Thanos Michaelides: The German market may become equivalent to the UK's for Cyprus tourism

The need to intensify efforts to attract tourists with an emphasis on European markets, through the strengthening of air connectivity with potential markets, such as Germany, was emphasised by the President of the yprus Hotel Association (PASYXE), Thanos Michaelides.

As he characteristically stated during his speech at PASYXE's AGM, in the presence of - among others - President of the Republic Nikos Christodoulides, a tangible example is the increase in last year's arrivals from Poland, which highlights the positive impact of strengthening air connectivity.

According to Michaelides, in 2024, available seats to and from Poland increased by 22%, resulting in a 23% increase in visitors. He went on to note that in 2024, Poland was the third largest market with 337,000 arrivals.

In a similar way, he indicated, "we should seek similar openings in other potential markets that can contribute substantially to improving the performance of our tourism."

Such an example, the President of PASYXE underlined, is Germany, the largest market in Europe.

According to official data, Michaelides said, "in 2023, 77% of the German population traveled abroad at least once for vacation, a percentage corresponding to 50 million people, out of a total population of 83.28 million. It is worth noting that, in the United Kingdom, the corresponding percentage was only 42%, out of a population of 68.35 million," he continued.

Cyprus, according to 2024 data, added Michaelides, welcomed 228,000 tourists from Germany, which ranks it as the fourth largest tourism market for the country, indicating that "these numbers correspond to only 6% of our total tourism."

"We do not underestimate the amount of investment that will be needed for such an opening, but if we operate effectively, we can achieve a market comparable to that of the United Kingdom," he further emphasised.

The Norwegian example for attracting workers

Regarding human resources, which remains an issue of major importance, the President of PASYXE stated that "the difficulties in finding suitable and sufficient human resources remain."

According to Michaelides, "a possible approach could be the example of Norway, where rapid tourism growth revealed serious gaps in specialised personnel, as young people avoided related professions, considering them precarious."

After referring to Norway's actions to attract workers to the tourism industry, the President of PASYXE said that the Association recently initiated a discussion on the utilisation and creation of training programmes in hotel industry professions, in collaboration with the Human Resource Development Authority.

The aim of this initiative, he explained, is the reintegration of people aged 55–65, with all the positive results that their activation can bring about both for the economy and for society as a whole.

Year-round tourism

Regarding year-round tourism, Michaelides avoided using the term "extension of the tourist season," since - as he explained - this goal needs readjustment and should evolve into a year-round activity.

"To encourage young people to invest in studies and skills in the tourism sector, we must ensure prospects and professional stability. This implies limiting seasonality in the labour market, strengthening trade, increasing public revenues and continuous investment in education," he pointed out.

"The transition to a year-round tourism model also requires upgrading infrastructure, with an emphasis on special forms of tourism, which can contribute substantially to the development of the sector," he further pointed out.

National Tourism Strategy 2035

In his speech, the President of PASYXE also referred to the draft for the National Tourism Strategy 2035, indicating that "the quantitative targets proposed are lower compared to those set in the Tourism Strategy 2030."

"These targets are considered conservative, given the dynamics of the Cypriot tourism industry, but also the optimistic forecasts of international organisations, such as the World Travel and Tourism Council," he stressed.

As he explained, "at a time when our tourist arrivals have recorded a remarkable increase, with a compound annual growth rate of 5.2% during the period 2014-2023, we believe that the target for the next 12 years should follow the existing dynamics of our country."

Michaelides' full address, translated from the original Greek, can be read below:

Your Excellency President of the Republic of Cyprus

Honourable Party Leaders and Representatives

Honourable Ministers

Your Excellencies Ambassadors

Honourable ladies and gentlemen of Parliament

Honourable Deputy Minister of Tourism

Your Eminence, Bishop of Mesaoria, Gregorios,

Dear Members and Distinguished Guests

It is with great pleasure that I welcome you to the Annual General Meeting of the Cyprus Hotels Association. Our Association, as the longest-standing association, founded in 1936, has been one of the most essential bodies in the tourism sector over time.

With documented recommendations and proposals, it contributes substantially to the upgrading of the tourism product, while simultaneously protecting the well-being of its members and strengthening the economy of our country.

Evaluating 2024, we record the positive fact that tourist arrivals set a record, exceeding 4 million, compared to 3.8 million in 2023 - an increase of 5.1%.

However, we must point out that the increased arrivals do not translate into corresponding overnight stays in our hotels, since a significant percentage - around 34% - is channeled either to the occupied territories or to licensed or unlicensed short-term rental accommodations.

This means that thousands of arrivals at the airports of the Republic of Cyprus leave zero economic footprint, as they use our airports to spend their holiday budget in the occupied territories. As a result, we shoulder the environmental burden, without any substantial benefit.

