Domestic use and irrigation are the two main water-consuming sectors in Cyprus. Irrigated agriculture accounts for about 69% of the total water demand whereas the domestic use, which also includes the tourist and industrial demands, corresponds to 25% of the total.
The table below presents the projected annual water demand in hm3 for the years 2005, 2010 and 2020. The estimates are based on the following assumptions for the per capita demand:
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215 l/cap/d for main towns,
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180 l/cap/d for villages, and
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465 l/cap/d for tourist demand.
Projected annual water demand by main sectors (2000 – 2020)
Although agriculture is the major water-consuming sector, it has a small contribution in the national GDP (2.9% in 2004). On the other hand, tourism activities which consume only about 6% of the total water demand, contributes to the GDP by over 20%.
As a result, and especially during drought periods, major conflicts arise between the urban and the agricultural sector, which in turn result to serious competition for the allocation of scarce water resources. The situation is worsened by the subsidized water price for irrigation water when compared to the full financial cost recovery for domestic supply, as it is strongly believed that this practice does not promote healthy competition and water conservation measures.