Cyprus hotel sector sees ‘environment of stability’ after solid 2025 season

Occupancy levels across Cyprus’ hotel sector in 2025 broadly matched those recorded a year earlier and, in some cases, edged slightly higher, reinforcing a second consecutive year of stable performance, according to the Cyprus Hoteliers Association (Pasyxe).

Its president, Thanos Michaelides said that maintaining similar results over two successive seasons has helped create a more predictable operating environment for the industry, noting that “two consecutive years with similar results create an environment of stability”.

While occupancy indicators point to a successful year, Michaelides stressed that profitability remains the most critical factor for the long-term sustainability of hotel units.

He told to Cyprus News Agency (CAN) that “the occupancy rates confirm the success of 2025”, adding, however, that profitability has not followed the same upward path.

Despite improved revenues, he said, operating costs remain high, with energy among the most significant expenses faced by hotels.

Nevertheless, he described 2025 as “a good season”, explaining that it strengthens stability and creates momentum for the future.

Michaelides said that “if 2026 moves at the same pace as 2024 and 2025”, this would further support efforts towards year-round hotel operations.

At the same time, he emphasised the need for continuous investment in hotel units, both to improve services and upgrade building facilities. Such investment, he noted, requires adequate profitability, so that “investments can be repaid”.

Turning to labour issues, the Pasyxe’s president said that in recent years steps have been taken forward, particularly in the process of issuing work permits for personnel from third countries, who now constitute the largest labour pool for the hotel industry.

“The association has submitted specific proposals to the Ministry of Labour,” he said, aimed not only at facilitating recruitment but primarily at creating stability for workers from third countries, so that “they can work in Cyprus on a full-time basis”.

This stability, he added, is decisive for service quality, as the longer an employee remains and develops in the country, the more productive and effective he becomes.

On the role of service quality in Cyprus’ reputation as a tourist destination, Michaelides said that quality “plays a central role” and represents “the most crucial link in the tourism chain”.

High quality, Michaelides concluded, helps sustain a stable and continuous flow of visitors, while also building loyal tourists who return to Cyprus repeatedly and act as “the best ambassadors of the island abroad”.