Nicosia, Cyprus. Cyprus hotels are placing greater focus on local holidaymakers this summer as the sector seeks to limit the impact of weaker foreign bookings, higher operating costs and continuing uncertainty linked to the Middle East crisis.
Hotels are avoiding broad price cuts, instead relying on targeted offers, domestic tourism campaigns and last-minute deals to fill rooms while protecting margins.
Arrival trends and seasonal pressure
Pressure on the sector has been building since spring, after geopolitical tensions in the region affected confidence in several eastern Mediterranean destinations.
Tourist arrivals fell sharply in March and April. In May, arrivals reached 455,680, down 4.9 per cent from 479,160 in May 2025, according to the Statistical Service (Cystat).
This represented an improvement from the 30.7 per cent decline recorded in March and the 27.6 per cent fall in April. Even so, arrivals in the first five months of the year were still 13.3 per cent lower than in 2025, leaving hotels more reliant on late bookings, domestic demand and a steadier flow from key foreign markets.
Domestic market gains importance
The local market has become more important for the hotel industry. During the summer months of 2025, trips abroad by Cyprus residents reached 583,051, up 16.4 per cent from a year earlier, according to Statistical Service data processed by Politis.
Greece remained the main destination, with 201,316 trips in June, July and August 2025, compared with 195,446 in the same period of 2024.
Trips to the United Kingdom fell slightly to 46,849 from 48,016, while Italy recorded a sharp increase to 34,114 from 22,758. Russia, Germany, Poland, Romania, Spain, France, Bulgaria, Hungary, the Netherlands and Georgia also attracted stronger flows.
For Cyprus hotels, even a small shift in that outbound demand could have an effect.
Hotel sector response
Christos Angelides, director-general of the Cyprus Hotel Association (Pasyxe), told Politis that despite the difficulties facing the sector, the current period could also create opportunities for Cypriots seeking better prices.
“Everyone should look at the websites of hotel companies, call hotels and monitor their social networks,” he said.
