Newsroom
Cyprus’ restaurants and entertainment venues are feeling the squeeze this year, as more tourists choose to eat at home, order delivery, or rely on all-inclusive hotel packages instead of dining out. Despite a strong August, industry leaders warn that one good month isn’t enough to cover up deeper losses, rising costs, and growing uncertainty about the winter season ahead.
According to Kathimerini's Dorita Yiannakou, while tourist arrivals and revenues hit record highs this summer, the catering and nightlife industry saw a decline in turnover of up to 30% in many areas. Restaurateurs point to three main culprits: the surge in Airbnb-style short-term rentals where visitors cook for themselves, the popularity of all-inclusive hotel deals that keep guests on site, and the rising cost of food and energy that makes dining out less appealing.
Regional differences paint a mixed picture:
- Paphos recorded a 10% increase in August compared to last year, but June and July were down 30%, according to the local leisure association.
- Limassol also saw a 30% drop in restaurant turnover, with local tourists now providing the main lifeline since dependence on foreigners is limited to just 5%.
- Nicosia’s nightlife has all but dried up, with entertainment venues citing lack of regulation, fewer customers, and competition from illegal operators.
- Mountain resorts were quiet early in the summer but picked up around mid-August thanks to Cypriot holidaymakers. Some hotels plan to stay open until November, provided nearby restaurants do the same, a hopeful sign for year-round tourism.
Industry representatives say the sector is under pressure from every angle: reduced consumption, high operating costs, staff shortages, and a consumer shift toward “eating in.” Many argue that without political support and a clear action plan, the sector risks long-term decline.
A new catering and entertainment bill now before parliament is also stirring debate. While the government says the law will modernize outdated rules and support entrepreneurship, some industry leaders call it “disastrous,” claiming it restricts restaurant hours while giving advantages to banquet halls. Deputy Tourism Minister Costas Koumis insists the reform is meant to simplify regulations, cut red tape, and make the sector more competitive.
Looking ahead, industry officials fear autumn may mirror the weak first quarter of 2025, with losses of around 10% compared to last year. For many restaurateurs, the message is clear: a full August dining room doesn’t make up for an empty summer season.
