Restaurants and bars in Cyprus have a good September. Costs continue to rise.

Restaurants and bars in Cyprus recorded occupancy rates exceeding 80% in September, according to Fitos Thrasivoulou, president of the industry organization OSIKA. After a difficult start to the year, restaurants have seen an improvement, and last-minute bookings offer hope that business will continue into October.

The increased number of customers helps entrepreneurs settle their debts and continue their operations. At the same time, the head of OSIKA points out that companies' fixed costs have increased by 30–40%. The industry is therefore calling for initiatives to attract tourists in winter as well, and for maintaining air connections to the island.

Restaurants and bars in Cyprus have recovered some of their losses

The beginning of the year looked challenging for the restaurant industry. However, in recent months, the situation has begun to improve, as reflected in the September assessment of restaurant operations.

Thrasivoulou emphasized that Cypriot customers played a significant role in August. Their visits supported restaurants, bars, and other catering establishments. September also proved to be a good month, with businesses expressing satisfaction with the results achieved.

The reported occupancy rate above 80% applies to the sector represented by the organization. This is not an indicator of hotel room occupancy or information that every establishment on the island achieved the same result.

According to the OSIKA president, the level of activity allowed companies to remain open and cover their liabilities. However, he did not provide data indicating how the improvement translated into profits for the industry as a whole.

October bookings give hope

Last-minute bookings are still coming in in October. Businesses are hoping that this will maintain the flow of customers even after the peak season ends.

Thrasivoulou emphasized that maintaining air connections is crucial. Without available flights, it is more difficult to maintain tourist arrivals, and therefore, traffic to establishments that rely on them.

For now, this is cautiously optimistic. The ongoing bookings don't yet predict the outcome for October or the following months. However, they do give the industry hope for further improvement after a challenging start to the year.

The industry wants more tourists in winter

Extending the season remains one of the most important goals for property owners. As the president of OSIKA noted, efforts in this direction have been underway for years, but have not yet resulted in a significant enough change.

The organization is counting on solutions and incentives to help attract winter travelers from Northern European countries. Thrasivoulou expects the involvement of the Deputy Ministry of Tourism and other state institutions.

For the restaurant industry, a longer season means the ability to serve customers throughout most of the year. This is especially important for businesses that must cover fixed expenses even when tourism declines.

Costs 30-40% higher

Improved attendance does not address the problem of rising expenses. The president of OSIKA estimates that fixed costs for businesses have increased by 30–40%.

The statement presented does not specify the exact period of this comparison. Therefore, it should not be interpreted as confirming growth solely in the last year.

Higher costs mean that high occupancy alone doesn't necessarily translate to equally high profitability. Businesses need adequate sales to cover expenses and maintain operations even outside of peak seasons.

The next season also depends on the situation in the region

Looking ahead to the next tourist season, Thrasivoulou expressed hope for peace and stability in the region, noting that armed conflict and insecurity have serious consequences for tourism in the Republic of Cyprus.

A strong September is giving restaurateurs a respite. Maintaining the improvement, however, will depend on continued arrivals, flight availability, and whether they can attract more guests outside of the peak season.

Sources: Cyprus Mail, CNA