- Cyprus expects a loss of 30,000 tourists this season
- Predicted revenue loss of €25 million
- Call to extend tourism season and enhance year-round hotel operations
- Industry facing labour shortages
- Negative external factors include geopolitical tensions and economic downturns
- Limited access to major tourist markets is a significant issue
Projected Losses and Industry Challenges
The Cyprus Hoteliers Association (PASYXE) President Thanos Michaelides revealed alarming projections: the tourism sector faces a loss of 30,000 visitors and €25 million in revenue this season. He highlighted the need to extend the tourism season and enhance year-round hotel operations. According to Michaelides, this strategy would reduce labour market seasonality, support local businesses, increase state income, and attract more people to tourism careers by offering better job stability.
The industry also struggles with a significant labour shortage. About 53,000 individuals are employed in the hospitality sector, making up 11% of Cyprus’s workforce. These workers include chefs, IT professionals, and lawyers, showcasing tourism’s broad impact on the economy and job market.
Negative Factors Impacting Tourism in Cyprus
According to Michaelides, the outlook for 2024 is already less promising compared to 2023, with lower expected hotel occupancy rates. Multiple factors contribute to this decline, including:
- The Middle East crisis
- Ongoing Russia-Ukraine war
- A sluggish UK economy
- Easter’s timing
- Reduced flights to Cyprus (leading to 150,000 fewer arrivals)
- June’s bankruptcy of a significant German travel agency
These issues will lead to a shortfall of 30,000 tourists and a €25 million revenue loss this season.
Limited Market Access and its Consequences
Another concern is the limited access to crucial tourist markets. Michaelides pointed out that the industry heavily relies on the British market. However, brand awareness remains low in crucial Central European markets and is almost nonexistent in the US, arguably the world’s most vital tourist market.
Cyprus hoteliers face significant challenges this season, with a projected shortfall in tourist numbers and revenue. Addressing labour shortages, extending the tourism season, and expanding market access are crucial steps to mitigate these impacts and ensure the sector’s resilience. The need for immediate and strategic action has never been more urgent for the future of Cyprus’s tourism industry.
