Thanos Michaelides, President of the Cyprus Hotel Association (PASYXE), has emphasized the necessity of extending the tourist season and increasing the number of hotel units that operate year-round. He estimates that Cyprus is facing a loss of about 30,000 tourists and approximately €25 million this tourist season.

Michaelides explained that extending the tourist season would reduce seasonality in the labor market, increase trade and state revenues, and create stability for workers in the tourism industry, thereby encouraging more people to pursue tourism-related professions.

Michaelides also highlighted the significant challenge of a shortage of human resources in the industry. He noted that the tourism sector employs about 53,000 people, accounting for 11% of Cyprus' employed population. This workforce includes many professionals with technical and academic skills, such as chefs, IT specialists, lawyers, accountants, engineers, and waitstaff. The employment of these professionals underscores the industry's importance and its wide impact on the economy and labor market.

Discussing the challenges for this year, Michaelides noted that 2024 is not expected to perform as well as the previous year. He estimated that annual hotel occupancy rates would be lower compared to 2023.

He attributed this decline to several factors: the sudden crisis in the Middle East, the ongoing conflict between Russia and Ukraine, a slowdown in the UK economy, the fact that Catholic Easter fell in March, and a reduction in the number of flights to Cyprus, which has led to about 150,000 fewer tourist arrivals. Additionally, he pointed out that early June saw the bankruptcy of Germany's third-largest tour operator.

As a result, Cyprus' tourism industry is experiencing a loss of about 30,000 tourists and an estimated €25 million this season.

Michaelides also identified Cyprus' limited access to most potential tourist markets as a major challenge. “Our industry is heavily dependent on the UK market, and there is low visibility of Cyprus in significant Central European markets, such as Germany, and almost no visibility in perhaps the world's most important tourism market, the US,” he concluded.