Paphos hotels are expected to see occupancy rates exceed 90 per cent during the Kataklysmos holiday weekend, as strong demand from Cypriot visitors gives the sector a welcome, if short-lived, boost.

Paphos Hoteliers Association president Evripides Loizides told Cyprus News Agency (CNA) that the picture for the three-day break was particularly positive, with most hotels already operating at very high occupancy levels.

He said demand for the period is expected to rise above 90 per cent, confirming Paphos’ position as one of Cyprus’ most popular destinations for short breaks.

However, Loizides cautioned that the improvement would not be enough to offset the wider weakness seen so far this season.

“This is essentially two overnight stays in an entire month. Kataklysmos is not enough to cover the losses,” he said, noting that May had recorded a significant fall compared with last year.

According to Loizides, average hotel occupancy in Paphos was down by 20 to 25 per cent in May compared with May 2025, while April was also weak, with the decline reaching around 27 per cent.

He attributed part of the drop to the growing shift towards short-term rentals, saying Airbnb-type accommodation is now absorbing a significant share of the Paphos market, estimated at between 30 and 33 per cent.

At the same time, he referred to tourist flows towards the occupied areas, which he said were also taking a sizeable share of visitor traffic.

Looking ahead to June, Loizides said the booking picture remained cautious, with current data broadly in line with May and losses again estimated at close to 25 per cent.

“Unfortunately, many people are choosing other forms of accommodation instead of hotels,” he said.

He added that the sector’s main concern was no longer only the financial performance of hotel businesses, but also the ability to retain staff during a difficult season.

“Hoteliers can withstand a difficult year. The issue is not to lose staff, because if they leave the sector, it will be difficult for them to return,” he said.

Loizides also pointed to weaker performance from key tour operators and source markets.

He said Jet2 is recording a decline of around 20 per cent in arrivals through Larnaca airport and about 14 per cent through Paphos airport.

TUI is also showing a significant drop compared with previous years, he added. Although its losses were initially around 30 per cent, they have since narrowed to 23 to 24 per cent, a level still considered particularly high.

As for individual markets, Loizides said the Israeli market continues to perform poorly, while Poland appears to be the only market maintaining positive momentum this season.