Since the late 20th century, the Kythirean economy has largely focused and, in the process, has become dependent on tourism, which provides the majority of the island's income, despite the fact that Kythira is not one of the most popular tourist destinations in Greece. The popular season usually begins with the Greek holiday of Pentecost at the end of May, and lasts until the middle of September. During this time, primarily during August, the island's population will often triple due to the tourists and natives returning for vacation. Dependence on tourism has resulted in increased building activity in many of the island's villages, mostly for commercial purposes (hotels and hospitality facilities, shops etc.), but also secondary homes; prominent examples are Agia Pelagia and Livadi, both of which having witnessed significant growth in their size since the early 1990s.
Minor sources of revenue are thyme honey, famous within Greece for its rich flavor, as well as some small-scale cultivation of vegetables and fruit and animal husbandry that is, nevertheless, increasingly restricted to local consumption.
Only five of the island's villages are on the coast (Platia Amos, Agia Pelagia, Diakofti, Avlemonas, & Kapsali). During July and August, several traditional dances will be held in various villages. These dances usually attract the majority of the island's population, the biggest of which are the festival of 'Panagia' in Potamos on the 15th of August, and the wine festival in Mitata on the first Friday and Saturday of August
