Axia Valuers

Cyprus Tourism & Properties Overview 2022

Tourism is one of the world’s major economic sectors. It is the third-largest export category (after fuels and chemicals), and in 2019 accounted for 7% of global trade. The tourism industry is one of Cyprus’ main service sectors and over the past 10 years it has been the source of 8% - 13.1% of Cyprus’ annual GDP. In 2020 when the COVID-19 pandemic put a halt on international tourism, Cyprus’ tourism industry took a dive. The contribution of travel and tourism to GDP (% of GDP) in Cyprus grew by 3.6% between 2018 and 2019 (from 21.9 % in 2018 to 22.7 % in 2019).
The tourism sector in Cyprus relies on its natural resources and ideal weather of 340 days of sunshine and its pristine beaches – which are consistently ranked as some of the best in Europe for their high environmental and quality standards. The Mediterranean lifestyle and expanding tourism offerings of Cyprus have strengthened its status in the global tourism market as a destination of choice for travelers of all budgets – with accommodation ranging from rustic retreats and vast Airbnb options to bespoke hotels and luxury resorts.
In 2020 revenue from tourism accounted for only 1.8% of Cyprus’ GDP, whereas this percentage increased to 6.5% in 2021. The lack of revenue from tourism had a huge impact on Cyprus’ hotel industry, with many hotels only operating for the three – four summer months of 2020. A review of historical cycles illustrates that the hotel industry will experience a decline in asset values internationally due to COVID-19 and the economic downturn, as according to reports by international real estate experts, tourism is not expected to return to pre-crisis levels until 2024-2025.
Tourism is a major pillar of the Cyprus economy and new and existing destination markets are being focused on in order to cover the loss in tourism. The National Tourism Strategy 2030 for Cyprus highlights a clear strategy for the country and for development of the tourism industry, which provides an optimistic outlook for Cyprus tourism industry in the future. Wfor the winter months with only a 10-12% decline. In 2021 the arrivals of tourists between October and December, compared to tourist arrivals during the same period of 2019, highlighting a near recovery in 2021 to 2019 levels for the winter months with only a 10-12% decline.

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