In recent years the government of Cyprus has acted proactively to limit over-development on the island. A building moratorium on coastal development was enacted in 1989 along with stricter guidelines to regulate other types of construction. Tourism on a smaller scale is encouraged through the agrotourism programme, which provides funds for the restoration of houses in rural areas in preparation for their use as guest houses.

As elsewhere around the world, tourism plays a continually increasing role in the Cypriot economy. However, the natural resources of the island are limited. Through water conservation efforts, controlled construction of new tourist developments and measures to protect sensitive environmental areas, tourism can play an important role in helping to preserve the ecology of Cyprus.