Cyprus tourism industry is experiencing a New Golden Age
Several years of uncertainty and anger following the haircut in Cyprus not only plagued the local communities, but had the damaging knock-on effect of putting off visitors to the area. The Cyprus government’s efforts to revive the economy, boost GDP, and rebrand the island as not just a traditional ‘sun and sea’ destination, but a veritable year-round European holiday spot are beginning to pay off. Cyprus tourism has been on a formidable growth path over the last three years and has been breaking records in both arrivals and revenue, validating Cyprus’ strategy to diversify and upgrade its offering.
Tourism increased by 15% in 2017, and, thankfully, this increase in visitors is translating into an upturn in revenue for the country. Data shows that tourism revenue rose to €2.6 billion from January to November that year. The current year, has showed further promise of growth, with tourism arrivals growing a further 15% in 2018. And this is just the beginning. Cyprus has set big goals through its new tourism strategy and is already on a track to achieve them as projections of international tourist arrivals reaching almost 4 million and generating proceeds of €3.5 billion by 2025 look set to be revised upwards.
A New Type of Tourist
The boom in Airbnb and vacation rentals worldwide has brought with it an emerging demographic of tourist: those looking for a travel experience not offered by traditional hotels – whether they are young couples seeking a slice of local life, families that want access to a kitchen, or business travelers looking for additional privacy.
In Cyprus, the jump in Airbnb guests illustrates both this upward trajectory in tourist numbers, and a diversification in Cyprus accommodation offering. In fact, Cyprus is one of Airbnb’s top growth destinations with a whopping 234% growth in 2018! Its demand scoring (a measure of performance which is calculated by comparing a market to 2000 Top Global Airbnb markets) is 78/100.
Here is a breakdown of the growth by major city. Figures of growth in major cities across Cyprus according to airdna.
Vacation Rentals in Cyprus: Where To Invest
Airbnb hosts in Cyprus are reaping the benefits of a rise in popularity of the short-term rental platform. As the market recuperates, an increase in demand for vacation rentals means that even small-time Airbnb hosts that manage just one property can experience high returns on investment. For example, in Limassol, the average income for a host managing just one entire house listing was over € 18000 over the last twelve months. By renting out one private room, hosts would on average earn €6500 over the same period.
Rental revenue entire house
Rental Revenue private room
Airbnb has evolved from its air mattress roots to offer a wider scope of listings, including professionally-managed properties. These places are often run by an experienced team and include many of the same comforts as a traditional hotel room.
For a vacation rental management company such as Exelair, these comforts, amenities and services are what help them stand out from the competition. The most successful property managers use data to analyse the market and come up with a strategy that will set them apart. We use professional tools and our market insights to give your property an advantage over the ever-growing competition.
Interested in opportunities of short-term rentals in Cyprus? Start by getting in touch with our team to schedule a free consultation.