Cyprus hoteliers are counting their losses as the first half of the year comes to a close with bookings in decline and unlikely to recover.
Although the decline varies from town to town, hoteliers have seen an average of a 10% drop in their bookings during the first six months of the year compared to the same period last year.
Cyprus Hoteliers Association Paphos President Thanos Michaelides told Stockwatch that the drop in the region for June and the six month period was 7%.
“Although traditionally, the second half of the year sees more bookings, especially in the three remaining hot months, July, August and September, we expect the drop in the occupancy rate will continue,” said Michaelides.
Not expecting much to change in the coming months, Michaelides said that hoteliers are doing offers in an attempt to keep their occupancy rate high.
The head of CHA in Paphos said that increasing the island’s connectivity with the rest of the world, in combination with the continuous upgrade of our tourist product, is vital for the industry.
CHA’s Limassol President Charis Theocharous also said that local hoteliers saw their occupancy rates suffer, dropping between 5-10% in the first half of the year, expecting the downward trend to continue throughout the year.
Theocharous said that Limassol hoteliers have also decided to give out special offers by pushing down their profitability.
Famagusta CHA President Doros Takas said that the region’s hoteliers saw their occupancy rates drop by 7-10%, with profits dropping up to 15%.
Takas agreed that stakeholders should work towards increasing the island’s connectivity.
Larnaca hoteliers have seen their occupancy rates drop by 10-15% in June compared to the same month last year, while profits dropped by 20%.
CHA Larnaca president Ioanna Florentiadou lashed out at local authorities for the unacceptable situation of the road network and infrastructure.
“Some 80% of the hotels are located along the coastal front of Oroklini – Dhekelia; an area without a proper road network, sidewalks, cycle paths or even a pedestrian promenade,” said Florentiadou.
