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Paphos hotels feel summer squeeze as occupancy falls

Cyprus Mail · 2026-06-29

AI SUMMARY

• What happened: Hotel occupancy rates in Paphos have dropped approximately 20 percent compared to last year, with current levels around 70 percent during the peak summer months. • Why it matters: This decline is concerning for local hoteliers who typically rely on high occupancy rates during the summer for revenue, prompting them to implement strategies to stimulate demand, including promoting domestic tourism and special offers. • What to watch next: Stakeholders in Paphos are hopeful that these initiatives will improve occupancy rates as the summer season progresses, and the effectiveness of these strategies in attracting both local and international visitors will be closely monitored.

**Paphos Hotels Experience Significant Drop in Summer Occupancy Rates**

Paphos, Cyprus – The hotel industry in Paphos is facing a notable decline in occupancy rates this summer, with figures reported to be approximately 20 percent lower than the same period last year. This downturn has raised concerns among local hoteliers, as the city and district typically enjoy high occupancy levels during the peak tourist months of June, July, and August.

Thanos Michaelides, president of the Paphos Hoteliers Association (Pasyxe), shared insights on the current situation with the Cyprus News Agency (CNA). He noted that hotels in the region usually anticipate occupancy rates exceeding 90 percent during the summer season. However, this year, the occupancy has dropped to around 70 percent, indicating a significant gap during what is traditionally one of the strongest periods for tourism in the area.

Despite a slight uptick in bookings, primarily attributed to last-minute reservations, Michaelides emphasized that the increase has not been sufficient to restore the market to its normal seasonal levels. The decline in occupancy is particularly concerning for hoteliers who rely heavily on the summer months for revenue.

In response to the challenging market conditions, hoteliers in Paphos are implementing various strategies to stimulate demand. A notable shift in focus has been towards promoting domestic tourism, encouraging local residents to explore and enjoy the offerings of their own region. Additionally, many hotels are introducing special offers and promotions aimed at attracting both local and international visitors.

Michaelides expressed optimism regarding these initiatives, stating that they are designed to maintain high service standards and keep Cyprus hotels appealing to a broad audience. He believes that these efforts will help generate renewed interest in the area, even as the tourism sector strives to recover from the current downturn.

As the summer season progresses, stakeholders in Paphos remain hopeful that occupancy rates will improve, allowing the region to regain its status as a popular destination for tourists. The focus on enhancing the visitor experience and catering to local residents may play a crucial role in the recovery of the tourism industry in Paphos.

Source: Cyprus Mail
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