Cyprus Bed Supply Overwhelmed By Demand - By Pambos Michaelides
Cyprus has seen a booming growth in terms of tourism in 2016. This has been primarily driven by the political situation in neighboring countries as well as a refreshed approach to strategy by the Cyprus Tourism Organization. Supply of beds has been playing catch-up with demand, and multiple tourism related projects are currently underway. However, as tourism numbers are forecasted to continue to grow, with probably accelerated rhythms in the coming years, the market needs to find more ways to cope with the demand.
Tourism is and will be growing exponentially in Cyprus in the next few year and the current number of beds is already reaching its limit.
The Supply - Demand Tug of War
Tourism has always been one of Cyprus’s key products contributing up to 10.9% of our island nation’s GDP in 2015. In the past few years tourism in Cyprus has been growing and in 2016 it has witnessed a huge spike from 2015’s 8.9% growth to 19.8%, and it is predicted to carry on with these rates.
However, even though tourism has been growing, the recent economic crisis has caused the total bed supply on the island to decrease with many establishments being unable to maintain or develop, with an average of 221,000 visitors monthly (including domestic tourism and not accounting seasonality) in 2015 and a total bed supply of 84.5k across the island, down 1.7% from 2014. That is a 2.5/1 ratio, and given that the average length of stay tourists reaches c.10 days, undersupply is apparent.
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