Cyprus should make artificial intelligence and digital transformation a central part of its tourism strategy, the Hotels Association (Pasyxe) said on Sunday, arguing that technology could help strengthen the sector’s resilience, competitiveness and long-term growth.

Marking World Tourism Day, the association said AI could support tourism businesses in areas ranging from data collection and visitor services to energy efficiency, while helping the industry respond more effectively to changing traveller expectations.

However, Pasyxe stressed that the transition would require more than individual investment by hotels and tourism businesses. It called for coordinated planning, stronger infrastructure, specialised staff and a modern system of incentives to encourage companies to adopt new technologies.

The association said the issue was particularly important for Cyprus at a time when the tourism sector is seeking to sustain demand following the uncertainty created by the continuing crisis in the Middle East.

Pasyxe president Yiannos Pantazis said Cyprus now had an opportunity to rethink how its tourism model operates and use technology to strengthen the island’s position against larger competing destinations.

“As a country, we have an important opportunity ahead of us to redesign our tourism model and compete on equal terms with the larger tourism markets,” Pantazis said, adding that “the next day of Cyprus tourism will be determined by our ability to adapt, invest and make use of the opportunities available to us”.

According to the association, AI could play a role across several areas of the visitor economy, including the collection and analysis of data, improvements to the visitor experience and reductions in businesses’ energy footprint.

Pasyxe said these technologies could open new opportunities for growth and modernisation, particularly as tourism businesses face increasing pressure to improve efficiency while responding to more digitally demanding travellers.

Its director-general Christos Angelides said World Tourism Day was also a reminder that Cyprus’ tourism strategy needed to move in line with broader international developments and changing consumer behaviour.

He said the country’s approach to tourism development “must respond to global trends and to the needs of the modern traveller”, placing technology alongside wider efforts to improve the quality and competitiveness of the tourism product.

This year’s World Tourism Day events, hosted in El Salvador, are centred on the theme of the digital agenda and artificial intelligence in reshaping tourism, with discussions focusing on how new technologies can improve competitiveness and support the sector’s transformation.

The same themes will also feature prominently at the 47th Cyprus Hotel Summit & HORECA Expo, organised by Pasyxe on December 2 at the Hilton in Nicosia, where technology, innovation and competitiveness will be among the main areas of focus.