Several previously vacant units are now earmarked for new retail outlets, indicating a potential shift. This positive outcome, however, underscores the uneven impact of the regeneration efforts, showing that while some districts are experiencing renewal, others remain in a state of uncertainty.
Shopkeepers are keenly aware of the necessity to actively counteract the negative consequences of the current construction. Expressing appreciation for the public's perseverance, Dimitriou urged, "We want people to understand that we are still open and eagerly await their visits. We implore the public to support the commercial centre, which possesses all the necessary offerings and has nothing to be ashamed of compared to any other location." To proactively address the reduction in footfall and to cultivate a more consistent stream of patrons, the association is implementing a strategic plan. For 2026, they intend to organise at least one promotional event each month, a deliberate effort to re-engage the community and entice shoppers back to the city centre's retail offerings.
The projected timeline for these regeneration projects suggests an extended period of adaptation. The anticipated conclusion of works in Alkis and Acropolis Squares by July 2026 will undoubtedly affect Gr. Afxentiou Street. A revised schedule for the completion of all works within the commercial centre itself is now expected in the autumn of the same year. Consequently, shopkeepers are placing their hopes on a significant improvement in their business conditions during the latter half of 2026, once the extensive urban renewal is finally finalised and the commercial centre can fully realise its revitalised potential. Until then, the resilience and proactive commitment of Larnaca's shopkeepers will be crucial in their ongoing efforts to ensure business survival.