President announces €10 Million boost for Cyprus tourism

President Nikos Christodoulides announced a €10 million increase in the 2025 budget for the Deputy Ministry of Tourism to enhance Cyprus's international promotion. Speaking at the General Assembly of the Cyprus Hotel Association (CHA), he also unveiled a five-year plan to mitigate seasonality in the tourism sector.

The President acknowledged the difficulties faced by the hotel industry, including the geopolitical instability in the Middle East, the ongoing war in Ukraine, economic recessions in Europe, and issues in the aviation sector. He expressed confidence in the industry's resilience and assured that the government is closely monitoring these developments and responding to industry concerns.

He also emphasized the completion of a long-term plan to train workers in hotels that are partially or fully suspended. This initiative aims to increase the number of year-round operating hotels, creating more stable jobs and extending the tourist season.

President Christodoulides highlighted the benefits of a rebranding campaign designed to restore Cyprus's international reputation. He also mentioned the establishment of a Strategic Dialogue between Cyprus and the United States, which could enhance collaboration opportunities in tourism.

An airline representative from the US is currently in Cyprus to discuss the possibility of direct flights. While details remain undisclosed, the President indicated that efforts are ongoing.

President Christodoulides announced the opening of a Diplomatic Mission in Kazakhstan in 2024 to attract tourists from the region. Additionally, a diplomatic mission in Armenia is set to be established in 2024.

Alexandros Vassilikos, President of the European Association of Hotels, Restaurants, Bars, and Cafés (HORTEC), announced that HORTEC's General Assembly will take place in Cyprus in October 2025. This event will bring national organizations and European officials to the island, providing an excellent opportunity to lay the groundwork for tourism policy during Cyprus's EU Presidency.

CHA President Thanos Michaelides stated that 2023 was not a successful year for the hotel industry in terms of profitability. Despite good revenue performances, increased operational costs from energy prices, labor, and supplies, coupled with high borrowing levels and rising interest rates, negatively impacted profitability.

Michaelides predicted lower annual occupancy rates in 2024 compared to 2023. He pointed to the Middle East crisis, the war in Ukraine, the UK economic slowdown, and reduced flights to Cyprus as significant concerns. The bankruptcy of Germany's third-largest tour operator, causing an estimated €25 million loss to Cypriot tourism, was also highlighted.

Finally, Michaelides stressed the urgent need for a roadmap to modernize Cyprus's tourism product.

[With information from CNA]