Newsroom
The president of the Cyprus Hotel Association (PASYXE), Thanos Michaelides, has highlighted the urgent need to extend the tourist season and increase the number of year-round hotel operations. He estimates that Cyprus is set to lose around 30,000 tourists this season, translating to an estimated financial loss of €25 million.
In an interview with the Cyprus News Agency (CNA), Michaelides emphasized that extending the tourist season would help mitigate seasonal labor market fluctuations and boost both trade and state revenues. Moreover, providing stability for workers in the tourism sector would likely attract more individuals to tourism-related professions.
"Stabilizing employment in tourism not only benefits the industry but also strengthens the economy by reducing seasonality," Michaelides said.
However, Michaelides pointed out that a significant challenge remains the shortage of human resources. The tourism industry in Cyprus employs approximately 53,000 people, representing 11% of the island's workforce. These jobs span a range of technical and academic skills, including chefs, IT professionals, lawyers, accountants, engineers, and waiters, highlighting the industry's broad economic impact.
Michaelides noted that 2024 does not appear as promising as the previous year, with anticipated lower hotel occupancy rates. Several factors contribute to this decline, including the sudden crisis in the Middle East, the ongoing conflict between Russia and Ukraine, a slowdown in the UK economy, and the Catholic Easter falling in March. Additionally, a reduction in flights to Cyprus has resulted in about 150,000 fewer tourist arrivals.
The bankruptcy of Germany's third-largest tour operator in early June has further strained the sector, compounding the loss of tourists.
"Cyprus' tourism industry faces a substantial setback this season, with a projected loss of about 30,000 tourists and an estimated €25 million in revenue," Michaelides stated.
He also addressed the issue of limited access to key tourist markets, pointing out that Cyprus is heavily reliant on the UK market while having minimal visibility in central European markets like Germany and virtually none in the significant U.S. market.
"It is critical for Cyprus to expand its reach into these vital markets to ensure the long-term sustainability of our tourism industry," he concluded.
