The economy of Paphos depends largely on tourism and there are four resorts in the district: Kato Paphos, Coral Bay, Latchi, and Aphrodite Hills. The largest by far is Kato Paphos which employs over half of Paphos' population.

Farming, especially banana, grape and tobacco cultivation, also contributes significantly to the economy of Paphos. Paphos has a 100 km (62 mi) water distribution network which irrigates 5,000 ha of land.

Paphos has the island's second international airport. Paphos Harbour is not important in terms of international trade as most shipping uses the harbour at Limassol. Paphos Marina has cultural and historical importance and is also used for fishing.

The city of Paphos (or Pafos) has developed into a major tourist centre as it enjoys the famous Mediterranean climate throughout the year. Home to an eye-catching fishing harbour it serves as a small Marina and a fisherman shelter, which houses 3000+ boats. The main harbour of Cyprus is in Limassol which attracts most of the trading activity.

The second largest international airport of Cyprus is in Paphos and therefore is now gaining new importance not just among tourists but also as a commercial centre. Many international airlines operate regular scheduled and charter flights to and from Paphos. Due to Turkish invasions and their illegal occupation of major tourist centres like Keryneia and Ammochostos, which lie in the Paphos district, the government and the private sector have made major investments. Economic development in Paphos is rapid, but among all of them, tourism is picking up fast.

While Kato Pafos is major tourist hub and most of the hotels and entertainments centres are located there, Ktima is a historical region.