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Cyprus Hotels See Softer Summer Demand As Energy Costs And Regional Tensions Weigh On Tourism

Cyprus’s hotel sector is heading into the peak summer season with occupancy averaging about 85% in July and August. While remaining strong by historical standards, it is still below last year’s record levels as rising energy costs and regional instability continue to weigh on tourism.

Bookings Improve, But The Market Remains Behind Last Year

Pasyxe director-general Christos Angelides said reservations have strengthened in recent weeks, helped by stronger demand over long weekends and a rise in last-minute bookings from neighbouring countries and the domestic market.

“There has been stronger demand over long weekends, particularly through last-minute bookings from neighbouring countries and the domestic market, which has helped improve the picture,” Angelides said.

Even so, he said Cyprus continues to face a difficult operating environment, with higher energy costs linked to regional conflict and persistently high airfares adding pressure to the sector.

“We remain optimistic and continue to work together as an industry, but these are issues we must keep in mind,” he said.

Occupancy Holds Up, But Last Year’s Benchmark Was Exceptionally High

Angelides said nationwide hotel occupancy is averaging around 85% during the summer peak, compared with as much as 97% in August during last year’s record tourism season. Industry estimates suggest occupancy this year is running about 10% to 15% lower.

The Industry’s Next Test Is The Off-Season

The industry’s focus is now shifting to extending the tourism season into the winter and shoulder months.

“Our biggest hope is to build on last year’s performance during the November 2026 to April 2027 period. That is where we believe the difference can be made,” Angelides said, adding that stronger off-season demand could help offset the softer start to the year.

Despite the more challenging conditions, he said Pasyxe members remain committed to maintaining service standards and protecting Cyprus’ reputation as a high-quality destination.

Regional Tensions Continue To Influence Booking Behaviour

Separately, Actta president Haris Papacharalambous said the market remains behind last year’s pace, although the decline has so far been manageable. He noted that the Famagusta district has been affected more than other parts of the island.

Papacharalambous said arrivals have declined across almost all of Cyprus’ main source markets this year, with Israel the clear exception. Arrivals from Israel rose 170% in June compared with the same month in 2025, when the Israel-Iran conflict disrupted travel patterns.

He said one of the industry’s biggest challenges remains the perception of Cyprus as being exposed to regional conflict, particularly following the drone incident at the British Bases in March and the media coverage that followed. According to Papacharalambous, any renewed outbreak of violence in the region has an immediate impact on bookings.

“The effect is visible the very next day,” he said, adding that the latest developments have not yet triggered a significant downturn.

Outlook Points To A Softer Year, But Not A Collapse

Papacharalambous expects overnight stays across Cyprus to finish the year about 12% to 14% below last year’s record level. While tourism volumes are expected to remain historically strong, 2026 is unlikely to match the exceptional performance recorded in 2025.

Bank of Cyprus And Wealthyhood Open Access To Cypriot And Greek Stocks

Bank of Cyprus has endorsed a significant expansion in digital investing, as Wealthyhood x BoC launches trading in Cypriot and Greek stocks for retail investors across Cyprus, Greece and Europe.

A Wider Gateway To Local Equities

Through a single mobile application, users can now invest in companies listed on the Cyprus Stock Exchange and Euronext Athens, with access starting from as little as €1. The platform says it is offering some of the lowest fees in the market, while making blue-chip Cypriot and Greek companies more accessible to everyday investors.

The move is designed to lower a long-standing barrier to participation in local capital markets. Historically, retail investors have faced high minimum ticket sizes, complex trading interfaces and substantial brokerage, clearing and exchange fees. Wealthyhood x BoC says it is addressing those constraints through fractional investing and market-leading trade execution.

A Strategic Partnership Moves Forward

The launch marks another step in the growing partnership between the Bank of Cyprus and Wealthyhood, with the local lender integrating access to both the Cyprus Stock Exchange and the Athens market into the investment platform.

