**Cyprus Hotels Hope for Last-Minute Bookings to Boost Summer Season**
The hotel industry in Cyprus is currently navigating a challenging start to the summer season, with hopes pinned on last-minute bookings to mitigate the impact of lower-than-expected reservations. Thanos Michaelides, chairman of the Cyprus Hoteliers Association (Pasyxe), shared insights on the situation during a recent appearance on CyBC's daytime show, ‘Apo Mera se Mera.’
Michaelides noted that the tourism sector faced significant disruptions following events in March, which led to a wave of cancellations and a notable decline in bookings for hotels. However, he reported that the situation has improved somewhat since then, with cancellation rates returning to more typical levels and bookings beginning to pick up at a more encouraging pace. Despite these signs of recovery, he cautioned that the rebound remains fragile, with current reservations still falling short of expectations for this time of year.
"The important thing is that reservations have started to move to a more satisfactory level," Michaelides stated, while acknowledging that they are still "lower than they should have been for the period we are going through now." He highlighted a particularly positive trend: an increase in last-minute demand, which is primarily focused on the upcoming two months. This trend offers some optimism for hoteliers, who are hopeful that continued interest could lead to a stronger performance for the remainder of the summer season.
Nevertheless, Michaelides expressed caution regarding the industry's ability to recover the ground lost earlier in the year. When asked if Cyprus could match last year's tourism performance, he emphasized that the immediate goal is to minimize the damage already incurred. "The damage has already been done and we are now trying to reduce it," he remarked.
The hotel sector's reliance on the summer months for profitability is a critical concern. From January to March, many hotels either remain closed or operate at low occupancy with reduced prices, while the months of November and December also typically see diminished activity. Even during closures, hotels continue to incur operating costs, which underscores the importance of a successful summer season for financial viability.
Michaelides explained that a profitable summer allows hotel owners to reinvest in their properties during the winter months, facilitating renovations and marketing efforts to promote Cyprus as a tourist destination for the following year. He stressed that tourism requires sustained demand rather than sporadic bursts, as continuous market movement is essential to maintain interest, ensure air connectivity, and uphold tour operator programs.
To bolster the tourism sector, Michaelides called for increased investment in promoting Cyprus's tourism offerings, both for the remainder of 2026 and into 2027. He pointed out that tour operators are already in Cyprus to negotiate contracts for the upcoming year, indicating that the current market conditions will influence future tourism dynamics. "You understand that when you close an agreement for next year in an environment of low demand, it somewhat predetermines the following year," he noted.
The priority, according to Michaelides, should be to generate sufficient demand now to limit potential losses in 2026 while also securing favorable agreements for 2027. Achieving occupancy and pricing levels that ensure hotel viability is crucial for the sector's stability.
In response to questions about the ownership of hotels in Cyprus, Michaelides clarified that while there is a perception of increasing foreign investment, the percentage of hotels owned by foreign entities remains relatively small. He emphasized that the majority of hotels are still owned by Cypriots. However, he also acknowledged that foreign investment can bring valuable new models, capital, and competition, which can enhance the overall tourism product in Cyprus. Despite this, he maintained that the "heart" of the hotel sector should remain in Cypriot hands, with profitability being a key factor in preventing local hoteliers from selling their businesses.
"If hotels are profitable, then Cypriot hoteliers no longer have a reason to sell," Michaelides concluded, underscoring the importance of a robust and resilient hotel industry for the future of Cyprus tourism. As the summer season progresses, the industry remains hopeful that last-minute bookings will provide the necessary boost to navigate the challenges ahead.