Looking ahead to 2025, there is a reasonable cause for optimism, although last year’s challenges remain in the frame, Tourism Deputy Minister Costas Koumis said on Friday, adding that Cyprus must evolve and innovate in order to remain competitive.

In a speech delivered at the 46th Cyprus Hotel Summit & Horeca Expo in Limassol, read by the Permanent Secretary of the Deputy Ministry Costas Constantinou, Koumis noted that in 2024, while Cyprus was faced with several challenges, including global uncertainties, economic pressures and shifting travel patterns, the resilience and adaptability of the country’s tourism industry have led to the year concluding with impressive results.

He said that ”2024 simply confirms that tourism remains a crucial pillar of our country’s economy and that, with the right strategies, we can overcome even the most challenging times.”

The Deputy Minister referred to various challenges for 2025 such as climate change, infrastructure limitations, workforce shortages and skills gaps. He noted that the changing climate is already impacting the island’s natural resources such as water availability, which is crucial for tourism-related activities and the overall sustainability of the destination.

He said furthermore that the Deputy Ministry offers incentives to hotels, restaurants and other tourism related establishments to proceed with renovations and upgrades to their facilities, with emphasis in the green transition. He also referred to the measures taken by the government to address workforce shortages including efforts to accelerate the processes for examining applications for the employment of staff from third countries in the tourism sector, as well as signing an MoU with the Government of Egypt to recruit labor from the neighboring country.

Additionally, a program announced a few months ago by the Ministry of Labour, focuses on training personnel during the winter season. He also said that the local concentration of tourists, combined with the seasonality of tourism, are two key issues that the Deputy Ministry is actively working to address through a range of measures.

In his speech the Deputy Minister also referred to Sustainable Tourism Practices, green approach and the aim for Cyprus to develop and promote a unique and compelling destination brand.

“To remain competitive, we must continually innovate and diversify our tourism products. Meeting the evolving tastes and preferences of tourists by finding, developing and promoting the special forms of tourism in which Cyprus can be most competitive, is key to staying relevant and successful”, he said.

The Deputy Minister also said that Cyprus must embrace emerging technologies to enhance the visitor experience, adding that technology can streamline services, improve accessibility, and make Cyprus a more attractive destination for tech-savvy travelers.

He also said that local communities must be at the heart of the tourism strategy and that supporting local businesses, preserving cultural traditions, and involving communities in the planning and management of tourism activities s a key.

“By fostering this spirit of collaboration, Cyprus is well positioned to navigate the challenges of the tourism industry and embrace a future where sustainable growth, cultural preservation, and innovation go hand in hand, ensuring a prosperous and resilient tourism sector for generations to come”, he said.

Clear vision and a path to year-round hotel operation, says PASYXE

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The Hoteliers Association (PASYXE) Head Thanos Michaelides in his speech noted that in the past year the industry reached a new record with tourist arrivals exceeding 4 million travellers.

“We have surpassed both arrivals and revenue figures of 2019, our best year up to now and 2024 has proven that even amid geopolitical unrest, the Cyprus tourism industry has proven resilient and adaptable”, he said.

Michaelides added that the success of 2024 has shown that we have the potential for substantially improving the performance of the sector, provided we develop a clear vision and a path to year-round hotel operation at a level which is financially viable.

He referred to figures that show, as he said, that we can indeed prolong the operation of our hotels throughout the year, with a strategy that addresses the potential areas that can bring more travellers to Cyprus between November and March.

He referred to several areas for promotion such as sports tourism, both for professional athletes and leisure visitors, hiking, and special entertainment events such as concerts and international conferences, special interest tours such as wine tours, archaeological and religious site tours and art events.

“By combining different experiences, we create acumulative effect, more powerful than the sum of its parts. When we elevate the profile of the destination, and improve the performance of the off-peak periods, we will have an evenly spread labour market throughout the year, and a much-improved profitability of the sector. This improved profitability will lead to more investment in our hotels, thus updating and upgrading our hardware and software”, Michaelides noted.

Referring to the need for an efficient, responsive and highly-skilled labour market , he said that they have recently come to an agreement with the labour unions and they are confident in overcoming the labour challenges that many countries are facing.

He also spoke of the need to provide solutions that will allow us to differentiate Cyprus from its competition, adding that as a high value destination, we must take a holistic approach to our offering, ensuring that environmental sustainability is integrated into the business experience.

He called on the government to proceed into creating a legal framework that allows the short-term rental sector to operate in harmony with the rest of the tourism economy.

Michaelides also said that we must invest in acquiring the knowhow and the skills to incorporate Al into our business to remain competitive, pointing out that failure to adapt quickly, may render us less competitive and eventually less relevant, in an increasingly fast-moving global market.

“To achieve our goals, all stakeholders in the tourism industry must take decisive action. Not only must we address the challenges we face but also position ourselves to lead the way setting the pace for the industry and contributing to Cyprus’ broader economic success”, he stressed.