The positives of 2024 include the increase in total tourism revenues, which amounted to 3.2 billion euros, compared to 3 billion euros in 2023. An increase of 7.3%.

Ladies and gentlemen,

Geopolitical challenges remain an exogenous factor that often overturns our plans and assessments.

The situation in the Middle East makes it imperative that we once again demonstrate the necessary reflexes. We need to intensify our efforts to attract tourists, with an emphasis on European markets, in order to limit the consequences of similar situations.

On this same stage last year, we had highlighted as a significant challenge the limited air connectivity, which affects Cyprus' access to most potential tourism markets.

A concrete example is the increase in arrivals from Poland last year, which highlights the positive impact of enhanced air connectivity. Specifically, in 2024, available seats to and from Poland increased by 22%, resulting in a 23% increase in visitors.

According to 2024 data, Poland was the third largest market with 337 thousand arrivals, Israel was in second place with 425 thousand arrivals, while the United Kingdom remained in first place with over 1.3 million arrivals.

In a similar way, we should seek similar openings in other potential markets that can contribute substantially to improving the performance of our tourism. One such example is Germany, the largest market in Europe.

According to official figures, in 2023, 77% of the German population traveled abroad at least once for a holiday, a figure corresponding to 50 million people, out of a total population of 83.28 million. It is worth noting that, in the United Kingdom, the corresponding figure was only 42%, out of a population of 68.35 million.

Cyprus, according to 2024 data, welcomed 228 thousand tourists from Germany, which ranks it as the fourth largest tourism market for our country. These numbers correspond to just 6% of our total tourism.

We do not underestimate the amount of investment that will be required for such an opening, however, if we operate effectively, we can achieve a market comparable to that of the United Kingdom.

A major issue for the tourism industry remains human resources. In 2024, 49,592 people were directly employed. However, difficulties in finding suitable and sufficient human resources remain.

A possible approach could be the example of Norway, where rapid tourism growth revealed serious gaps in skilled personnel, as young people avoided related professions, considering them precarious.

Officials had to convince both young people and their parents that the sector offered prospects. They updated promotional messages, featuring leading figures in the field, and created modern education and training programs.

At this point, ladies and gentlemen, I would like us to watch a relevant video together.

Furthermore, Norway, through the Integration Act, promotes the integration of workers aged 55–65 into the hotel industry, mainly in areas such as customer service and administrative positions. This strengthens the human resource with experience and quality characteristics, while at the same time offering these people the opportunity for a second career in a dynamically developing sector.

Following the example of Norway, as PASYXE we have recently initiated a discussion on the exploitation and creation of training programs in professions in the hotel industry, in collaboration with the Human Resource Development Authority. The aim of this initiative is the reintegration of people aged 55–65, with all the positive consequences that their activation can bring both for the economy and for society as a whole.

At this point, I would like to refer to year-round tourism. I consciously avoid the term 'extending the tourist season', as I believe that this goal needs to be adjusted and should evolve into a year-round activity.

To encourage young people to invest in tourism education and skills, we must ensure prospects and job stability. This means reducing seasonality in the labor market, boosting trade, increasing public revenues, and continuing investment in education.

The transition to a year-round tourism model also requires upgrading infrastructure, with an emphasis on special forms of tourism, which can contribute substantially to the development of the sector.

For the development of conference tourism, conference centers are required near airports. Correspondingly, sports tourism requires appropriate infrastructure in tourist areas and support for events that highlight the advantages of our country. Events such as the Ayia Napa and Paphos Triathlons, the Youth Soccer Festival, as well as the Larnaca and Limassol Marathons, attract visitors during periods of low demand, contributing to the extension of the tourist season.

Furthermore, Cypriot gastronomy must be placed at the center of our promotional activities, as destinations with a strong gastronomic identity occupy a high position on the global tourism map.

Ladies and gentlemen,

I would also like to address the important issue of sustainability, which is no longer a distant prospect but an immediate need that affects our daily lives and the future of our industry.

Challenges such as high energy costs and water scarcity due to drought call for immediate action. We must provide immediate, practical solutions to current problems, while reducing our energy footprint and charting a sustainable path for tourism and our economy.

Our strategy must be aligned with modern reality and global trends, ensuring the resilience and competitiveness of our tourism product.

Through coordinated action between the private sector and the State, it is necessary to secure sustainability, as well as strengthen the competitive position of Cyprus, based on the country's economic capabilities and fiscal framework.

The marketing and communication of our products is also crucial. To attract the modern tourist, we must send the right message to each market and each type of potential visitor.

Today's technology, combined with the appropriate investment, can make a decisive contribution to our effort.

Tools such as artificial intelligence allow us to better map potential customers and target them individually, geographically and qualitatively, depending on the forms of tourism we wish to develop.

