A 25-30% decline in occupancy rates was observed in recreational centers across all cities in June, as reported by Neophytos Thrasyvoulou, the President of the Pan-Cyprian Federation of Recreation Center Owners.

In his statements to Cyprus News Agency, Mr. Thrasyvoulou attributed this decline to the prevailing economic situation, characterized by a rapid surge in inflation and accumulated financial challenges. He emphasized that these circumstances inevitably affected Cyprus, considering its status as a small economy. Consequently, he called for strategic measures from the Ministry of Tourism and the government to reverse this trend.

Delving into the specifics, Mr. Thrasyvoulou highlighted that in the free area of Famagusta, a significant number of tourists arriving at Larnaca Airport opt to visit the North instead. However, Larnaca experienced a relatively lesser impact due to its local tourism, which contributed to sustaining visitation levels.

Moreover, Paphos experienced a noteworthy decline of 35% in June. In the Paphos district, recreational centers faced fluctuating occupancy levels, ranging from overcrowding on certain days to less than 40% capacity, particularly on weekends, primarily due to weddings and the pandemic. Additionally, some visitors to Paphos engaged in day trips, further influencing the center's occupancy rates.

Regarding Limassol and Nicosia, Mr. Thrasyvoulou indicated that the decrease in occupancy rates mirrored each other, as residents from these regions often traveled to other cities during the weekends.

In mountainous areas, the occupancy rates remained consistently low. However, an increase in weekend visits was observed, indicating a potential shift in visitor preferences.

Expressing his hopes for improvement, Mr. Thrasyvoulou wished for July to bring about better visitation levels to recreational centers.

He called upon entrepreneurs to actively contribute to enhancing the quality of their services. Additionally, he emphasized the importance of government investments in the tourism sector, as it played a vital role in supporting the local economy during challenging times in the past.

Meanwhile, yesterday, June 28, Costas Koumis, the Deputy Minister for Tourism, made an important announcement regarding the approval of a Memorandum of Understanding (MoU) with Saudi Arabia on tourism. In addition, the Cabinet has agreed to establish a tourism observatory within the Deputy Ministry. These initiatives aim to enhance the competitiveness of Cyprus' tourism sector.

Following the Cabinet meeting, Koumis stated that the MoU was ratified, signifying both parties' recognition of the importance of strengthening bilateral cooperation to further boost tourism flows. The memorandum is expected to facilitate closer collaboration between Cyprus and Saudi Arabia in various aspects of the tourism sector. This includes knowledge and information exchange, development of specialized forms of tourism, cooperation in educational programs related to tourism, as well as collaboration in audiovisual production and tourism product development.

In response to a question, the Deputy Minister revealed his upcoming trip to Saudi Arabia, scheduled for the following Sunday. During his visit, he intends to promote Cyprus as a destination in all three cities that will soon have air connections with Cyprus. He emphasized that this emerging market has seen limited arrivals thus far, but with the introduction of air connectivity and the increasing travel propensity of Saudis outside their country, better results are anticipated.

Furthermore, Koumis emphasized the importance of raising awareness of Cyprus as a tourist destination in Saudi Arabia and expressed the commitment to working diligently in this regard. He mentioned ongoing communication with the Cypriot Embassy in Saudi Arabia and tourism entrepreneurs, expressing optimism about achieving positive outcomes in the first year, without specifying any predetermined target for the number of arrivals.

Regarding the establishment of a tourism observatory, Koumis revealed that it will serve as a comprehensive monitoring service to collect and provide data pertaining to all aspects of Cyprus' tourist activities. This initiative aims to enhance the competitiveness of the tourism sector by offering thorough information to relevant agencies. The observatory will gather and analyze primary and secondary research results from diverse sources.

The Deputy Minister clarified that this service will function as a dedicated unit within the Deputy Ministry. He emphasized the need to strengthen the sector and expressed confidence that the observatory will contribute significantly to this objective.

When asked about the dissemination of data, Koumis assured transparency, stating that the collected figures and information will be periodically presented. He provided an example of noise pollution, an issue that affects certain tourist areas. While acknowledging the problem, he noted that not all tourist areas are impacted to the same extent. The observatory aims to identify the specific areas facing the most significant challenges, enabling targeted measures to be implemented.

Lastly, Koumis highlighted the importance of distributing the collected data to local authorities and relevant stakeholders, including ministries, to ensure that the information benefits all involved parties.