Paphos hotels concerned by UK economic climate

Paphos hoteliers association (Pasyxe) president Thanos Michaelides on Thursday spoke on the rise in operating costs in the tourism sector, mainly in terms of energy-related bills and expenses, as well as the inflationary trends throughout Europe and especially the United Kingdom.

The latter is of particular concern to the Paphos hoteliers association, since it may adversely affect both the current winter tourist season, as well as the upcoming 2023 summer season, with potential visitors seeing their disposable income diminished by higher costs at home.

“The winter and summer months of 2023 will not be easy unless the situation changes”, Michaelides said.

Regarding the local hotel industry’s performance during this time, Michaelides said that hotel occupancy rates in the Paphos district have been ranging between 70 and 75 per cent in October.

The Pasyxe president also noted that there will be 30,000 beds available in the district in November, out of a total capacity of 80,000 beds.

In statements made to the Cyprus News Agency (CNA), Michaelides said that October represents the end of this year’s tourist season.

However, he remarked that there is still some tourist traffic until the end of the month in Paphos hotels, something which he attributed to half-term holidays in the United Kingdom, with the country representing the primary source of traffic inflows for Paphos.

In addition, Michaelides said that November, the first month of the winter season for the tourism industry, usually sees tourism traffic during the first fortnight.

“However, after that period, the rate of bookings starts to decrease and the average occupancy rate will also drop compared to October,” Michaelides said, noting that prices in Paphos hotels in November drop at lower levels than during the busier summer season.

“The district of Paphos is currently seeing most of its tourism business from Britain, Germany, and European markets in general,” Michaelides added, explaining that while tourist inflows from Israel are still being recorded, they are decreasing throughout the winter season when compared to the summer months.

Taking stock, the Pasyxe president said that the income generated from tourism is improving in relation to the occupancy rates that are being recorded.

This, he explained, points to higher quality tourists visiting Cyprus, something which also benefits Paphos. He noted that there is an expectation that this trend will continue improving in the future.

“Indicatively, we see that the decrease in tourist arrivals compared to 2019 is greater than the decrease in income,” the association president said.

“One of the goals of the hotel industry is to improve the quality of the visitors they receive, a goal that is gradually being achieved,” he added.

Michaelides explained that this is a result of the improved air connectivity that Paphos has managed to achieve, with additional flights from a more varied source of tourist markets benefiting the local hotel sector.