Michaelides said that in September and October, months considered to form the last section of Cyprus’ summer tourist season, the occupancy rates will fluctuate at around 70%, which represents lower levels than normal but nonetheless an improvement over the two previous years.

Regarding July and August, the core months of the summer season, the Pasyxe president stated that the occupancy rates fluctuated between 70-75% in July and approximately 80-85% in August.

“These occupancy rates are relatively satisfactory considering that the entire Russian market has been lost and there is a noticeable level of disruption across Europe’s main airports,” Michaelides said.

Compared to the previous years, Michaelides said that the occupancy rates of this year’s summer were lower than the occupancy rates of 2019, but nevertheless adequately pleasing and generally good under the circumstances.

“However, the profitability of Cypriot hotels has been hit hard by rising operating costs,” Michaelides noted.

Regarding the increase in the hotels’ running costs, these include the increase in the price of electricity, something he described as a “major problem”, as well as the rising prices of goods and supplies used by the hotels.

In terms of this upcoming winter, Michaelides estimated that several Paphos district hotels will choose to close, due to the high operating costs, lower demand and lower profitability due to off-season room rates.

“That combination will probably encourage hotels not to operate in the winter,” Michaelides said.

“The picture in terms of the number of hotels that will operate this year will become clearer towards the end of September”, he added.

Finally, Michaelides said that Paphos hotels primarily attracted visitors from the United Kingdom, Germany, Israel, and France, while occupancy rates were further boosted by domestic demand during August.

“However, the number of Cypriot visitors was lower this year, compared to 2021, since many locals decided to travel abroad this year,” he concluded.

Meanwhile, Transport Minister Yiannis Karousos said that Cyprus airports saw a 277% year-on-year increase in passenger volume during the first six months of the year, when compared to 2021.

Speaking at the annual Travel Retail Consumer Forum, which took place in Limassol on Monday, the minister praised the work that has been carried out at the Larnaca and Paphos international airports, noting that this reflects the excellent relationship between the private and public sectors as they work together towards the sector’s recovery following the pandemic and the war in Ukraine.

Moreover, Karousis said that he was certain that the coordinated effort, including the provision of incentives offered by the government, Hermes Airports and the Deputy Ministry of Tourism, with the aim of introducing new air connections and increased frequencies as well as increasing tourist traffic, will stimulate economic activity on the island.

“The development of tourism, trade, business and technology hubs is a strategic goal for the government of Cyprus and air connectivity plays an important role for the country’s economy,” Karousos said.

Source: Cyprus Mail