Cyprus’ tourism sector remains under pressure from the fallout of the Middle East crisis, although the picture has improved since June, new hoteliers association Pasyxe president Yiannos Pantazis said. 

In an interview with Politis Radio, Pantazis appeared cautiously optimistic about the rest of the season, noting that the sector had taken a hit in March and April, when cancellations increased and new bookings slowed. However, he said demand has since begun to recover, even though new reservations remain below last year’s levels. 

A key factor, he explained, was that flight schedules were largely maintained, allowing Cyprus to protect its image as a safe and reliable destination. Most hotels also chose to remain open despite weaker demand and higher operating costs, a decision he described as important for the country’s credibility in international markets. 

Pantazis said that “there is still room to improve the season’s performance, particularly through last-minute bookings, which are more active this year than in previous seasons.”  Hoteliers, he noted, can use commercial tools such as special offers, incentives for travel agents and targeted promotions to stimulate demand. As he put it, “it is never too late” to improve the final outcome. 

As Pantazis mentioned, the pressure, however, is not being felt evenly across the island. Protaras appears to be facing the greatest difficulty, while Ayia Napa is performing better. Larnaca has also recorded declines, with Paphos affected to a lesser extent. 

At the same time, Pantazis stressed that Cyprus is not operating in isolation. Higher airfares and pressure on household incomes abroad are weighing on travel decisions across several markets, making competition for holidaymakers more intense. 

Looking beyond the current season, the Pasyxe president said Cyprus must continue working towards becoming a year-round, or at least ten-month, destination. Tourism, he recalled, contributes around 14 per cent of GDP, while its wider economic impact brings its contribution closer to 18 to 19 per cent. 

Achieving that goal, he said, will require closer cooperation between the state and private sector, along with more investment in tourism development. Pantazis added that “Cyprus does not need to abandon its existing market strategy, but should make targeted adjustments where necessary.” 

The British market remains the most important for Cyprus, while Israel has become the island’s second-largest source market. Poland continues to grow strongly, he added, while Germany and Romania are among the markets that should be further strengthened. 

The recent disruption, Pantazis said, also showed the need for clearer crisis management mechanisms. He praised the Deputy Ministry of Tourism for the steps it took during the latest crisis, but said coordination can still improve, particularly through more structured cooperation between the public and private sectors. 

On domestic tourism, Pantazis acknowledged concerns over prices and minimum stay requirements. Pasyxe, he said, encourages members to offer reasonable accommodation packages, although pricing remains a decision for each business. 

He also noted that several offers are available this year through hotel websites and direct bookings, urging Cypriots to explore the options.  

However, he accepted that criticism over minimum stays is justified, especially when some hotels require three or four nights. With bookings lower than in 2024, he said, more hotels should consider allowing shorter stays, including two-night bookings. 

Pantazis placed particular emphasis on human resources, describing people as the hotel industry’s most important asset. Tourism services, he said, are delivered by people and not machines, making cooperation with trade unions and investment in staff essential. 

He also warned that the shortage of workers remains one of the sector’s most serious challenges, especially as fewer young people appear willing to enter the hotel and tourism industry. 

The answer, he said, lies partly in education and better information about the career prospects tourism can offer. The sector, Pantazis finally stressed, can provide professional development and satisfactory earnings, but young people need stronger incentives and a clearer understanding of the opportunities available.