Outlook for tourism in Cyprus

2016 has been the best year in tourist arrivals in history of Cyprus tourism. According to research done by Resolute Management such factors as the weak Euro, political instability in neighboring countries, improvements of the tourism products by investments in assets, promotion of culinary, agro and wellness tourisms will lead to future growth of the tourist industry in Cyprus. Moreover, the Cyprus Government is redesigning and preparing a new national strategy on tourism that will further promote Cyprus and aim to enhance its advantages as a tourist destination. Since 2013, a dozen new airlines are flying to Cyprus connecting many new cities and regions of Europe, Gulf and Israel to Cyprus.

Cyprus Tourists Arrivals

The annual number of tourist arrivals to Cyprus has experienced substantial growth over the last three years. 2016 is considered as a record year- in 2016 tourists’ arrivals grew by 19% to 2.7 million against 2015.

Cyprus Hotel Occupancy

The average hotel occupancy in Cyprus has been growing during the last 3 years and reached 70% in 2016, with the highest net occupancy rate exhibited by tourist villages’ properties at 89, 1%.

Given ZENING’s unique wellness service proposition and established track record with major wellness tour operators the current tourism sector dynamics offers significant opportunities to drive stable growth by pursuing a focused targeted marketing and maintaining high quality of service.

Cyprus Economy

According to EU Commission, Cyprus’ economy emerged from 2013 recession in 2015, with real GDP growth reaching 2.9% in 2016 against 2015.  An important factor leading to stabilized economy are the improved outlook for investment based on the stabilizing housing market in Cyprus and the increase in private consumption.

European Tourism Outlook

According to ITB World Travel Trend report, European outbound travel grew by 2.5% in 2016, with good growth from the UK (+6%) and Germany (+4%). The outlook for 2017 is very positive, with world outbound travel predicted to grow between 4% and 5%, with stronger growth out of Europe. A key trend in 2016 was that political unrest or terror attacks did not affect the overall volume of foreign trips but certainly did the choice of destination, with destinations that were perceived as dangerous lost millions of visitors.

Wellness tourism

The global wellness tourism revenue is growing at 6.8% annually during 2013-2017 almost twice faster than the general tourism sector. Travelers made 691.0 million wellness trips in 2015, which is 17% more trips than in 2013.

According to GWI, the wellness tourism is projected to grow at an annual average 7.5% during the next 3 years and will reach USD 808 billion in 2020.