Larnaca's vibrant commercial heart is experiencing a stark dichotomy, with its culinary establishments flourishing amidst ongoing regeneration projects, while its retail sector grapples with a palpable downturn. As extensive urban renewal schemes continue to reshape the city centre, businesses on the front lines are navigating a challenging landscape, where the buzz of dining out contrasts sharply with the quiet struggle of shopkeepers.
The past year has seen a significant upheaval in Larnaca's commercial core, as two major regeneration initiatives have been underway, their impact rippling through the pedestrian thoroughfares and directly affecting shop accessibility. Dimitris Dimitriou, President of the Larnaca Commercial Centre Shopkeepers Association, candidly assessed the situation, noting, "In general, the movement at commercial centre shops was medium, and I believe this happened because of the works." This sentiment underscores the primary impediment for many retailers: the disruption caused by prolonged construction, which has inadvertently channelled footfall away from their storefronts.
In contrast, the catering sector, particularly businesses situated in Ermou Square and along the latter stretches of Zinonos Kitieos street, has reaped unexpected benefits. While the regeneration has presented obstacles for shops, it has also, paradoxically, created opportunities for eateries. Municipality-led festive events, designed to invigorate the commercial centre, undeniably boosted overall activity. These occasions, coupled with infrastructure improvements such as the resurfacing and temporary outdoor seating allowances on Ermou Street, have demonstrably increased patronage for restaurants and cafes, drawing people to these revitalised areas.
The completion of works on Ermou Street has offered a glimmer of hope for the retail segment. This specific development has not only facilitated greater movement through the area but has also spurred renewed interest from prospective tenants, with some previously vacant premises now earmarked for retail outlets. This success, however, highlights the uneven distribution of the regeneration's effects, demonstrating that while some areas are experiencing a renaissance, others remain in a state of flux.
Shopkeepers are acutely aware of the need to actively combat the adverse effects of the ongoing construction. Expressing gratitude for the public's resilience, Dimitriou implored, "We want people to know we are open and waiting for them to come. We ask people to support the commercial centre, which doesn’t lack anything and has nothing to envy from anywhere else." To proactively address the decline in footfall and to foster a more consistent flow of customers, the association is embarking on a strategic initiative. For 2026, plans are in motion to orchestrate at least one promotional event per month, a concerted effort to re-engage the community and draw shoppers back to the city centre's retail offerings.
The trajectory of these regeneration projects suggests a prolonged period of adjustment. The anticipated completion of works in Alkis and Acropolis Squares by July 2026 will inevitably affect Gr. Afxentiou Street, with a revised schedule for the conclusion of works within the commercial centre itself expected in the autumn of the same year. Consequently, shopkeepers are pinning their hopes on a tangible improvement in their business conditions during the latter half of 2026, once the extensive urban renewal is finally concluded and the commercial centre can fully realise its revitalised potential. Until then, the resilience and proactive engagement of Larnaca's shopkeepers will be paramount in their fight for survival.