Outlook uncertain for hotels after a difficult 2022

Last year was a difficult for hoteliers, and it is still too early to make predictions for 2023, president of the Paphos Hoteliers Association Thanos Michaelides said on Tuesday.

Speaking to the Cyprus News Agency, Michaelides said that 2022 started with high hopes after positive signs concerning the receding effects of the Covid-19 pandemic, but the Russian invasion of Ukraine completely changed the scenario for hoteliers.

He also added that people working in the industry had to target alternative markets to fill the gap created by the absence of Russian and Ukrainian tourists.

“The loss of the Russia market, however, was partially covered,” Michaelides said. “The occupancy rate for 2021 stood at 80 per cent compared to 2019, the last ‘normal’ year for Cyprus.

“Hotel revenues in Paphos were also good, only 15 per cent less than in 2019. In general, hoteliers started attracting tourists looking for high-quality vacations.”

Michaelides also said that the digital campaign launched by the Paphos regional tourism board bore fruits and will be further extended in 2023.

However, he also reminded that operational problems such as the lack of manpower and the increase in the cost of electricity will likely affect hoteliers in 2023.

“We cannot make any prediction, the geopolitical situation of the world calls for caution, everything can change suddenly and we need to remain flexible and adapt to whatever may happen,” he said.

Moreover, he praised the efforts of the deputy ministry of tourism in targeting new markets, a strategy that, according to Michaelides, produced positive results.

“That said, the information that we received from the World Travel Market exhibition in London last November is that the UK interest in Cyprus is still high.

“Bookings from the UK for the summer usually begin at the end of January. By then, we will have a better picture of the situation for 2023,” he concluded.