CHRISTOS ANGELIDIS - CYPRUS CAN BECOME A 10-MONTH DESTINATION - TOURISM IS A NATIONAL ISSUE FOR OUR COUNTRY - Filenews 2/8 by Angelos Angelodimou
In an interview with “F' the General Director of PASYXE Christos Angelidis refers, among other things, to the current state of tourism, lists the moves that need to be made so that we are able to compete with the largest markets worldwide, and emphasizes the need to act proactively and not run behind the events.
We are already in the third and last month of summer. What is your impression at the moment, regarding hotel occupancy rates and last-minute bookings? Do you agree with the assessment of the Deputy Ministry of Tourism that we have returned to a stable trajectory?
As you know, this year started with very positive prospects, but the crisis in the Middle East has largely reversed this momentum, bringing a wave of cancellations and a slowdown in bookings. At the given time, the picture is clearly better, but we are still moving approximately 10-15% lower than in July and August 2025, which was a record year for tourism. Cancellations have returned to more normal levels and bookings are improving, mainly from countries in the region, such as Israel and the local market. We could say that we have entered a period of stabilization, but this should not be taken for granted. It is important not to look only at the average, since there are hotel units that record satisfactory performance, while others continue to operate below their potential. As long as the crisis in the Middle East continues and the environment remains volatile, challenges for tourism exist. We hope that the situation will normalize soon, focusing on covering losses to the extent possible and returning to 2025 levels in the new year.
Government handling
Do you believe that this crisis was handled correctly and promptly by the government?
Significant efforts were made by the State, both to maintain a significant part of the flight schedule that was and remains critical for our tourism industry, while we recognize that a keen interest was shown in the hotel sector. For our part, as PASYXE, we proceeded from the very beginning to capture the real picture through rolling surveys in collaboration with the Hellenic Institute of Tourism Research and Forecasting (ITF), communicating the findings on a weekly basis to the Government, in an effort to contribute to managing the effects of this crisis. The announcement of the Special Employment Support Plan in the Hotel Sector, which was implemented in April, gave a boost to hotel units. Several hotels opened their accommodations since March, in order to support the needs of the Cyprus Presidency of the Council of the European Union, at a significant cost to their budget as a result of the instability caused by the events in the British Bases and the crisis in the Middle East. However, we learn lessons from every crisis. The resilience of our tourism product depends to a large extent on timely planning. For this reason, and on the sidelines of the Annual General Assembly of PASYXE, which took place in July, we brought back an earlier proposal of the Association for the creation of a Crisis Management Team and an institutionalized Advisory Body, with the participation of representatives of the tourism industry and the Deputy Ministry of Tourism. The goal is to act proactively and not run behind the facts every time.
New strategy
For years, you have been arguing that there should be better coordination between all those involved, in order to draw up a new and updated tourism strategy, which on the one hand will give a clear identity to our product and on the other hand will achieve the goal of all-year-round tourism. We would like you to summarize your vision and suggestions for achieving the above.
We believe in our tourism product and that with appropriate actions we will be able to compete with the largest markets worldwide. We envision a tourism that is more resilient to external crises, which will be able to offer unique experiences to visitors, not only during the summer season. We believe that Cyprus can become a destination of at least ten months of tourist activity, provided that there is the necessary will and a unified plan. A prerequisite is the further strengthening of the country's flight program and the reduction of dependence on individual tourist markets on which we have relied over time. It is necessary to strengthen the country's advertising campaigns, aiming to penetrate economically strong markets. markets of Central and Northern Europe, as well as in the United States of America. Of decisive importance is the preservation of authentic Cypriot hospitality, which has been one of the strong advantages of Cyprus over time, investing more in the Cypriot worker, who has always been the face of our tourism product. The most important thing, however, is that all of this be integrated into a single national strategy, with specific goals, timetables and measurable results. We cannot operate in isolation. Tourism should be treated by all stakeholders as a national issue and this process requires constant and close coordination between the State, local authorities and the private sector.
In 10 services for the license
We would like your opinion in relation to the major issue of hotel licensing, which was recently highlighted by the Audit Service. On the one hand, there seems to be a labyrinthine bureaucratic process, which complicates the whole situation. On the other hand, however, there is also the issue of a number of illegalities by certain hotel units, which must be resolved in some way. How do you see a solution to this issue?
