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Paphos, Hoteliers Pledge Closer Cooperation As Cyprus Tourism Slows

by THEFUTURE.TEAM

Cyprus Tourism Slows As Occupancy And Arrivals Fall Below Last Year’s Levels

Cyprus’ tourism sector is facing a weaker summer season than last year, with hotel occupancy, visitor arrivals and overnight stays all trending below 2025 levels despite improving bookings in recent weeks.

The softer outlook comes as Paphos Municipality and the Cyprus Hoteliers Association (Pasyxe) reaffirmed their commitment to closer cooperation on tourism development and service quality during a meeting at Paphos Town Hall.

Acting Mayor Angelos Onisiforou and newly elected Pasyxe President Yiannos Pantazis said they would continue working together to strengthen Paphos’ tourism offering and address challenges facing the sector.

Occupancy Remains Below Last Year

Pasyxe Director General Christos Angelides said hotel occupancy is averaging about 85% during July and August, around 10% to 15% below last year’s levels. Although bookings have improved in recent weeks, uncertainty continues to affect demand for the autumn season, he said.

Angelides attributed the weaker performance to higher energy costs, expensive air travel and regional instability, adding that the industry is focusing on extending the tourism season beyond the summer 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,” he said.

Travel Industry Reports Softer Demand

Association of Cyprus Travel and Tourist Agents (ACTTA) President Haris Papacharalambous also said tourism activity remains below last year’s levels, although the decline has been moderate.

He said the Famagusta district has been more heavily affected than other regions and pointed to regional instability as one of the main factors influencing demand. Israel was the only major source market to record significant growth, with arrivals rising sharply from June 2025 after travel had been disrupted by the Israel-Iran conflict.

Papacharalambous said overnight stays are expected to finish 2026 around 12% to 14% below last year’s record level.

Arrivals Continue To Decline

Official figures from the Cyprus Statistical Service (Cystat) show tourist arrivals fell 1.7% year on year in June to 489,965.

During the first six months of 2026, arrivals declined by 10.1% to 1.66 million, down from 1.84 million in the same period of 2025.

The United Kingdom remained Cyprus’ largest source market in June, accounting for 33% of arrivals, followed by Israel with 16.4% and Poland with 7.3%. Holiday travel represented 81.6% of total arrivals.

Paphos Gains International Recognition

Despite the weaker market conditions, Paphos recently received international recognition after being named the world’s top destination for sunrise and sunset views in a ranking by photo-printing company Cewe.

The ranking, produced in partnership with travel photographer Bella Falk and featured by Travel + Leisure, highlighted locations including Petra tou Romiou, Paphos Castle and the Edro III shipwreck.

Nasos Hadjigeorgiou, executive director of the Paphos Regional Tourism Board, said the recognition would strengthen the city’s profile in international markets while supporting efforts to promote tourism beyond the traditional summer season.

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

by News Editor

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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