Cyprus Hotel Industry Warns Tourism Paying Heavy Price

Markets:

The President of the US, Donald Trump, is expected to visit Greece, according to the US Ambassador to Athens, Kimberly Guilfoyle. The ambassador stated that she cannot provide an exact date for the visit but noted that many developments are currently underway. She confirmed that the President will come to Greece, along with Secretary of Defence Pete Hegseth and Secretary of State Marco Rubio.
Source: Kathimerini

Greece’s Minister of Rural Development and Food, Margaritis Schinas, and his Cypriot counterpart, Maria Panayiotou, agreed to strengthen bilateral cooperation to address the veterinary crisis caused by foot-and-mouth disease during their meeting.
According to the Ministry, both sides emphasized the need for closer coordination between the relevant authorities in Greece and Cyprus, within the framework of the European Union, with the aim of containing and ultimately eradicating the disease.

Source: Kathimerini

Macro/Political:

Stakeholders in the hotel industry warn that the tourism sector is paying a heavy price, as they foresee the negative impact of the war affecting bookings for the summer months, with pressures expected to extend into the 2027 tourist season.
Furthermore, they report pressure from travel agents to reduce prices, noting that attractive packages are being offered to the domestic market. However, local demand is unable to compensate for the scale of the losses.
More specifically, the presidents of the Cyprus Hotel Association across all districts noted significant declines in hotel occupancy rates. In Famagusta, occupancy currently ranges between 45% and 55%, compared to 80%–85% during the same period last year. In Larnaca, occupancy has dropped to 50% from 80%, while in Paphos it has fallen from 85% to 60%. In Limassol, occupancy has decreased from 80% to 50%.
Source: StockWatch

In February 2025, revenue from tourism reached EUR 85.3mn, recording an increase of 7% as compared to the corresponding month of the previous year. For the period of January-February 2026, revenue from tourism is estimated at EUR 159.9mn compared to EUR 148.9mn in the corresponding period of 2025, recording an increase of 7.4%.
Source: CyStat