- Cyprus risks losing 30,000 tourists this season
- Projected loss includes €25 million in revenue
- Extending the tourism season is crucial for stability
The Cyprus Hoteliers Association (PASYXE) President, Thanos Michaelides, has raised alarms about an anticipated shortfall of 30,000 tourists this season, resulting in a loss of €25 million in revenue. The need to extend the tourism season and ensure year-round hotel operations is critical. Doing so could mitigate labor market seasonality, strengthen local businesses, increase state revenue, and provide more stable career opportunities in tourism.
- Tourism Losses:
- 30,000 fewer tourists
- €25 million in lost revenue
Challenges and Strategic Importance
Michaelides noted a significant human resource challenge within the industry. Approximately 53,000 individuals, representing 11% of the country’s workforce, are employed in hospitality, showing tourism’s wide-reaching impact on the economy.
- Key Workforce Statistics:
- 53,000 employed in hospitality
- Comprises 11% of Cyprus’s workers
The industry’s struggle is evident in the projected underperformance in 2024 compared to 2023, primarily due to factors like geopolitical conflicts, a weakening UK economy, less favorable timing of Easter, reduced flight availability, and the bankruptcy of a key German travel organizer.
- Factors Affecting Tourism:
- Middle East crisis
- Russia-Ukraine war
- Slowing UK economy
- Timing of Easter
- Reduced flights to Cyprus
- German travel organizer’s bankruptcy
Limited Market Access
Michaelides pointed out the heavy reliance on the British market. He stressed the importance of increasing brand awareness in key Central European markets and expanding recognition in the US, which remains a critical yet untapped market.
- Market Reliance:
- High dependency on the British market
- Low awareness in Central Europe
- Minimal presence in the US market
Urgent Need for Strategic Actions
To counter these challenges, Cyprus must focus on attracting diverse market segments and promoting year-round tourism. Increased market diversification, better strategic planning, and enhancing international awareness could pave the way for a more resilient tourism sector in the future.