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Air Connectivity And Strategic Staffing: Pillars Of Cyprus Tourism Sustainability

Human Capital And Global Promotion: The Dual Engines For Growth

Cyprus stands at a crossroads, with its tourism sector requiring both an immediate infusion of skilled human resources and a robust international promotional strategy. Thanos Michaelides, President of the Cyprus Hoteliers Association, has outlined these needs as critical for maintaining long‐term sustainable development in the industry.

Global Staffing Challenges And Operational Imperatives

In a conversation with the Cyprus News Agency, Michaelides underscored that the challenges confronting the local hotel sector are not isolated. Instead, they mirror a global shortage of essential human resources. He noted that recent improvements have been achieved, particularly concerning the work permit issuance process for third-country staff, who now form the backbone of the industry’s labor pool.

Securing A Stable And Skilled Workforce

Michaelides emphasized the importance of policy reforms aimed at creating stability for third-country workers. The Cyprus Hoteliers Association has submitted proposals to the Labour Ministry to ease recruitment processes and facilitate year‐round employment opportunities. This strategic shift is expected to enhance service quality and boost overall productivity, which in turn can drive higher occupancy rates and attract premium visitors.

The Role Of Ambassadors In Enhancing The Tourism Product

According to Michaelides, every employee in the hospitality industry plays a pivotal role as an ambassador of Cyprus’s rich local culture. He stressed that firsthand cultural experiences by hotel staff serve as the first point of contact for many visitors, thereby reinforcing the nation’s image as a desirable destination.

Air Connectivity And Strategic Investments In Promotion

Despite decades of recognizing the hotel industry’s contribution to the Cypriot economy, Michaelides called for increased investment in international promotion and improved air connectivity. These measures, when combined with ongoing private investments in hotel infrastructure, can create a more resilient and competitive market that attracts higher-quality tourism year-round.

Outlook For The Future

Looking ahead to 2026, Michaelides is optimistic that the tourism sector will at least maintain the performance levels of 2025, with potential for significant improvement through continued stability and strategic planning. He asserted that superior service quality is the cornerstone of the tourism chain, leading to visitor loyalty and turning tourists into effective ambassadors for Cyprus on the global stage.

Conclusion

The vision articulated by the Cyprus Hoteliers Association hinges on attracting discerning, quality tourists, ensuring balanced development across regions, and reinforcing the nation’s competitive advantages. As the sector navigates complex challenges, a clear focus on human resources, strategic global marketing, and enhanced air connectivity is imperative to secure the future of Cypriot tourism.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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