President of PASYXE: €25 million lost during this year's tourism season

The President of the Cyprus Hotel Association (PASYXE), Thanos Michaelides, has emphasised the critical need to increase the number of hotels that are open year-round and prolong Cyprus's tourism season. According to his estimations, Cyprus is losing about 30,000 visitors this year and will likely face a cash shortfall of about €25 million.

Michaelides stressed in an interview that lengthening the tourism season might reduce the seasonality of the job market and increase both trade and government revenue. Additionally, he thinks that stability in employment in the tourism sector may draw more people to professions in the industry.

Michaelides also brought up the important subject of shortages of workers. Currently, 53,000 people work in the tourism industry in Cyprus, accounting for 11% of the country's working population. A wide range of competent professionals, including engineers, IT specialists, lawyers, accountants, and wait staff, are employed in this workforce. Therefore, the health of the tourism sector has a big impact on the whole economy and employment market.

Looking ahead, Michaelides saw a number of difficulties for 2024. He said that with expected reduced hotel occupancy rates, this year's result is unlikely to be similar to last year's. The current Middle East situation, the ongoing war between Russia and Ukraine, the UK's downturn in the economy, the scheduling of Catholic Easter in March, and a decrease in flights to Cyprus, which has contributed to a 150,000 decrease in tourist arrivals, are all significant causes.

The industry has also been negatively damaged by the recent bankruptcy of the third-largest tour operator in Germany. As a result, Cyprus's tourism sector is expected to lose €25 million this season and suffer a significant loss of 30,000 visitors.

Michaelides also talked on Cyprus's restricted access to important travel markets. He pointed out that the sector is highly dependent on the UK market, has little presence in the US market, which is one of the biggest worldwide travel markets, and suffers from limited exposure in important Central European countries like Germany.