Thanos Michaelides: The strategic goal is to extend the tourism season

"We must design, upgrade, and compete." With this phrase, Thanos Michaelides, President of the Cyprus Hotel Association (PASYXE), concluded his speech at the 46th Hotel Industry Conference & HORECA Expo by PASYXE, while also emphasising the importance of a comprehensive strategy for sustainability.

Michaelides presented the optimistic figures recorded for 2024, highlighting that tourist arrivals exceeded 4 million, breaking the 2019 record.

"2024 proved that, despite geopolitical tension, Cyprus' tourism industry demonstrates resilience and adaptability," he stated.

Significant improvement was also observed during low tourist seasons. Specifically, March saw a 10% increase compared to March 2023, November recorded a 13% rise, and December an 8% growth—surpassing even the expansion of the summer months.

The need for year-round tourism

Extending the tourism season throughout the entire year is a key strategic objective.

To achieve this, as Michaelides pointed out, investment is needed in special forms of tourism, such as sports tourism, cultural and entertainment events, as well as tours to wineries, archaeological sites, and religious landmarks.

"There is no single solution to seasonality. We must develop and promote all sectors of tourism simultaneously," he emphasised.

Distributing tourist arrivals throughout the year will not only benefit the economy but also the labour market by maintaining stable employment and enhancing the sustainability of hotel businesses.

Labour relations and sustainable infrastructure

Michaelides also addressed the challenges of the labour market, noting that the recent agreement with trade unions is a positive step toward stability.

"The need for an efficient, flexible, and highly skilled labour market is crucial for the sector’s long-term success," he said.

Additionally, he raised infrastructure issues such as water and waste management. "Travellers now consider a destination’s environmental awareness before choosing it," he pointed out, stressing that Cyprus must set itself apart through sustainable development.

The challenge of short-term rentals and artificial intelligence

One of the key issues raised by the President of PASYXE was the lack of a regulatory framework for short-term rentals like Airbnb. He noted that the absence of legislation leads to tax evasion, destabilises the real estate market, and creates unfair competition for the hotel sector.

At the same time, he highlighted the rapid development of artificial intelligence (AI), emphasising that the tourism industry must invest in education and the integration of AI into business operations.

“The inability to adapt to technological advancements could make us less competitive,” he warned.

Close collaboration between the public and private sectors

Concluding his speech, Michaelides went on to highlight the importance of cooperation between the public and private sectors.

"As the competitive landscape becomes increasingly demanding, we must move forward with speed and strategic collaboration," he stressed.

He said data collection and analysis will be crucial for making informed decisions and shaping policies that will allow Cyprus to lead in the tourism sector.

The conference concluded on an optimistic note, with the belief that Cyprus' hotel industry, as the country’s second-largest employer, will continue to be a pillar of the island’s economic growth.