An unprecedented wave of rising costs has forced numerous businesses in Paphos to shut down permanently, according to Angelos Onisiforou, President of the Paphos Association of Leisure Center Owners (SIKAP). Onisiforou estimates that 50-60 establishments closed in 2024, unable to withstand the mounting financial burden.

Many businesses are unable to reopen due to soaring operational costs, including rent and electricity, coupled with shrinking profit margins. At the same time, the number of dining establishments in the area has grown, dividing market demand and putting additional pressure on existing businesses, Onisiforou explained.

Of the businesses still operational, two-thirds have suspended activities for the winter season. However, professionals in the sector hope for a much-needed boost during the holiday period. Additionally, there is optimism that the new tourist season will start earlier, allowing the remaining businesses to recover and stay afloat.

Onisiforou also highlighted challenges in sourcing workers from third countries, a growing concern for the hospitality industry. He called on local authorities to ease licensing regulations for music and alcohol, suggesting a three-year licensing period to reduce administrative burdens.

SIKAP has proposed the creation of tourism-focused programs at local universities and colleges. Such programs would enable students from third countries to receive both academic training and practical experience by working in the hotels and restaurants of Paphos, addressing labor shortages and enhancing industry standards.