- Cyprus expects a loss of 30,000 tourists this season
- The hotel industry may see €25 million in lost revenue
- Proposals include extending the tourism season and boosting year-round hotel operations
- The industry struggles with a shortage of human resources
- 2024 underperforms compared to 2023 due to several factors
Cyprus Faces Significant Tourism Drop, Hoteliers Warn
The Cyprus Hoteliers Association (PASYXE) foresees a challenging season ahead. President Thanos Michaelides reported on Thursday that the local tourism sector is confronting an expected loss of 30,000 tourists and a staggering €25 million in revenue. This projection underscores the pressing need for strategic measures.
Key Proposals for Stability
Michaelides emphasized several critical initiatives to stabilize the industry. These include:
- Extending the tourism season
- Increasing year-round hotel operations
He asserted that these steps would minimize labour market seasonality, invigorate local businesses, boost state income, and attract more people to tourism careers owing to enhanced job security.
Human Resources and Economic Impact
A major concern is the glaring shortage of human resources. Estimates suggest around 53,000 people work in the hospitality sector, making up 11% of the workforce in Cyprus. These roles range from chefs and IT professionals to lawyers, illustrating the extensive influence of tourism on the broader economy.
Michaelides acknowledged that, compared to 2023, the year 2024 is tracking poorly, with lower hotel occupancy rates anticipated. He attributed this decline to several factors:
- Middle East crisis
- Ongoing Russia-Ukraine war
- Sluggish UK economy
- Timing of Easter holidays
- Reduced flights to Cyprus, resulting in 150,000 fewer arrivals
- June bankruptcy of a major German travel organizer
These challenges contribute to the anticipated drop in tourist numbers and lost revenue.
Limited Market Access
Michaelides also expressed concerns over restricted access to major tourist markets. He highlighted the industry’s heavy dependence on the British market and noted the low brand awareness in key Central European markets. Additionally, the US market, potentially the most critical, remains largely untapped.
The looming shortfall of 30,000 tourists and the significant financial loss call for urgent strategic intervention. Extending the tourism season and boosting year-round operations could offer a path to greater stability and growth for Cyprus’ vital tourism sector.