For the Bank of Cyprus, the expansion is part of a broader push to improve digital investment access for clients and to widen the range of instruments available through modern wealth-management channels. The platform is positioned not only as a convenience tool, but as an on-ramp to investing for a younger and more digitally native audience.

Lowering The Cost Of Market Access

Wealthyhood co-founder and chief executive Alexandros Christodoulakis said the launch is intended to remove what he described as artificial barriers between ordinary investors and the domestic economy.

“For too long, investing in leading Cypriot and Greek companies has felt unnecessarily expensive and beyond the reach of a younger generation of investors,” Christodoulakis said. “High minimum investment limits and burdensome exchange fees created an artificial barrier between everyday people and our domestic economy.”

He said the new offering “democratises investing” by bringing the Cyprus Stock Exchange and Euronext Athens onto the platform on equal terms. According to Christodoulakis, fractional shares from €1 and the absorption of stock exchange fees through Smart Execution are designed to make local market investing simpler, cheaper and more intuitive.

“Our users have been asking for it, and we were determined to deliver,” he added.

Designed For Broader Portfolio Building

Wealthyhood co-founder and chief technology officer Konstantinos Faliagkas said the new feature expands portfolio construction options for users in Greece and Cyprus.

“We are very excited that, through the Wealthyhood x BoC app, users can now add Cypriot and Greek stocks to their portfolios with the lowest fees in the market and the option of fractional investing,” Faliagkas said.

The platform also offers curated investment collections focused on Cypriot and Greek companies, alongside thematic portfolios spanning areas such as high-dividend equities, artificial intelligence and biotechnology. The company says this helps investors identify opportunities more easily while building diversified portfolios aligned with their interests and risk preferences.

Bank Of Cyprus Sees A Meaningful Step Forward

Christos M. Ioannou, head of Private & Affluent Banking at the Bank of Cyprus, described the launch as an important milestone in the collaboration between the two organisations.

“The launch of trading in Greek and Cypriot equities through the Wealthyhood x BoC platform, with the addition of the Athens Exchange and Cyprus Stock Exchange markets, marks a vital expansion in the strategic partnership between the Bank of Cyprus and Wealthyhood,” Ioannou said.

He added that the bank expects strong interest from clients seeking broader access to major exchanges through a digital investment platform.

“We are confident that the Bank’s clients, as well as any client, will welcome this innovative offering, which provides access to the Athens Exchange and Cyprus Stock Exchange, among other major exchanges, through a digital investment platform, further expanding their investment choices,” he said.

Technology, Transparency And Scale

The platform says investors in Greece and Cyprus can now buy fractional holdings in local shares from €1, eliminating the need to commit hundreds of euros to purchase higher-priced stocks.

It also highlights its Smart Execution feature, which processes orders at 3:00 p.m. every weekday and absorbs 100 per cent of the underlying stock exchange costs. Wealthyhood x BoC says this allows users to eliminate stock exchange clearing fees while benefiting from a more transparent pricing structure.

In addition to local shares, users can access more than 5,000 stocks and exchange-traded funds, supported by automated investment tools, financial education and institutional-grade security. Wealthyhood describes the application as a wealth-building platform aimed at helping younger investors learn, save, invest and build wealth regardless of experience or starting capital.

Early Traction In Greece And Cyprus

Operating across the United Kingdom and Europe, Wealthyhood says the platform has already attracted more than 30,000 users in Greece and Cyprus within months of launch. That early traction suggests demand for low-cost, mobile-first investing is extending well beyond the largest international markets.

For Bank of Cyprus, the partnership offers a way to deepen customer engagement through digital wealth services. For Wealthyhood, it provides credibility and distribution in two markets where retail participation has traditionally lagged behind demand.

As local investors increasingly seek simpler, cheaper and more flexible access to markets, the Wealthyhood x BoC model may prove to be more than a product launch. It could be a sign of how regional investing habits are beginning to change.

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