Update on Cyprus tourism performance and labor market challenges

Cyprus tourism officials report that while the sector is recovering from regional instability, growth remains inconsistent. May tourist arrivals saw a 4.9 percent decline compared to May 2025, though they remain 8.1 percent higher than in 2024. Officials noted that 2026 is unlikely to be a record year due to poor performance in March and April. In the Paphos district, hotel occupancy rates for the peak summer months are currently at 70 percent, well below the expected 90 percent. Simultaneously, a new report highlights widespread labor shortages across the island. Critical gaps exist in healthcare, IT, tourism, construction, and agriculture. Shortages affect professions including nurses, software developers, restaurant staff, and heavy vehicle drivers. Energy policy was also addressed, with officials emphasizing the complexities of infrastructure and supply security in the context of projects like the Pegasus and Glaucus fields.