We must be clear. Compliance with the legislation is the obligation of each individual business. There can be no tourism development without rules, without controls and without ensuring quality and safety. As PASYXE, we encourage our members to complete the licensing procedures and meet their obligations. At the same time, we must also see the other side of the coin. The licensing process for hotel units remains extremely complex and time-consuming. It is not possible that in 2026, in a tourist destination par excellence such as Cyprus, a hotel business will be required to communicate with at least 10 different departments and services regarding licensing issues. Furthermore, the different dates of individual licensing cause the loss of countless manpower hours, which could be dedicated to the development of businesses and the tourism product we offer. The simplification of procedures through a Single Licensing Authority (one stop shop), a proposal that PASYXE has submitted in the past, will certainly accelerate the procedures and strengthen the State's efforts to attract new investments.
There is a lot of talk from hoteliers that a large percentage of arrivals do not translate into stays in hotel units, as a number of tourists are either channelled to Airbnb-type accommodations, or go to the occupied areas. To what percentage is this true? How should the Airbnb sector be regulated and what should be done about the issue of tourists moving to the occupied territories?
Equal treatment for all
This is indeed an existing issue, which must be addressed seriously. PASYXE is not against short-term rentals. What we are asking for is to ensure equal treatment for all. Hotels operate with specific licenses, inspections, tax obligations and requirements regarding safety and quality. The recent report by the Audit Service highlighted that there are issues with accommodations that do not appear in the registers or are advertised with inaccurate license information. This is unfair competition, which operates to the detriment of the legal owners of short-term rental accommodations and hotel units. The same rules should apply to everyone. In relation to the transfer of tourists to the occupied territories, this is an issue with political implications. It is a fact that thousands of visitors who arrive on our island through the legal airports of the Republic leave a negligible economic footprint, as they choose to stay in the occupied areas of our island. What we must ensure is that the tourism product of the Republic of Cyprus remains competitive, of high quality and unique and that visitors who come to Cyprus have reasons to take advantage of it.
It is a fact that the vast majority of tourists prefer the coastal areas for their holidays. Despite the efforts and significant investments made in recent years, Nicosia and the mountainous areas remain the poor relative. How can this change, possibly within the framework of a new strategy, as we mentioned above?
The issue is directly linked to the extension of the tourist season. We need to enrich our basic product, which is the sun and the sea, with new elements, such as conference, sports, cultural, wine tourism, agrotourism and other special forms of tourism that can be developed immediately and create demand beyond the summer months. We need to see Cyprus as a single tourist map and invest in more on the emergence of new areas that can offer visitors multidimensional experiences throughout the year. This, of course, also requires the upgrading of infrastructure, through the cooperation of the private and public sectors, as well as the provision of specific incentives to attract investors. Through such a plan, local communities will be significantly strengthened and new business opportunities will be created, and this concerns both urban centers, such as Nicosia, and mountainous and semi-mountainous areas. The most important thing, however, is that new and quality jobs will be created, seasonality in employment will be limited and the stay of Cypriots in the countryside will be strengthened. This is, therefore, a strategy that is not only about strengthening tourism, but also the overall economic and social development of the country.
The picture for hoteliers
In closing, I would like to ask you a different question. In the eyes of a large portion of citizens, hoteliers are a category of businessmen who make millions and yet constantly ask for incentives from the government. That they have high prices and do not prefer Cypriot tourists. I would like your position on the above.
This approach does injustice to the hotel sector and the people who invested a lot of money in the tourism industry, creating infrastructure with multiplier benefits for the Cypriot economy. The reality of the hotel sector is much more complex than most people can realize. We must remember that a hotel is a private business with very high operating costs that is called upon to ensure that it will have the necessary profitability to pay the salaries of employees, to invest in the upgrading of infrastructure, while it is also governed by a very strict operating framework. Hoteliers operate in a volatile environment. A good year can yield significant profits and a bad year can create significant losses that will be covered by the profits of the previous year. For example, many businesses use the revenues of a good year to cover losses from previous years, as happened for example with the coronavirus pandemic, but also now with the geopolitical instability in the region. And it must be understood that when we ask for support or incentives, we do not do it to subsidize hoteliers as entrepreneurs. The goal is to keep jobs and the sector competitive. We must not forget that tourism supports the country's economy over time and is one of the largest employers. As far as Cypriot visitors are concerned, PASYXE has repeatedly encouraged its members to offer attractive packages to the domestic market. And this is already being done by many hotel units, since the start of the summer season. I urge citizens not to just stick to the first image of a price, but to do their research and look for available offers, contacting directly the accommodations that interest them.
