Insider Business Hotels brace for hard times

Hotels brace for hard times

Hotels face a daunting season ahead amid a world coronavirus pandemic which has closed airports and brought the Cyprus economy to a standstill.

The Cyprus Chamber of Commerce and Industry carried out a survey among hoteliers to obtain a clearer picture of the situation, Demetra Landou reports for Phileleftheros.

A total of 35 companies active in the tourist sector took part. They set out their projections and also submitted proposals.

Here are some of the highlights.

The biggest problems

Inability to repay loans

Inability to pay wages

Lack of liquidity

Reimbursing the advance payments

Uncertainty over the summer

Anticipated drop in bookings (March-April)

UK – 100% see a drop of more than 50% of bookings

Russia – 96% see a drop of more than 50% of bookings and 4% a drop of 25%-50%

Germany – 93% see a drop of more than 50% of bookings and 50% and 7% of 0%-25%

Scandinavia – 91% see a drop of more than 50% of bookings and 9% τa drop of 0%-25%

UAE – 96% see a drop of more than 50% of bookings and  4% a drop of  0%-25%

Anticipated drop in bookings (May-September)

UK – 51% see a drop of more than 50% of bookings, 37% a drop of 25%-50% and 12% a drop of 0%-25%

Russia – 46% see a drop of more than 50% of bookings,, 32% a drop of 25%-50% and 22% a drop of 0%-25%

Germany – 56% see a drop of more than 50% of bookings, 26% a drop of  25%-50% and  18% a drop of 0%-25%

Scandinavia – 36% see a drop of more than 50% of bookings, 32% a drop of 25%-50% and 32% a drop of 0%-25%

UAE – 32% see a drop of more than 50% of bookings,  26% a drop of 25%-50% and 42% a drop of 0%-25%


Of the 35 companies participating, 14.7% expects 10%-20% of staff to be affected, 38.2% expect 20%-50% of staff to be affected. One in two of hotels anticipate more than 50% of staff will be affected

 Other measures for staff:

– 100% temporary suspension of employment

– Maintenance work to employ some of the staff

– No hiring of seasonal personnel

– Use of accumulated leave and unpaid leave

– Reduce salaries and working hours


  • Cutting the VAT rate by at least 50% until December 2020 for the tourist sector
  • Reducing the cost of electricity
  • Freezing the collective agreement
  • Reducing municipal and other taxes
  • Flexibility in human resources programmes
  • Given that hotels have closed and they have no revenue, all their obligations should be frozen until they reopen


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