Overview Of Rising Costs In The Hospitality Industry
Recent data from the Statistical Service show continued price increases across Cyprus’ hospitality sector, affecting restaurants, cafés, accommodation and travel services. Higher operating costs, including energy and raw materials, have contributed to upward pressure on prices in several categories during the past few years.
Restaurant And Bar Price Dynamics
Prices at restaurants and similar establishments increased by 4% year-on-year in May, following a 5% rise recorded in the same month last year. According to Statistical Service data, restaurant prices increased by 6.4% in 2024, 3.9% in 2023, 7.3% in 2022 and 0.6% in 2021, highlighting a broader upward trend over the past five years. Prices at cafeterias and casual dining venues also continued to rise, with the index increasing by 2.9% in May after a 4.4% increase in May 2025.
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Pressure On Beverage And Snack Prices
Price increases extended to alcoholic beverages, where the index rose by 1.5% year-on-year in May. Wine prices increased by 1% after declining by 3.8% a year earlier, while beer prices rose by 1.65% following decreases of 2.7% in 2024 and 2.9% in 2023. Among non-alcoholic beverages, soft drinks and fruit juices continued to record increases, while coffee and coffee substitutes posted one of the sharpest rises, with prices up 12.7% in May.
Accommodation And Travel Expenses
Accommodation costs also moved higher during the period. Hotel and motel prices increased by 3.4% year-on-year in May, continuing a pattern of fluctuations seen in recent years. Full-service accommodation prices have risen by as much as 16.3% in some periods, although occasional declines have also been recorded. Organised holiday packages became more expensive as well, with prices rising by 12.5% in the latest reporting period.
Escalating Transportation Costs
Air travel costs also increased in May. The passenger air transport index rose by 8.6%, reversing declines recorded in previous periods. Fuel prices and broader operating costs continue to influence pricing across the aviation sector.
Conclusion And Outlook
Recent data indicate that prices across dining, accommodation and travel services remain higher than a year ago. Although the pace of increases varies between categories, the figures highlight the continued impact of inflation and operating costs on the hospitality sector.
