The Cyprus Hoteliers Association (PASYXE) President Thanos Michaelides on Thursday said the industry is facing a projected loss of 30,000 tourists and €25 million in revenue this season.
Michaelides emphasised the importance of extending the tourism season and increasing year-round hotel operations. He argued this would reduce labour market seasonality, boost local businesses and state income, and attract more individuals to tourism careers due to increased job stability.
PASYXE’s President also added that the industry is struggling with a lack of human resources. According to estimates, roughly 53,000 people are employed in the hospitality sector, comprising 11% of Cyprus’s workers.
These include chefs, IT professionals, lawyers, and others, reflecting tourism’s significant impact on the broader economy and job market, he said.
Michaelides acknowledged that 2024 is underperforming compared to 2023, with anticipated lower hotel occupancy rates. He attributed this decline to several factors: the Middle East crisis, the Russia-Ukraine war, a slowing UK economy, the timing of Easter, reduced flights to Cyprus (leading to 150,000 fewer arrivals), and the June bankruptcy of a major German travel organiser.
These factors are projected to result in a 30,000 tourist shortfall and €25 million in lost revenue for the current season.
Limited access to major tourist markets was another concern raised by Michaelides. “Our industry relies heavily on the British market,” he said, “while brand awareness is low in key Central European markets and virtually nonexistent in the US, arguably the world’s most important tourist market.”
