This is despite a modest decline in bookings this summer compared to last year, primarily attributed to geopolitical unrest in the Middle East. Speaking to the Cyprus News Agency (CNA), Michaelides said that “occupancy rates hovered between 80 per cent and 85 per cent in August”. He added that “so far, the summer is performing at satisfactory levels, with a slight decrease from last year in booking”. Michaelides described this season as “quite difficult” due to market fluctuations. He explained that the “situation in the Middle East not only reduced bookings from Israel but also triggered cancellations and diminished demand from other countries, which mistakenly perceive Cyprus as close to conflict zones”.

Addressing market dynamics, Michaelides noted a reliable influx of tourists from traditional markets such as Britain, Israel, Poland, France, and Germany. As the summer season nears its end in late October to early November, he acknowledged multiple challenges. “The unpredictability of geopolitical shifts makes planning and managing hotel operations particularly challenging,” Michaelides said. He also highlighted the persistent issue of labour shortages, a difficulty not exclusive to Cyprus but prevalent internationally.

Moreover, Michaelides said that “people are now spending comparatively less than before, so the revenues are not at the level we want”. He pointed out that “the global economy is not at its best and this also affects the way tourists spend”, saying that “we have to measure both revenues and occupancy rates”. Additionally, Michaelides emphasised that the hospitality industry’s objectives extend beyond simply achieving full occupancy. “The aim is not only to fill hotels but also to consider at what prices and to assess the economic impact of the tourists who stay in them,” he said. “It’s about what they leave behind financially, meaning whether they spend money or not,” he added. “This year, tourists have been more restrained, and as a result, the hotels’ revenues have also been more restrained,” he concluded.