million visitors, up from 2.39 million in 2011.
The last time arrivals to the holiday destination surpassed this figure was in 2005 when 2.47 million people visited.
A 42 percent jump in tourists from Russia contributed to the boost, reaching 223,861 visitors, while those from the island's biggest holiday market, Britain, fell 6.0 percent to 1.02 million.
There were fewer holidaymakers than in 2011 from mainstay countries Germany, down 8.5 percent at 157,890, and Greece, down 4.1 percent at 132,990.
Russia has cemented itself as the island's second biggest tourist market behind Britain while Germany is third, followed by Greece and then Sweden.
The biggest recorded drop over the year was in visitors from the Czech Republic, who were 28.4 percent fewer -- 14,741, compared to 20,576 in 2011.
In December 2012, total arrivals decreased 16.2 percent from 65,339 to 54,772 in the same month of 2011.
For January to September, income from tourism reached 1.61 billion euros ($2.14 billion) compared to 1.45 billion euros in 2011. Tourism revenue for 2012 will be announced on Tuesday.
Annual tourism revenue in Cyprus had risen to its highest level for three years in 2011, reaching 1.749 billion euros despite the financial crisis.
Holidaymakers to Cyprus hit a record high of 2.69 million in 2001, spending an unsurpassed 2.17 billion euros.
Income from tourism accounts for around 12 percent of Cyprus's GDP.
Cyprus tourism revenue in 2010 improved 3.8 percent on 2009's 1.49 billion euros, when the economy went into recession for the first time since 1974.
This year the economy is expected to shrink by an unprecedented 3.5 percent with the downturn continuing until 2015, the government forecasts.
Nicosia is still waiting for much-needed EU financial aid to help bail out its Greek-exposed banks and ailing economy.