Cyprus is experiencing the apex of its summer tourist season, with hotels across the island expected to reach near-full capacity of 90% to 95% starting this weekend and continuing through August 18. While the tourism sector enjoys this boom, a prominent industry leader is sounding the alarm over the growing problem of unlicensed accommodations threatening the market.
According to Thanos Michaelides, President of the Cyprus Hotels Association (PASYXE), this period marks the highest occupancy of the year. He noted, however, that despite the surge, rooms are still available for travelers in the island’s coastal and mountain regions. Looking ahead, Michaelides forecasts a slight easing after this peak, with occupancy rates expected to moderate to around 80% during the final ten days of August as local holidaymakers return home.
Evaluating the season as a whole, he described it as “satisfactory,” stating that visitor traffic is comparable to 2024 levels, even after some early-season fluctuations in booking patterns.
Beyond the positive numbers, Michaelides highlighted a significant challenge facing the industry: the rise of illegal, unregulated rental properties. He made a clear distinction between legally operating short-term rentals and the underground market, which he identified as the primary issue. These unlicensed establishments not only create unfair competition by drawing guests away from legitimate hotels and licensed rentals but also pose a risk to the nation’s tourism brand.
“When operators function outside the legal framework, it… risks damaging the island’s reputation if problems arise for guests,” Michaelides warned. He stressed that these illegal operations also lead to a loss of tax revenue for the state. He called for decisive government action, emphasizing the need for a clear legal structure and strict enforcement to ensure all businesses in the tourism sector comply with the law.
Source: stockwatch.com.cy