Cyprus Hoteliers Association Backs Landmark Legal Action Against Booking.com

Challenging Unfair Market Practices

The Cyprus Hoteliers Association (Pasyxe) has formally endorsed a collective legal action aimed at redressing long-standing competitive imbalances in the hospitality sector. This significant legal effort, brought before the Dutch courts, unites over 25 national hotel associations from across Europe in a coordinated claim against Booking.com.

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Legal Foundation and Collaborative Strategy

Under the stewardship of HOTREC—the European umbrella organization for hospitality stakeholders—this action seeks redress for losses incurred over two decades, from 2004 to 2024. Pasyxe has affirmed its full support for this initiative, providing guidance and assistance to its members who opt to join the collective legal proceedings.

Judicial Ruling and Market Implications

A pivotal ruling from the Court of Justice of the European Union on September 19, 2024, has found that Booking.com’s parity clauses, which forced hotels to maintain uniform pricing across all distribution channels, violated EU competition law. These practices not only distorted market dynamics but also inflated commission fees and restricted the potential for direct bookings—a clear detriment to the sector.

Future Prospects and Industry Impact

In commenting on the strategic importance of this action, Pasyxe Director General Christos Angelides stated, “The participation of Cypriot hospitality businesses in this collective action represents an important opportunity to remedy years of unbalanced commercial practices, contributing to the creation of a fairer and more balanced digital environment for tourism enterprises across Europe.” Pasyxe has urged hotel businesses in Cyprus to register their interest in the claim via www.mybookingclaim.com before the closing deadline of July 31, 2025.

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DBRS Warns Of Middle East Risks For Greek And Cypriot Banks’ Key Sector

by THEFUTURE.TEAM

April 1, 2026

Rising Geopolitical Risks And Economic Vulnerabilities

DBRS said rising geopolitical tensions in the Middle East increase risks for Greece and Cyprus, citing their exposure to shipping and tourism. The assessment highlights sector dependence as a key vulnerability in both economies.

Impact On Economic Activity And Banking Systems

Despite recent resilience in Cyprus, ongoing volatility is affecting economic activity and the banking sector. The report, titled “Middle East Tensions Heighten Risks for Greek and Cypriot Banks’ Shipping and Tourism Exposures,” compares risks across both countries and identifies areas of exposure.

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Tourism And Shipping: The Economic Double-Edged Sword

Tourism and shipping account for a larger share of economic activity in Cyprus and Greece than in most EU countries. In Cyprus, these sectors represent 6.6% of gross value added, compared with 7.3% in Greece and an EU average of 2.9%. Beyond direct activity, tourism supports transport and leisure services, influencing consumption and broader economic output. According to DBRS, banks in both countries have above-average exposure to these sectors, increasing credit risk in the event of a prolonged downturn.

Differentiated Exposure: Cyprus Versus Greece

Exposure differs between the two banking systems. Greek banks hold a larger share of internationally secured shipping loans, while Cypriot banks have greater exposure to tourism-related activity. This makes Cyprus more sensitive to changes in travel demand. Both systems maintain profitability and capital buffers that may support performance under pressure.

Economic Ripple Effects And Sectoral Vulnerabilities

A decline in tourism flows would affect small and medium-sized businesses, household income, and real estate values. These factors are linked to asset quality in Cypriot banks. Early indicators point to higher cancellation rates and weaker travel demand in Cyprus, reflecting its proximity to regional tensions. Greece may see a more limited short-term impact due to lower exposure and potential diversion of tourism demand from affected regions.

Maintaining Profitability In A Challenging Environment

Bank profitability in both countries remained above the EU average as of the fourth quarter of 2025. Capital levels in Cypriot banks remain strong, while Greek banks continue to align with broader European benchmarks. Asset quality has improved, with non-performing loan ratios in transportation and storage close to 0% in 2025, compared with an EU average of 2.3%. In lodging and food services, non-performing loans stood at 2.1% in Greece and 0.7% in Cyprus, both below the EU average of 5%.

Sectoral Exposure And Wider Banking Implications

Data from the European Banking Authority show that transportation and storage accounted for 19.8% of loans to non-financial corporations in Greece and 11.2% in Cyprus in 2025, compared with an EU average of 5.5%. Exposure to lodging and food services reached 11.1% in Greece and 21.2% in Cyprus, exceeding the EU average of 2.6%.

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