Cyprus’s tourism income climbed in the first nine months of the year despite an economic downturn on the island, official figures showed.

The jump in revenues suggests Cyprus is benefiting from turmoil in Arab states around the Mediterranean as Europeans seek a safer destination.

The improved tourism figure is one of the few bright spots for a struggling economy expected to experience zero growth this year, especially after heavily exposed Cyprus banks need to cope with a 50 per cent Greek “haircut”.

Revenue from the island key tourism sector reached €235.8 million in September against €220.5 million for the same period last year, recording an increase of 6.9 per cent, said the statistical service.

For the first nine months ending in September there was a bigger revenue rise of 14.4 per cent reaching €1.45 billion, against €1.27 billion in the same period a year ago. But tourism income for the first nine months is still down 1.1 per cent on 2008 levels.

Income from tourism accounts for around 12 percent of Cyprus’s gross domestic product.

Cyprus tourism revenue in 2010 improved 3.8 per cent on a year earlier, boosting confidence that the key sector can help steady the island’s shaky economy.