Cyprus' tourism industry is still assessing the impact of the recent geopolitical crisis in the Middle East, with hoteliers warning that the sector faces a critical juncture despite signs that the losses remain manageable.
The issue dominated discussions at the annual general assembly of the Cyprus Hoteliers Association (PASYXE), where industry leaders called for a comprehensive strategy to strengthen the resilience of the tourism sector and better prepare it for future crises.
Outgoing PASYXE president Thanos Michaelides said Cyprus tourism had moved from the record-breaking performance of 2025 to confronting the consequences of regional instability and planning for a more resilient future.
According to research conducted by PASYXE in cooperation with the Greek Institute for Tourism Research and Forecasts (ITEP), bookings fell and cancellations increased by around 30 per cent during March and April. Negative trends continued into May and June, although conditions showed some improvement.
Calls for a crisis management mechanism
Michaelides said the way Cyprus manages the current situation could have a significant impact on tourism performance in 2027.
He called for stronger international promotional campaigns and greater penetration into markets such as Germany, Switzerland and countries in Central and Northern Europe.
He also proposed the creation of a permanent crisis management team involving hoteliers, travel agents, airports and the Deputy Ministry of Tourism to improve coordination during periods of disruption.
In addition, Michaelides suggested establishing a formal tourism advisory body to strengthen cooperation between the public and private sectors.
New digital platform launched
During the assembly, PASYXE announced the launch of Xenios Analytics, a new digital platform designed to collect and analyse data on hotel performance, operating costs and market trends.
The initiative aims to support evidence-based policymaking and provide the industry with better tools for strategic planning.
Michaelides also stressed the importance of improving competitiveness through investment in quality, innovation and workforce training, while reducing dependence on a limited number of source markets and improving Cyprus' air connectivity.
He further renewed calls for the creation of a unified licensing authority, or "One Stop Shop," to streamline procedures for businesses.
President says losses remain manageable
President Nikos Christodoulides, addressing the assembly, acknowledged the impact of the Middle East crisis but said the losses sustained by the tourism sector remain manageable.
He said the government's objective is to extend the tourism season at least through the end of November in an effort to offset losses recorded earlier in the year.
PASYXE elects new president
The association also marked its 90th anniversary during the event.
PASYXE director general Christos Angelides described the milestone as an important moment for Cyprus' hotel industry, noting the organisation's long-standing contribution to the country's economic and social development.
Meanwhile, Yiannos Pantazis was elected unopposed as the new president of PASYXE, succeeding Michaelides after three years in the role.
“Fully aware of the responsibility, I assume my duties with the aim of contributing, to the extent possible, to the progress of the hotel industry and Cyprus tourism,” Pantazis said in his first statement as president.
A new board of directors was also elected during the annual general assembly.
