Cyprus’ hotel industry is looking to last-minute bookings to soften the impact of a difficult start to the summer season, although reservations remain below the levels hoteliers had expected, chairman of the Cyprus Hoteliers Association (Pasyxe) Thanos Michaelides said. 

Speaking on CyBC’s daytime show ‘Apo Mera se Mera‘, Michaelides said the sector had come under pressure after developments in March triggered disruption across tourism, leading to mass cancellations and a sharp slowdown in bookings, particularly for hotels.

Since then, the picture has improved. Cancellation rates, he said, have now returned to more normal levels, while bookings have started moving again at a more satisfactory pace. 

Michaelides warned that the recovery remains fragile. “The important thing is that reservations have started to move to a more satisfactory level,” he said.

He added that they are still “lower than they should have been for the period we are going through now”. 

One of the more encouraging signs, he added, is the rise in last-minute demand, with bookings now concentrated mainly over the next two months. 

This gives hoteliers some hope that the rest of the summer could perform better if the trend continues. However, Michaelides was cautious about the sector’s ability to recover the ground already lost. 

Asked whether Cyprus could still match last year’s performance, he said the more realistic aim now is to reduce the damage. 

“The damage has already been done and we are now trying to reduce it,” he said. 

Michaelides said this matters because hotels have only a limited window in which to generate the income needed to carry them through the year. 

From January to March, many units are either closed or operate with low occupancy and reduced prices, while November and December are also weak months, with several hotels again either closing or running at a loss. Even when a hotel is closed, he added, it continues to face operating costs. 

This leaves the sector heavily dependent on the six-month summer period, making profitability essential not only for survival but also for future investment. 

If hotels manage to remain profitable, Michaelides said, owners can invest during the winter in improving their product, renovating facilities and promoting Cyprus abroad ahead of the next season. 

Tourism, he added, does not work on short bursts of demand. It needs constant movement in the market to maintain interest, protect air connectivity and keep tour operator programmes in place. 

For that reason, Michaelides said Cyprus must now invest more heavily in promoting its tourism product, both for the remainder of 2026 and for 2027. 

He said tour operators are already in Cyprus to discuss next year’s contracts, which means the current climate will also shape the following season. 

“You understand that when you close an agreement for next year in an environment of low demand, it somewhat predetermines the following year,” he said. 

The priority, he added, should be to create enough demand now to limit the damage in 2026, while also securing stronger agreements for 2027, with prices and occupancy at levels that allow hotels to remain viable. 

Michaelides was also asked whether Cypriot hotels are increasingly passing into foreign hands. 

He said the percentage of hotels owned by foreign investors remains small, with most still owned by Cypriots. 

At the same time, he said foreign investment should not automatically be seen as a threat, as it can bring new models, fresh capital and stronger competition, helping to enrich the Cypriot tourism product. 

However, he added that the “heart” of the hotel sector should remain Cypriot. 

For that to happen, he said, profitability is crucial. 

“If hotels are profitable, then Cypriot hoteliers no longer have a reason to sell,” Michaelides concluded.