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Paphos Hotels Report 20% Drop In Summer Occupancy

Hotel occupancy in Paphos has weakened significantly this summer, with rates running around 20% below the same period last year, according to Cyprus Hotels Association (Pasyxe) President Thanos Michaelides.

Speaking to the Cyprus News Agency, Michaelides said hotels and other tourist accommodation in Paphos would normally expect occupancy above 90% during the peak summer months of June, July and August. Average occupancy is currently around 70%, leaving a significant shortfall during what is traditionally one of the district’s busiest and most profitable periods.

Last-Minute Demand Has Helped, But Not Enough

Bookings have improved in recent weeks, driven mainly by last-minute reservations. Michaelides said the increase has helped ease some of the pressure on the sector but has not been enough to restore occupancy to typical seasonal levels.

Hoteliers Turn To Domestic Travel And Promotions

Hotels in Paphos are responding by placing greater emphasis on the domestic market, introducing targeted promotional offers and maintaining a strong focus on service quality to attract both local and international visitors.

Michaelides said he expects those efforts to help sustain demand through the remainder of the summer as the sector continues working to recover from earlier losses.

A Key Test For The Season

The latest figures show that hotel occupancy in Paphos remains well below last year’s levels despite a recent improvement in bookings supported by last-minute demand.

Cyprus Employment Rises 1.7% To 525,167 In Q2 2026

Cyprus employment increased 1.7% year over year to an estimated 525,167 people in the second quarter of 2026, according to the state statistical service, Cystat. Employees accounted for 472,254 of the total, while 52,913 were self-employed. The increase points to continued labor market growth across both wage employment and independent work.

Trade, Construction And Leisure Lead Employment Growth

Wholesale and retail trade, including motor vehicle and motorcycle repair, recorded some of the strongest employment gains, alongside construction and arts, entertainment and recreation.

Those sectors are closely linked to domestic economic activity, with trade reflecting consumer demand and construction reflecting investment. Employment growth in leisure-related industries also points to continued activity in consumer-facing services.

Hours Worked Rise Faster Than Employment

Labor input increased faster than headcount. Cystat estimated that employees and other workers put in 246.57 million hours during the second quarter, up 2.2% from a year earlier.

The increase suggests that businesses were not only employing more people but also recording higher total hours worked. Wholesale and retail trade, construction, and arts, entertainment and recreation again recorded the strongest gains.

Labor Market Expansion Remains Broad-Based

The combination of higher employment and hours worked points to continued expansion in Cyprus’ labor market during the second quarter. The pace remains moderate, but gains across several major sectors indicate that labor demand continued to support economic activity.

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