Rising costs are driving restaurants and bars in Paphos to the brink, with 50-60 expected to close permanently in 2024, according to Angelos Onisiforou, chairman of the regional association of recreation centres.

Onisiforou said many businesses are unable to withstand soaring expenses such as rent and electricity, compounded by shrinking profit margins.  

“Some businesses will not reopen due to rising operating costs, such as rent and electricity, combined with a narrowing profit margin,” he said. 

At the same time, competition has intensified, with an increase in the number of eating establishments. “De facto the pie is being shared,” Onisiforou added.

For those still in operation, the situation remains bleak. Two-thirds of businesses have temporarily closed for the winter season, while many are relying on the festive period to “catch their breath.”  

Onisiforou added that owners are hopeful the new season will begin earlier, giving a lifeline to those struggling to survive. 

Onisiforou also raised concerns over labour shortages, urging local authorities to facilitate the recruitment of workers from third countries.  

He called for concessions, including the extension of music and alcohol licences to three years, to ease financial pressures on businesses.

Looking to the future, he proposed the creation of tourism-focused branches at local universities and colleges, which would allow international students to combine studies with hands-on training in Paphos hotels and restaurants.