Cyprus tourism sector adapts to challenging summer season

The Cypriot hotel industry is facing a difficult summer season marked by high operating costs and geopolitical uncertainty stemming from the Middle East crisis. Statistical Service (Cystat) data shows that tourist arrivals in May reached 455,680, a 4.9% decline compared to May 2025. Although this is an improvement over the 30.7% drop in March and the 27.6% decline in April, arrivals for the first five months of the year remain 13.3% lower than in 2025. Thanos Michaelides, chairman of the Cyprus Hoteliers Association (Pasyxe), noted that while cancellations have normalized, booking levels remain below expectations. Hotels are now focusing on domestic tourism and targeted last-minute offers to mitigate losses without compromising profit margins. Data shows that in the summer of 2025, Cypriot residents' travel abroad increased by 16.4%, with Greece being the primary destination. Michaelides stated that the industry's current goal is to minimize damage rather than match previous performance levels. The sector is now heavily reliant on short-term bookings for the remainder of the summer to stabilize its recovery.