The tourism sector in Cyprus faces a significant downturn this year, with an estimated 30,000 fewer visitors and a loss of approximately €25 million, according to the president of the hotelier’s association (Pasyxe), Thanos Michaelides.

In a statement made to the Cyprus News Agency (CNA) on Thursday, Michaelides highlighted the need for extending the tourist season and increasing the number of operational hotel units, which he believes would help mitigate seasonal variations in employment, boost trade, and grow state revenue.

Michaelides explained that such measures would provide more stability for workers within the tourism sector, thereby attracting more individuals to tourism-related professions.

He also stressed the importance of the tourism industry, which employs about 53,000 people, a share of 11 per cent of Cyprus’ employed population.

“This workforce includes a diverse range of professionals, from chefs and IT specialists to lawyers and engineers, making the sector a crucial part of the national economy and labour market,” he said.

However, there are many challenges to deal with this year, Michaelides said, which, ultimately, may result in a worse performance compared to 2023.

“The decline in hotel occupancy rates can be attributed to several factors,” Michaelides stated.

“These include the ongoing Middle East crisis, the continued tension between Russia and Ukraine, a sluggish UK economy, the early occurrence of Catholic Easter in March, and a reduction in flights to Cyprus—resulting in about 150,000 fewer tourist arrivals,” he added.

Additionally, the recent bankruptcy of Germany’s third-largest tour operator has exacerbated the situation.

He also pointed out that a major challenge is Cyprus’ limited access to most potential tourist markets.

“It is widely known that our industry is heavily dependent on the UK market, while there is low visibility of Cyprus in important Central European markets such as that of Germany and almost no visibility in perhaps the most important tourism market in the world, that of the US,” he concluded.