Cyprus hotels pin August hopes on late arrivals

Cyprus hotel bookings have returned to a more normal pace, but August remains around 10 per cent behind, with operators relying on last-minute demand and discounts to support occupancy, the heads of two tourism bodies told the Cyprus News Agency (CNA) on Wednesday. Akis Vavlitis, president of the Association of Cyprus Tourist Enterprises (Stek), and Christos Angelides, director general of the Cyprus Hoteliers Association (Pasyxe), spoke separately to the agency about the outlook for the remainder of the season. Vavlitis gave a more positive assessment, noting that “some hotel units may be behind, but, in general, we are in a satisfactory state compared to the previous period”. Although cancellations continue, they remain within normal levels, he explained, while some hotels in the Famagusta district may still be facing greater pressure. Vavlitis also pointed to the improvement since the disruption experienced in March, noting that the tourism industry, hoteliers and the government “have done what is necessary to return the situation to some normality”. However, he acknowledged that concerns linked to developments in the Middle East have not disappeared, particularly because of Cyprus’ proximity to the region. “It is not easy to get rid of someone’s fear,” Vavlitis noted. Hotels have also introduced discounts to attract visitors, although Vavlitis cautioned that occupancy levels alone do not provide a complete picture of the season’s performance. Instead, “one must see the financial footprint of the 2026 tourist year”, he explained, with a clearer assessment expected towards the end of October. “The summer tourist season ends at the end of October, while we have indications for the months of November and December and safe estimates can be made regarding the financial footprint,” he added. Meanwhile, preparations for next year are already under way, with almost all hotel units having signed contracts for the 2027 season. “We are optimistically awaiting 2027,” Vavlitis noted, adding that the objective “is to reach the occupancy and revenue levels of 2025”. However, he indicated that there was little more the industry could do to change the outcome of the current season. “For 2026, everything that needed to be done has been done. Not many things can change,” he concluded. Angelides offered a more cautious assessment, although he noted that July had performed better than initially expected due to a high volume of late reservations. “July was better than initial indications indicated, with a very high volume of last-minute bookings, as is currently the case with August,” he explained. Nevertheless, Angelides put the nationwide booking shortfall at around 10 per cent for August, widening to as much as 15 per cent for September. Although August could still perform reasonably well, he warned that “it is very difficult to cover the occupancy rates of previous years”. While current indications suggest August could still perform reasonably well, Angelides warned that “it is very difficult to cover the occupancy rates of previous years”. The industry is therefore continuing to rely on last-minute demand, including an increasing flow of visitors from Israel. “There is an increasing flow from the Israeli side, which is in itself a last-minute clientele and a short vacation duration,” Angelides noted. “The increase in flow is very helpful considering that we lost many reservations at the beginning of the season for the rest of the summer,” he added. However, the improvement in occupancy has come at a cost, as hotels have offered further discounts to secure bookings. “The important thing from now on is the calculation of the financial losses because in order to reach the current occupancy rates, further discounts have been given,” Angelides explained. Pasyxe is also looking to strengthen demand beyond the peak summer period, particularly during the autumn and, if possible, into December. “It would be a good idea if we could fill more gaps in the Autumn, maybe even in December,” he noted, describing this as “something we need to work on”. At the same time, Angelides called for Cyprus’ promotion for 2027 to begin immediately, particularly in key European markets. “It is very important to intensify efforts to promote and advertise Cyprus from now until the end of 2027,” he stressed. Angelides also called for “any doubts registered in the minds of the travel public in Europe about Cyprus” to be dismissed, while pointing to the pressure created by the cost of living, energy prices and airfares in key markets such as the United Kingdom and Germany. With the financial outcome of the current season still uncertain, he concluded that Cyprus has “a lot of work to do in terms of promotion, advertising and hospitality”.