Traffic Gridlock is “Choking” the Economy

“Traffic congestion is the result of choices. And it can only be addressed through a new approach,” says transport expert Andreas Markides.

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Nicosia ranks among the most congested cities in Europe, with drivers needing up to 40% more time to complete a journey during peak hours, study says.

YIOTA HADJICOSTA

 

Stress, tension, frustration. Driving in Cyprus has become a daily ordeal. Drivers are trapped in queues, losing time, fuel, and patience. But behind the irritation and fatigue lies a crisis of far greater dimensions, one that touches the economy, public health, the tourist experience, and ultimately the sustainability of the country. “Traffic is not a simple practical problem. It is structural and affects key pillars of development and daily life,” says transport expert Andreas Markides, former Director of Urban Transport in the UK, warning that Cyprus risks facing severe and permanent consequences if immediate measures are not taken.

661 Cars per 1,000 Inhabitants

Figures reveal a reality that shows little sign of changing in the coming years unless radical reforms are made. Over 80% of daily trips in Cyprus are made by private car, while public transport use barely reaches 2–3% in urban centers. The country registers 661 cars per 1,000 inhabitants, one of the highest rates in the European Union and significantly higher than countries with far more extensive road networks and larger population densities.

Dependence on the private car is absolute and, as Markides explains, this one-dimensional choice inevitably leads to congestion, wasted time, and costs that may not be immediately visible but in the long term weigh heavily on society and the economy.

A recent report by the TomTom Traffic Index 2024 ranks Nicosia among Europe’s most congested cities, with drivers needing up to 40% more time to complete a trip during peak hours.

Drag on GDP

Traffic is not just a matter of inconvenience. It has a serious economic footprint. Based on international methodologies for “external transport costs,” the overall burden for countries with similar conditions can reach 2–3% of GDP. These are losses linked to delays, lost productivity, excessive fuel consumption, vehicle wear and tear, road accidents, health costs, and environmental degradation.

As Markides notes, “Congestion strangles the economy slowly but steadily. We see it in lost work hours, delayed deliveries, fatigued workers, and the health impacts of pollution. These do not immediately show up in accounting books, but they are enormously costly for society as a whole.”

Green Tax in 2027

Adding to the burden are high fuel prices, with Cyprus often among the most expensive markets in the Eurozone. This makes transportation costs even heavier for households.

In countries like Denmark or Sweden, citizens spend proportionally far less, since a large share of their trips are by metro, tram, bicycle, or even on foot.

Meanwhile, from 2027, a separate emissions trading system will be introduced in Europe for fuels used in road transport. The costs will be borne by fuel import companies and passed on to consumers. The more conventional vehicles are used, the higher the cost. For Cyprus, this could reach or even exceed 15 cents per liter, significantly raising mobility costs.

Investments at Risk

Even more worrying is the deterrent impact on investments. Technology, tourism, and education companies do not assess a city only by economic indicators, but also by the quality of life it offers.

“When the city of Eindhoven in the Netherlands prepared a strategy for attracting investment, the first conclusion was simple: growth would only come with improved quality of life. Schools, parks, cycleways, less traffic. Quality builds economies,” Markides stresses.

It is no coincidence that multinationals often turn to cities like Dublin, Barcelona, or Vienna — urban centers with advanced mobility infrastructure and alternatives. As sustainable mobility becomes the norm worldwide, if Cyprus fails to get its traffic crisis under control, the chaos and lack of transport options may soon become a deterrent for foreign investors, no matter the country’s competitive advantages in taxation, climate, or safety.

Health Under Pressure

Traffic stress also takes a toll on public health. Citizens live daily with the anxiety of delays, loss of free time, while air pollution and noise have proven effects on the human body.

World Health Organization studies link exposure to high levels of air pollution with increased cases of asthma, cardiovascular disease, and premature death. In Cyprus, where sunshine and heat intensify emissions, daily car commuting multiplies the risks. As Markides points out, it is no coincidence that cities like Utrecht set one main criterion for every project: “Does it improve citizens’ health?” If the answer is no, the project is rejected.

Pollution Also Costs

According to Nicosia’s Sustainable Mobility Plan, the annual cost of air pollution from passenger vehicle traffic alone is estimated at €142,000 per day, with the annual cost of air pollution in the urban areas of Nicosia reaching €52 million.

Road to the Future

International experience shows that solutions exist. In Denmark, only one-third of trips are made by car thanks to extensive networks of cycleways and public transport. In Vienna, over 60% of citizens hold an annual pass for the metro and tram, at the low cost of just €1 a day.

In Cyprus, the introduction of smart buses, the creation of rapid public transport corridors, the strengthening of micromobility (electric bicycles, scooters), and the construction of modern sidewalks in urban centers could yield significant results. Yet Cypriots remain reluctant to give up the wheel.

That will only happen when governments take political responsibility and integrate modern public transport into the traffic system in a way that truly facilitates citizens and enhances their quality of life. After all, who will leave the comfort of their car to take a bus if that bus journey takes much longer?

As Dr. Markides emphasises, “Traffic congestion is the result of choices. And it can only be addressed through a new approach.”

Not the Fault of Pedestrian Streets

The decline of urban high streets is not a Cypriot but a global phenomenon, which intensified after the pandemic. Experts stress that the cause is in no way linked to road changes, pedestrianisations, or restrictions on vehicles. For example, in Nicosia, the city’s geographic division makes it a “periphery” rather than a centre.

The solution, according to experts, is not to bring cars back, as some are demanding for Makarios Avenue in Nicosia, but to reposition the city center as a space for living, working, leisure, and experience, with quality public spaces.

In this context, they point to the debate over pedestrianising Oxford Street in London as a tactic to reverse further decline of the street and area. Insisting on traditional retail models, experts note, which have already been replaced by profound and irreversible changes in consumer practices such as online shopping, is unrealistic and cannot justify turning a revitalized pedestrian street back into a traffic road.

 

 

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