Cancellations of tourist bookings for this summer have almost stopped, but the losses are not being replaced, hoteliers say.
The pace of new reservations remains significantly below last year’s levels, leaving the hotel industry facing a difficult season, according to the Cyprus Hotels Association PASYXE.
Christos Angelides, President of PASYXE, told Phileleftheros that the sharply reduced rate of summer bookings is the industry’s most pressing concern. Other Mediterranean destinations including Spain, Greece, and Portugal are also trailing last year’s figures, he said, but Cyprus has fallen considerably further behind. Three factors have combined to produce this outcome: the island’s name has been directly associated with the Middle East conflict; many countries issued travel advisories; and the drone strike on the British Bases received wide and sustained television coverage across Europe.
Easter occupancy told a similar story. Hotels averaged between 25% and 45% over the holiday period, compared with 60% to 70% last year, with some properties having reached 80%. Angelides attributed last year’s strong performance to an exceptional 2024 that had carried into 2025, a momentum that has now been broken. He noted that Easter is not traditionally a strong hotel period for Cypriots. “They prefer travel abroad or family gatherings,” he said.
Industry professionals are calling for a new meeting with the government, following a previous session held under the President of the Republic. Their argument is straightforward: it is already April, conditions remain difficult, and joint public and private sector efforts to communicate the real situation in Cyprus to foreign markets must be stepped up immediately. The campaign should work on two fronts, they say: making clear that Cyprus is a safe destination where daily life continues normally, with no direct risk from the Middle East conflict; and reminding tourists and tour operators of the island’s enduring appeal. Hotels are already running social media campaigns and sending sales representatives abroad, but the broader promotional effort needs to be scaled up and sustained throughout the year.
Employment support scheme
With most hoteliers not expecting their turnover to reach 60% of last year’s equivalent figures, Angelides said he expects the Ministry of Labour’s special employment support scheme to be widely used across the sector.
The scheme covers hotels that were in operation between April 1 and April 30, 2026, and were open to businesses that recorded or projected a turnover reduction of more than 40% in April 2026 compared with April 2025, or that had occupancy below 60%. It covers the costs of up to 80% of a business’s employees. Each eligible employee receives an allowance equivalent to 30% of their monthly salary, up to a maximum of €1,324, with the employer required to top up the remainder. The supporting data must be prepared by the business’s accountant and confirmed by an approved auditor.
Read more: