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Hoteliers Challenge British Tabloid Reports On Reduced Bookings in Cyprus

Recent claims by the British tabloid Daily Express about a significant drop in tourist bookings in Cyprus have been refuted by local hoteliers. The tabloid’s report, which describes a “crisis” potentially costing the sector £30 million, has been labelled as outdated by Philokypros Roussounides, Director General of the Cyprus Hotels Association (CHA). According to Roussounides, the article references data from several months ago and does not reflect current realities, such as the addition of new flights and stable tourist arrivals matching last year’s levels.

Chrysemili Psilogeni, General Manager of the Association of Cyprus Travel Agents (ACTA), acknowledged a decline in bookings earlier this year but noted that airport arrivals have recently increased. However, she pointed out that arrivals do not necessarily equate to hotel bookings, as tourists often opt for short-term rentals or stay in the island’s Turkish-occupied areas.

Resilience and Future Prospects

Roussounides emphasised the resilience of the tourism sector amid ongoing challenges, including geopolitical instability. He underscored the importance of continuing to invest in and strengthen the sector to maintain and improve current levels of tourist arrivals.

Meanwhile, Psilogeni highlighted the need to attract higher-quality tourism and extend the tourist season to enhance the sector’s sustainability. This approach aims to counterbalance any potential fluctuations in tourist numbers and expenditure due to external economic pressures.

Government and Industry Response

The Deputy Minister of Tourism, Kostas Koumis, had previously expressed optimism that tourism targets would be met based on data from the first four months of the year. His comments align with the industry’s cautious optimism, reflecting a broader confidence in Cyprus’s ability to weather short-term setbacks and continue its trajectory of tourism growth.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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