- Tourism in Cyprus is experiencing a significant decline
- An estimated 30,000 fewer visitors
- Loss of about €25 million
- Tourism employs 53,000 people, 11% of the workforce
Tourism Sector Challenges
The tourism sector in Cyprus is bracing for a challenging year. An anticipated drop of 30,000 tourists translates into a severe financial setback, estimated at €25 million. Thanos Michaelides, president of the Cyprus Hotelier’s Association (Pasyxe), addressed these concerns in a recent statement to the Cyprus News Agency (CNA).
This downturn impacts the sector, which employs about 53,000 individuals, or 11% of the nation’s workforce. From chefs and IT specialists to lawyers and engineers, the industry supports a diverse array of professionals and plays a critical role in both the national economy and the labour market.
Factors Contributing to the Decline
Several issues contribute to the expected reduction in hotel occupancy. Ongoing crises in the Middle East, continued tensions between Russia and Ukraine, and the sluggish UK economy are significant factors. The early occurrence of Catholic Easter and a notable decrease in flights to Cyprus, leading to around 150,000 fewer tourist arrivals, compound the problem. Furthermore, the recent bankruptcy of Germany’s third-largest tour operator has worsened the situation.
Michaelides also highlighted that Cyprus’s tourism heavily depends on the UK market. Cyprus is minimally visible in significant Central European markets like Germany and almost none in the US, which is perhaps the most crucial market globally.
To mitigate these challenges, Michaelides proposed extending the tourist season and increasing the number of operational hotel units. He believes these measures would stabilize employment, boost trade, and generate more state revenue. Consequently, this stability would attract more professionals to tourism-related jobs, enhancing the overall workforce.
