Cyprus is positioning itself to become a high-quality, year-round tourist destination that balances sustainability, environmental friendliness, and economic growth, according to the president of the Association of Cyprus Tourist Enterprises (Stek) Akis Vavlitis.

Speaking at the association’s annual general assembly, Vavlitis highlighted the sector’s resilience and its critical role in benefiting local communities, workers, and businesses.

Despite geopolitical challenges, he said, Cyprus achieved a record 4.04 million visitors in 2024, with expected tourism revenue reaching €3.2 billion, contributing about 13 per cent to the country’s GDP.

However, Vavlitis noted that a significant portion of these visitors—around 35 per cent, or 1.4 million people—did not stay in licensed hotel accommodations, opting instead for unregistered or short-term rental properties or even visiting the Turkish-occupied north.

Moreover, he pointed out that the average length of stay dropped from 10.7 days in 2014 to 8.6 days in 2024, marking a 24 per cent decrease.

Looking ahead, Vavlitis warned that despite the record numbers, Cyprus’ tourism industry should not take its success for granted.

Continuing geopolitical turmoil and uncertain economic conditions in key markets such as Germany and France may impact the future stability of tourism.

In 2024, visitors from the UK made up 35 per cent of inbound tourism, while Israel accounted for only 10 per cent, indicating a need to diversify source markets.

Vavlitis proposed targeted strategies to attract higher-quality tourists from markets like Saudi Arabia and India, in a bid to reduce risks and broaden the sector’s international reach.

Vavlitis also addressed the persistent issue of tourism seasonality, which remains a significant structural challenge.

Winter months attract just 16 per cent of total visitors and generate only 12 per cent of tourism revenue.

To tackle this, he suggested conducting a study in collaboration with industry stakeholders to identify and develop winter tourism products tailored to specific visitor segments.

Labour shortages in the tourism sector was another pressing issue mentioned during the meeting.

With Cyprus’ economy and hospitality industry expected to continue growing at a rapid pace, Vavlitis emphasised the importance of hiring workers from third countries to fill staffing gaps.

He cited the government’s recent move to digitise the hiring process for foreign workers, which aims to streamline procedures and reduce bureaucratic delays.

Additionally, Vavlitis highlighted the importance of addressing infrastructural challenges, including the insufficient energy distribution network to accommodate renewable energy sources in the hospitality sector.

He called for urgent measures to support the creation of energy communities and the implementation of carbon emission reduction plans for businesses, while advocating for large energy consumers, such as hotels, to be allowed to produce and consume green energy.

On the topic of short-term rentals, Vavlitis stressed the need for a regulatory framework that ensures safety and fairness, urging the government to establish clear guidelines for the operation of these accommodations.

He also recommended a comprehensive spatial planning strategy for tourism to promote balanced development and protect environmentally sensitive areas.

The final message from Vavlitis was one of commitment to sustainable tourism, stating that Stek will now focus on promoting sustainable tourism practices as an absolute priority for the industry.

This aligns with the association’s long-standing belief that “quality tourism is the only way forward”.

In his own address, Alexandros Thanos, Managing Director of the Greek Federation of Tourism Enterprises (Sete), emphasised the shared challenges faced by both Greece and Cyprus, including climate change, workforce shortages, and the issue of over-tourism.

He concluded by calling for a tourism strategy that combines competitiveness with responsibility, highlighting the importance of collaboration and partnerships to strengthen the sector’s future.