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- Demand is especially strong around the August 15 holiday period, when visitor arrivals and accommodation bookings traditionally increase.
- July occupancy ended about 10% below last year, though the decline was smaller than the losses seen in May and June.
- September occupancy is currently estimated at 75% to 80%, with October expected to be even more difficult.
- Hotel prices have fallen by more than 20%, significantly affecting revenues despite relatively high occupancy levels.
Tourism in Paphos is expected to remain at high levels in August, with hotel occupancy forecast to reach between 85% and 90%, according to Paphos Hoteliers Association President Evripides Loizidis.
The outlook is particularly strong around the August 15 holiday period, when Paphos traditionally sees increased visitor arrivals and strong demand for accommodation.
The high occupancy confirms that August remains one of the most important months of the tourism season for the district, despite wider pressures on the market, Loizidis said.
However, he remains cautiously optimistic about the month, noting that a significant share of bookings is being made at the last minute.
According to Loizidis, the trend is largely linked to financial pressures on consumers, who are delaying holiday decisions while searching for the best possible prices.
July occupancy fell by 10%
The improvement in August follows a July that, despite positive tourism activity, ended with occupancy around 10% lower than in the same month last year.
The decline was smaller than the losses recorded in May and June, when occupancy fell by around 15%, raising concerns across the hotel sector.
The July figures suggest that the tourism market has gradually started to recover, although it has not yet returned to last year’s levels, Loizidis said.
The August 15 period is generating particularly strong demand, with increased activity across hotels, tourist accommodation and restaurants.
The period is considered crucial for hotels, providing a boost during a season marked by lower occupancy in several months and significant pressure on prices.
Concerns grow over September and October
The outlook becomes less positive beyond August.
Current occupancy for September stands at around 75%-80%, representing a decline compared with last year. Loizidis estimates the decrease at around 15%, with no significant signs so far of a major improvement.
Conditions are expected to be even more difficult in October, raising concerns among tourism professionals as Cyprus continues to seek ways to extend the tourism season.
Hotel prices down by more than 20%
Despite the decline in occupancy, Loizidis said the biggest challenge for hotels is not solely the number of visitors.
Particular concern has been raised over the significant drop in prices, which have fallen by more than 20%, according to the association president.
The decline is directly affecting hotel revenues and the viability of businesses. Even when occupancy remains relatively high, lower average room rates significantly limit overall revenue.
Geopolitical tensions affect demand
Geopolitical instability is also among the factors affecting this year’s tourism season.
Loizidis said part of the market appears to have been lost because of the war, with some potential visitors choosing alternative destinations for their holidays.
At the same time, the rising cost of living and wider economic pressures have changed traveller behaviour.
Many consumers are delaying their holiday plans and booking close to their departure date while looking for cheaper options.
The increase in last-minute bookings makes it more difficult to accurately forecast tourism trends for the coming months.
Israeli market records strong growth
The Israeli tourism market is showing particularly positive results, with a significant increase in visitors to Paphos.
According to Loizidis, the growth in Israeli visitors is also supported by the large number of air connections between the two countries, making Paphos more accessible.
If the trend continues until the end of the tourism season, Israel could become Paphos’ second-largest tourism market after the UK.
The development is considered particularly important for the destination as it helps diversify the markets on which Paphos tourism depends.
Mixed picture for the tourism season
The tourism season in Paphos has so far produced a mixed picture.
August, particularly the August 15 period, is generating strong visitor flows, with occupancy reaching 85%-90%.
However, losses recorded in previous months, the more than 20% decline in prices, weaker demand from some markets and uncertainty surrounding September and October continue to create challenges for the hotel sector.
The coming period will be crucial for the remainder of the season. The performance of last-minute bookings, international markets and, most importantly, the ability to maintain demand after August will largely determine the final outcome of this year’s tourism season in Paphos, Loizidis concluded.
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