Tourism activity in the free Famagusta district remains under pressure, with hotels reporting a significant drop in bookings and occupancy rates. According to data from the local branch of the Cyprus Hotel Association (PASYXE), the flow of new reservations is down by around 40% compared with the same period last year.
At the same time, most tourist accommodation in Ayia Napa and Protaras is preparing to reopen, with some units already operating and others expected to resume activity by mid-April.
Occupancy levels significantly lower
The majority of hotels reopening in the two resorts are starting the season with noticeably lower occupancy rates, estimated to be between 40% and 50% lower than during the same period last year. Tourism stakeholders and local business owners say the figures are a cause for concern for the district’s economy.
The data indicate that as long as the conflict in the Middle East continues, conditions in Cyprus’s most tourism-dependent district, as well as in other regions of the island, are likely to remain difficult. The effects extend beyond the hotel sector, impacting businesses that rely on tourism activity.
In Ayia Napa and Protaras, most local businesses depend almost entirely on visitor arrivals, while thousands of hotel workers and employees in tourism-related services are also affected by the slowdown.
Hotels proceeding with reopening plans
The President of PASYXE Famagusta, Panayiotis Konstantinou, told Politis that only a small number of hotels in the district have postponed their reopening dates while waiting to see how developments in the Middle East unfold.
He said the vast majority of hotel operators will proceed with their original plans to reopen their units either in early April or by the middle of the month, in order to honour commitments made to partners and especially to international tour operators.
Hoteliers also aim to send a message to foreign markets that Famagusta district and Cyprus remain a safe destination, ready to receive visitors.
Concerns for the coming months
Despite the reduced occupancy levels, hotels in the district are expected to reopen with state support for staff salaries. The government recently announced a support measure under which 30% of employees’ wages will be covered by the state during April, a scheme applicable to hotel units across Cyprus.
Mr Konstantinou said that if the conflict in the Middle East continues throughout the month, PASYXE will need to reassess the situation with the government to determine how the following months will be managed.
Cancellations easing but still present
The PASYXE Famagusta president added that booking cancellations have decreased recently compared with the first weeks following the outbreak of the war in the Middle East.
“Cancellations are still coming in, but at a lower rate. They mainly concern April and May, while cancellations for the summer months remain relatively limited,” he said.
Regarding Catholic Easter, which falls on Sunday, 5 April, Mr Konstantinou noted that some bookings from Catholic visitors have been recorded in hotels in the area, though not at the level hotel operators had expected before the start of the conflict.