Nicosia, Cyprus. Cyprus hotels recorded an improvement in June compared with the previous three months, but the market remained below the levels normally expected for the season, according to Cyprus Hoteliers Association chairman Thanos Michaelides.
Michaelides told the Cyprus News Agency that hotel traffic in June was clearly better than in March, April and May, when the sector faced pressure from weaker visitor flows and a more uncertain booking environment.
Occupancy remains below normal levels
Michaelides said the improvement had not yet returned the industry to the usual levels for this time of year. He added that reservations were showing an upward trend but continued to remain below normal seasonal levels.
He said the situation varied significantly by district and by hotel. In Famagusta district, average hotel occupancy in June stood at around 60 per cent, while in Paphos it reached about 70 per cent, with the decline there comparatively smaller than in other areas.
Regional differences
Michaelides said occupancy levels during the same period last year were around 90 per cent under normal conditions, highlighting the gap the sector is still trying to close.
He said Limassol was in a relatively stronger position, partly because it also benefited from business tourism. He added that the more limited supply of beds in the district had helped support occupancy rates.
According to Michaelides, Limassol was also recording lower occupancy than in previous years, although the decline was less pronounced than in other regions.
Profitability and source markets
Michaelides said hotels needed high occupancy rates in order to be profitable. While profitability is assessed on an annual basis, he said the main tourism season effectively lasts around six months, making strong performance during that period essential.
On source markets, Michaelides said the United Kingdom remained Cyprus’ most important tourism market and continued to lead arrivals. He also referred to positive signs from Israel, where demand had started to show movement again.