Hotel occupancy rates in Cyprus ranged between 80%-85% in August, according to Thanos Michaelides, President of the Cyprus Hotel Association (PASYXE). He noted that the summer season so far has been satisfactory, although slightly down compared to last year. Mr. Michaelides mentioned that the 2024 season is expected to end slightly below last year's figures.

Mr. Michaelides also stated that as of August 31, hotel bookings across the Republic were, on average, slightly behind last year’s numbers. He described this summer as particularly challenging due to various fluctuations, adding that the situation in the Middle East significantly affected bookings, not only from Israel but also due to cancellations and reduced demand from other countries that perceive Cyprus as being too close to Israel.

For some, this proximity was a deterrent to booking holidays in Cyprus.

Regarding the markets that contributed to tourism in the Republic, the PASYXE President mentioned the UK, Israel, Poland, France, and Germany, along with other traditional markets.

When asked about the biggest challenges hoteliers have faced and continue to face this summer, which ends in late October or early November, Mr. Michaelides pointed out several issues.

The main problem, he said, is maintaining a steady flow of bookings, which lacked the continuity and momentum that hoteliers would have liked.

He attributed this to ongoing geopolitical changes that abruptly alter demand, making it difficult for hotels to plan, thus complicating their operations.

Other ongoing challenges include the recruitment of labor, which remains a difficult issue not only for Cyprus but for other countries facing similar problems.

He also observed that people are spending less, so revenue is not at the desired level because the global economy is not in the best state, which affects how much tourists spend. It’s important, he explained, to consider both revenue and occupancy rates.

Mr. Michaelides emphasized that the goal is not just to fill hotels but to consider at what prices they are filled and what tourists leave behind, in terms of spending, when they visit Cyprus.

He noted that this year, tourists exhibited a more restrained spending behavior, resulting in more modest hotel revenues.