Travel & Tourism - Cyprus | Statista Market Forecast

Cyprus is expected to see a significant increase in revenue in the Travel & Tourism market, with projections indicating a rise to US$168.40m by 2024.
This growth is expected to continue with a Compound Annual Growth Rate (CAGR) of 2.34% from 2024 to 2029, resulting in a projected market volume of US$189.00m by 2029.
The largest market within this market is the Hotels market, with a projected market volume of US$71.53m in 2024.
By 2029, the number of users in Hotels is expected to reach 283.30k users.
The user penetration rate is expected to increase from 37.1% in 2024 to 43.4% by 2029.
The projected Average Revenue Per User (ARPU) is US$358.20.
By 2029, online sales are expected to account for 77% of total revenue in the Travel & Tourism market.
It is worth noting that in comparison to other countries, United States is projected to generate the highest revenue in this market, with a total of US$214bn in 2024.
Cyprus' travel and tourism market is rebounding with a focus on sustainable tourism, cultural heritage, and outdoor activities.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

Cyprus, known for its beautiful beaches and rich history, has seen a steady growth in its Travel & Tourism market in recent years.

Customer preferences: Travelers in Cyprus are increasingly seeking unique and authentic experiences, moving away from traditional tourist hotspots to explore lesser-known destinations. They are also showing a growing interest in sustainable and eco-friendly travel options, supporting local businesses and initiatives that promote responsible tourism.

Trends in the market: One notable trend in the Cyprus Travel & Tourism market is the rise of experiential travel, with travelers looking to immerse themselves in the local culture, cuisine, and traditions. This shift has led to an increase in demand for personalized and off-the-beaten-path experiences, driving growth in niche tourism sectors such as agrotourism and cultural tourism. Additionally, the growing popularity of wellness tourism is evident, with an emphasis on health and relaxation experiences.

Local special circumstances: Cyprus's unique geographical location at the crossroads of Europe, Asia, and Africa gives it a diverse cultural heritage and a wealth of historical sites, making it a compelling destination for travelers seeking enriching experiences. The island's Mediterranean climate, with long summers and mild winters, also contributes to its appeal as a year-round tourist destination.

Underlying macroeconomic factors: The steady economic growth and stability in Cyprus, coupled with government initiatives to promote tourism, have played a significant role in driving the expansion of the Travel & Tourism market. Infrastructure developments, such as new luxury hotels and improved transportation networks, have enhanced the overall tourism experience, attracting a broader range of visitors to the island. Additionally, strategic marketing efforts to promote Cyprus as a premium travel destination have helped boost international arrivals and tourism revenue.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.