Nicosia, Cyprus. Cyprus hotel operators awaited details on Thursday of a government wage subsidy scheme expected to be announced on April 2, as the country seeks to cushion tourism from the fallout of the Middle East war.
Talks with stakeholders and unions
Officials and tourism stakeholders held contacts and meetings over the past 24 hours to shape a broadly acceptable proposal, while trade unions met labour ministry representatives to set out concerns over the scheme under preparation.
According to information published by Philelenews, unions urged the ministry to ensure equal treatment for all employees, saying any final plan must safeguard workers from discrimination and prevent practices that could sideline Cypriot and other EU nationals in favour of third-country workers.
Unions said the scheme should guarantee equal access to employment and avoid distortions in a sector where employment arrangements often vary from one worker to another.
Designing the subsidy formula
The labour ministry faces the challenge of designing a formula that supports both employers and staff without creating inequalities or a two-speed workforce across the hotel industry.
Hotel associations seek higher subsidy
Hotel associations Pasyxe and Stek were reported to have sought an increase in the wage subsidy proposed by President Nikos Christodoulides, from 30 per cent to a level closer to 50 per cent.
Under the president’s original proposal, the subsidy would apply to hotel units and tourist accommodation operating throughout the period from April 1 to April 30, 2026.
Government assessment of tourism conditions
Government spokesman Konstantinos Letymbiotis said on Tuesday that the state’s aim, together with the relevant bodies, was to secure another successful tourist season despite disruption caused by the regional conflict.
Letymbiotis said the situation was being assessed almost daily by both the government and hoteliers, adding that authorities were encouraged by signs of improvement as flight schedules and everyday conditions in Cyprus were returning to normal.
He also said almost all airlines were moving back towards full operations, while nine new flights had been announced by new carriers to and from Cyprus.
What measures do you think should be prioritised to ensure equal treatment for employees under the wage subsidy scheme?
