Cyprus hotel bookings for the summer are running 30% below last year’s levels, with average occupancy currently sitting at 40-50% compared with 75% at the same point in 2025, the Cyprus Hotels Association has warned.
The slump follows months of mounting pressure on the island’s tourism sector triggered by the war in the Middle East. Rating agency DBRS Morningstar warned in April that Cyprus was experiencing a more intense decline in travel demand and higher cancellation rates than Greece, citing the island’s geographical proximity to conflict areas. The association had already recorded a near 40% drop in March bookings and a similar reduction in April.
Christos Angelides, Director General of PASYXE, told Phileleftheros the figures left little room for optimism and that without immediate, large-scale intervention the situation would be very difficult to reverse.
“We have lost March and April, and we are heading fast towards losing half of May as well. However many tourists we bring in during the remaining months, it will be very difficult to make up for the damage,” Angelides said.
He added that even if percentage declines ease in the coming months, the actual losses would be far greater in real terms. A 20% drop in May, he explained, represents a significantly larger number of visitors than a 30% drop in March.
Angelides also warned that damage to tourism would ripple across other sectors of the economy, including catering and retail. “Any damage to tourism will mean losses in other sectors of the economy as well. Many thousands of families depend on tourism, thousands of professionals, and we need to protect those jobs,” he said.
Factors behind the decline
Angelides listed four factors driving the downturn:
- The pace of new summer bookings remains sluggish despite a slowdown in cancellations.
- The industry is increasingly targeting last-minute travellers, but Cyprus faces stiff competition in that segment from cheaper destinations including Egypt, Morocco, Tunisia and Turkey.
- Rising fuel costs are leading airlines to favour shorter routes, benefiting countries such as Spain and Portugal at Cyprus’s expense. Some carriers have already cancelled flights to Cyprus or switched to smaller aircraft on existing routes.
- A large number of travellers, particularly those on middle incomes, are facing financial pressure due to rising fuel costs feeding through to other goods, and are considering closer-to-home destinations reachable by train or car.
PASYXE has asked the Ministry of Labour to extend an employment subsidy scheme for hotel workers through May and June. Following a meeting with Labour Minister Marinos Moushouttas, who received the request sympathetically, consultations are ongoing at a technical level and the association is awaiting word on whether a formal proposal will be drawn up.
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