Cultural Enterprises in Europe and Cyprus: Economic Analysis

The Theatre of Kourion (Curium), Cyprus

The European Union regularly monitors the role of culture in its economy through Eurostat’s official statistical programme. A recent report by Eurostat, Culture Statistics – Cultural Enterprises, provides a comprehensive overview of the economic importance of enterprises engaged in cultural activities. These enterprises are defined broadly to include publishing, printing, film and television production, broadcasting, design, architecture, translation, performing arts, museums, and other related activities. They exclude purely public administration and are framed within the “business economy,” meaning industry, construction and services, but not the non-market or purely governmental sphere. The report offers valuable insights into how cultural industries contribute to growth, jobs and innovation across the EU.

The European Union Context

Across the European Union, there were more than two million cultural enterprises active in 2022, representing about 6.3% of all businesses in the EU business economy. Together, they generated roughly € 199 billion in value added, or around 2.0% of the EU’s business economy. Their combined turnover exceeded € 500 billion, equivalent to 1.3% of all business economy turnover. These figures demonstrate that culture is not a peripheral activity but a structured and measurable part of the European economic landscape. As in other areas of the economy, most cultural enterprises are small or micro businesses, which means they are entrepreneurial, flexible, but also more vulnerable to shocks.

The Case of Cyprus

In Cyprus, the cultural sector plays a disproportionately strong role. Cultural enterprises account for approximately 5.4% of national business economy value added, the highest proportion recorded in the European Union. They also generate around 5.4% of national turnover, again far above the EU average of 1.3%. This makes Cyprus an outlier: while its economy is small in absolute terms, the contribution of culture relative to its business economy is significant.

In absolute terms, this translates into 4,662 enterprises with a total turnover of € 3.5 billion and a gross value added of € 965 million.

Cultural Segment	# Enterprises	Share
Architectural activities	839	18%
Creative, arts and entertainment activities	799	17%
Cultural education	744	16%
Specialised design activities	534	11%
Photographic activities	433	9%
Printing, recoded media, musical instruments and jewellery	379	8%
Translation and interpretation	321	7%
Motion picture and television, music; renting of video tapes and discs	235	5%
Retail sale of cultural goods in specialised stores	161	3%
Publishing (books; newspapers; journals and periodicals; computer games)	149	3%
Programming and broadcasting; news agency activities	52	1%
Libraries, archives, museums and other cultural activities	16	0%
Unspecified activities	0	0
Total	4,662	100%

The composition of cultural value added in Cyprus is unusual. Whereas in larger countries such as France cultural value is spread across film, television, architecture, design and entertainment, in Cyprus the sector is heavily dominated by publishing. More than three-quarters of cultural value added in Cyprus comes from publishing activities, which include newspapers, periodicals, books, journals, and increasingly, digital publishing and games.

Cultural Value Added by Activity: Cyprus vs EU Average

Category	Cyprus (% of cultural value added)	EU Average (% of cultural value added)
Publishing	75.7	19.0
Architecture	8.0	16.0
Design	5.0	13.5
Motion picture, TV, music	4.0	14.0
Creative arts & entertainment	5.0	27.0
Other cultural activities	2.3	10.5

Eurostat, “Culture statistics – cultural enterprises”

This concentration indicates both a strength and a vulnerability. On the one hand, Cyprus has a clear cultural industry with a measurable economic impact. On the other, the cultural economy is less diversified, meaning that other creative sectors remain relatively underdeveloped.

Cyprus Compared with Greece and France

When compared with Greece and France, Cyprus stands out. Greece has a relatively strong base of cultural enterprises, representing around 4.7% of all businesses in its economy, but their value added and turnover shares are closer to EU averages than to Cyprus’s exceptional figures.

Cultural Enterprises: Cyprus, Greece, France and EU Average

Country	Value Added (% of business economy)	Turnover (% of business economy)
Cyprus	5.4	5.4
Greece	2.0	2.0
France	1.8	1.8
EU Average	2.0	1.3

Eurostat, “Culture statistics – cultural enterprises”

France, with its vast and diversified cultural industries, has far higher absolute numbers of cultural enterprises and world-leading influence in film, design, museums, and performing arts. Yet, when measured as a share of the national business economy, culture accounts for only about 1.8% of turnover and a similar proportion of value added. This is lower than Cyprus, not because France lacks cultural power, but because its overall economy is so much larger and more diversified. Moreover, a large number of cultural assets in France, such as museums or opera houses, remain public sector organisations and are thus likely excluded from these statistics.

The comparison reveals an important point: culture plays a relatively greater economic role in Cyprus than in many larger economies. In practical terms, culture is not just an aesthetic or social asset, but one of the strongest contributors to Cyprus’s business economy. Greece sits between the two: richer in cultural history and artistic activity than most EU states, but economically more dependent on tourism and other service industries, which dilute the statistical weight of cultural enterprises when measured in Eurostat’s categories.

Implications for Cyprus

The data from Eurostat carries several implications. First, culture in Cyprus is a serious economic sector, not an afterthought. Its contribution to value added and turnover is the highest in Europe, and therefore deserves recognition in public policy, economic planning and investment priorities.

Second, Cyprus’s cultural economy is concentrated in publishing, suggesting both an area of strength and a need for diversification. Investing in film production, architecture, design, digital arts, and performance could help rebalance the sector, strengthen resilience, and create new opportunities.

Third, cultural enterprises in Cyprus, as in the EU more broadly, are mainly small or micro businesses. Supportive policy instruments should therefore focus on the needs of small enterprises: skills development, access to finance, digital transition, internationalisation, and stronger links with education and research.

Fourth of all, the links between culture and other economic sectors such as tourism and agri-food, should be obvious and worth strengthening. Culture enriches the tourism product and provides an authentic and durable channel to understanding both contemporary society as well as the historical heritage of a country. Heritage tourism is understood to create sustainable employment, particularly in rural and less-populated regions. The success of villages like Lofou, Kakopetria or Omodos (and many others) in attracting both national and international visitors, and the spillover effects in microenterprise creation and property investment, are evident.

From our perspective at ART.Cy, one of the greatest weaknesses in Cyprus is the lack of competitively-priced exhibition space. This affects every artist or multi-artist exhibition, and it also severely affects the Cyprus film sector. Despite very attractive tax incentives in Cyprus for the film sector, there is a total lack of indoor production sets and related venues in the Republic. This also affects the wider industry, such as conferences and events or, to a lesser extent, large indoor concert and theatre venues.

Conclusion

For Cyprus, culture is not simply heritage and tradition. It is a living, productive, and economically vital industry. Compared to both its neighbour Greece and to cultural heavyweight France, Cyprus demonstrates that even a small country can harness cultural industries to deliver a significant economic contribution. The Eurostat data underscores the need to continue investing in culture both for its vital social and identity value, but as a driver of economic growth, innovation, and sustainable development.

Philip Ammerman

Source:

Source: Eurostat, “Culture statistics – cultural enterprises”, Statistics Explained, last updated 20 June 2024. Available at: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Culture_statistics_-_cultural_enterprises