The President of the Paphos Hoteliers Association, Evripidis Loizidis, has called for government intervention to address problems preventing hotel licensing, warning of serious consequences for the sector from the beginning of 2027.
Speaking to the Cyprus News Agency (CNA), Loizidis described licensing as one of the most significant challenges currently facing the hotel industry.
He said that out of 728 hotels operating across Cyprus, only 141 currently hold operating licences.
According to Loizidis, responsibility for the low licensing rate does not lie solely with hoteliers, as there are administrative, procedural and institutional obstacles that require immediate state action.
Temporary licences expire in 2027
The President of the Paphos Hoteliers Association said some of the issues require legislative changes or amendments to existing regulations.
He stressed that the necessary adjustments must be made before 1 January 2027, when temporary licences expire, in order to avoid serious consequences from the implementation of the new framework.
July occupancy drops by 10%
Commenting on this year’s tourism season, Loizidis said July ended with hotel occupancy levels down by 10% compared with the same month in 2025.
Despite the decline, he said the situation had improved compared with May and June, when losses reached 15%.
For August, he expressed cautious optimism, estimating that occupancy levels would remain satisfactory, although many bookings continue to be made at the last minute.
However, he raised concerns about the months ahead. September bookings are currently around 15% lower than last year, with no significant recovery signs so far, while October is expected to be more challenging.
Hotel prices fall by more than 20%
Loizidis said part of the tourism market appears to have been lost due to the war, with some visitors choosing alternative destinations.
At the same time, higher living costs and financial pressures are causing many travellers to delay decisions and make reservations closer to their departure dates.
He said the biggest challenge for the hotel sector is not only lower occupancy but also the significant reduction in prices.
According to Loizidis, hotel prices have fallen by more than 20%, affecting revenues and the sustainability of businesses.
Israel could become Paphos’ second market
The Israeli market has shown particularly positive growth, according to Loizidis, with visitor numbers increasing significantly.
He said the rise has also been supported by the large number of air connections between Cyprus and Israel.
If the trend continues until the end of the tourism season, Loizidis estimated that Israel could become Paphos’ second-largest tourism market after the United Kingdom.
Also read: Cyprus becomes favourite summer destination for Israeli celebrities
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