ΝΙCOSIA – A slowdown in the British economy – a key market for Cyprus tourism – the ongoing Russian invasion of Ukraine, Israel’s invasion of Gaza, fewer flights and the bankruptcy of a major German travel agency are wreaking havoc on the island.

After a quick start in the spring, bookings have fallen and there are worries among hoteliers, resorts and other businesses reliant on tourists over an expected loss of some 30,000 vacationers, seeing low occupancy rates.

Cyprus Hoteliers Association President Thanos Michaelides said the downturn could be dramatic and expectations that August and the rest of the summer into the autumn won’t bring a rebound, said Travel and World Tour.

“The decline in hotel occupancy rates can be attributed to several factors,” Michaelides told the British newspaper The Express. “These include the ongoing Middle East crisis, the continued tension between Russia and Ukraine, a sluggish UK economy, the early occurrence of Catholic Easter in March, and a reduction in flights to Cyprus -resulting in about 150,000 fewer tourist arrivals,” he added.

https://www.express.co.uk/news/world/1926179/cyprus-tourism-panic-empty-hotels

Deputy Minister of Tourism Kostas Koumis said there was a rosier picture in May with numbers showing a 1.7 percent increase compared to the same month in 2023 when the country was coming back from the COVID-19 pandemic.

From January to April, arrivals increased by 2.4 per cent annually, exceeding 1.65 million. The first month of summer saw a 5.5 per cent increase in arrivals compared to June 2023.

But now there’s worry, especially in the hospitality sector that employs about 53,000 people and makes up 11 percent of the country’s workforce that is also seeing shortages of skilled workers in technology and professions.

In the first 11 months of 2023, the country recorded 3,722,022 tourists, a 20.4 percent increase compared to the previous year. This figure was close to the pre-pandemic annual record of 3,976,777 tourists.

Fewer visitors this year could cost a loss of 35.5 million euros ($38.57 million) and Michaelides said there’s a need to try to lure people to come year round for other attractions and not just the beaches and resorts, said Argophilia.

The Express said there was anxiety about the fall in tourism that is the biggest money provider for the Greek-Cypriot side of the island that’s a member of the European Union, the Turkish-Cypriot occupied side isolated.

The United Kingdom is a crucial market for Cyprus, a former colony and with the British still having military bases there and an estimated 40,000 British nationals living on the island as a permanent home.