Cypriots are in a state of panic as the gorgeous island country is trying to claw back its tourism numbers after 30,000 holidaymakers ditch it.
Cyprus is reportedly counting the cost of the £30million crisis with Cyprus Hoteliers Association president Thanos Michaelides revealing that the tourism sector is projected to lose thousands of visitors.
A slowdown in hotel bookings was noticed in May, with industry experts warning that the year may see a downturn in revenue for tourism-based businesses.
He highlighted the need to extend the tourism season and enhance year-round hotel operations, saying this would reduce labour market seasonality, support local businesses, and attract more people to tourism careers by offering better job stability.
The industry also has a significant labour shortage. About 53,000 individuals are employed in the hospitality sector, making up 11 percent of Cyprus’s workforce.
“This workforce includes a diverse range of professionals, from chefs and IT specialists to lawyers and engineers, making the sector a crucial part of the national economy and labour market,” he said.
However, there are many challenges to deal with this year, Michaelides said, which, ultimately, may result in a worse performance compared to 2023.
“The decline in hotel occupancy rates can be attributed to several factors,” Michaelides stated.
“These include the ongoing Middle East crisis, the continued tension between Russia and Ukraine, a sluggish UK economy, the early occurrence of Catholic Easter in March, and a reduction in flights to Cyprus—resulting in about 150,000 fewer tourist arrivals,” he added.
Additionally, the recent bankruptcy of Germany’s third-largest tour operator exacerbated the situation.
He also pointed out that a major challenge is Cyprus’ limited access to most potential tourist markets.
“It is widely known that our industry is heavily dependent on the UK market, while there is low visibility of Cyprus in important Central European markets such as that of Germany and almost no visibility in perhaps the most important tourism market in the world, that of the US,” he concluded.
Deputy Minister of Tourism Kostas Koumis said in May that tourist arrivals for the first four months of 2024 indicate that the island could achieve its goals for the year
Arrival statistics for January to April indicated an increase of 1.7 percent compared to 2023, marking the best first-fourth-month period ever recorded for the country’s tourism sector.
By June, arrivals were up by an annual 2.4 percent and exceeded 1.65 million. Arrivals in the first summer month rose by 5.5 percent compared with June 2023.