Mr. President, ladies and gentlemen.

Undoubtedly, we all know the importance of tourism for the prosperity of our country. After all, let us not forget that, especially after the Turkish invasion of 1974, tourism played a decisive role in the recovery of our country. Today, we welcome the positive performance and continue to build on it, year after year.

We, as PASYXE, believe that the time has come to raise the bar and set more ambitious goals. To adopt a new planning model, which will not be limited to annual assessments, but will aim to achieve substantial results over a decade.

With vision, strategy and cooperation of all stakeholders, we can make Cyprus a capable competitor among the top tourist destinations.

In this context, our view is that the quantitative targets proposed in the draft of the National Tourism Strategy 2035 are lower compared to those set in the Tourism Strategy 2030.

These targets are considered conservative, given the dynamics of the Cypriot tourism industry, but also the optimistic forecasts of international organisations, such as the World Travel and Tourism Council.

We had also submitted this position in our proposals to the Deputy Ministry of Tourism in August 2024, within the framework of the consultation for the preparation of the new National Strategy.

At a time when our tourist arrivals have recorded a remarkable increase, with a compound annual growth rate of 5.2% during the period 2014-2023, we believe that the target for the next 12 years should follow the existing dynamics of our country.

Here I would like to emphasise that PASYXE will always remain a productive and constructive interlocutor on all tourism issues.

We have a view, ideas and the will to contribute substantially to the development of Cypriot tourism, taking into account global trends and the challenges of the industry.

In this context, this year, with significant progress, we achieved the renewal of the Collective Agreement in our industry until the end of 2027. We achieved this with the need for stability and tranquility in mind. We moved forward with a sense of responsibility, fully aware of the importance of the development of the sector for the country's economy.

It is also important to note that PASYXE contributed and collaborated closely with all stakeholders on the crucial issue of hotel licensing. We would like to thank the Government for the recent amendment to the bill regarding licensing, a development that responds to chronic needs in our sector and substantially facilitates entrepreneurship in tourism.

Warm thanks also go to the House of Representatives, which approved the relevant framework, substantially supporting our requests and efforts.

At the same time, it is necessary to proceed with the creation of a single, specialised licensing service (One stop shop) with clear procedures and a stable institutional framework, in order to fully ensure consistency and speed.

On this occasion, I would like to refer to an important proposal that PASYXE intends to submit for discussion to the Ministry of Interior. The proposal concerns the granting of permits for the construction of housing units for the staff of hotel businesses.

The implementation of this proposal offers a substantial solution to a long-standing problem faced by the hotel sector in relation to staff housing, while at the same time contributing to the decongestion of the rental market in tourist areas, with a positive impact on society and the economy more broadly.

In closing, I would like to mention the importance of the upcoming organisation of the 91st HOTREC General Assembly in Cyprus, which will take place on October 15-17 under the supervision of PASYXE, in view of Cyprus' presidency of the EU in the first half of 2026.

HOTREC is the leading European organisation representing the hospitality sector, with 36 national member bodies.

It is customary for a HOTREC Member country to organise the General Assembly during the period preceding the country's presidency. This, as you understand, is a huge honor for our Association and the tourism industry, as well as for Cyprus in general.

PASYXE's participation in HOTREC is of strategic importance, as it ensures timely information on European developments in tourism. At the same time, given the persistent efforts of Turkish Cypriots to be accepted as members or observers in HOTREC, it becomes absolutely necessary to maintain PASYXE's position as the sole representative of Cyprus, in accordance with the fundamental principle of the Organisation's Statutes "One Country – One Vote".

We therefore look forward to the practical support of the State, in order to ensure the continuation of the active and worthy representation of our country in this important European organisation.

Mr. President,

I would like to express our warm thanks for your presence at the General Assembly of our Association.

As PASYXE, we invite you to contribute substantially to the formation of a new, modern strategic planning model for our sector. We are confident that you will stand by us as a valuable ally in this collective effort.

Special thanks to:

• At the Deputy Ministry of Tourism,
• To the competent Committees of the Parliament and in particular to the Committee on Commerce, Industry and Tourism,
• To the CCCI, the OEB, the STEK, the ACTA and the PASYDIXE,
• To Hermes Airports and the airlines,
• To Trade Unions,
• As well as to representatives of the Media.

I also owe warm thanks to the Official Strategic Partner of the PASYXE Annual General Meeting, EUROBANK CYPRUS, as well as to the Official Sponsors COFFEE CARE and UiBS Hospitality.

In closing, I thank my colleagues, the Board of Directors of PASYXE, the General Director, the Secretariat and all the Members of the Association for their valuable support and cooperation.

I am confident that with the contribution of all of us, the tourism industry of Cyprus will move towards even better days.

Thank you.