The upward trend that has followed in recent years in the tourism sector has resulted in the plans for the construction of new hotel units to proceed.
According to data from KPMG Cyprus, for 2018 the new hotel units corresponded to 12% of the total value of the new construction permits. In addition, the new hotel units accounted for 20% of the total value of the large projects for the same year. In absolute numbers, this means that for 2018 the value of construction for new hotel units amounted to 250 million euros.
According to the latest data of the Statistical Service, the upward trend in the number of new hotel units continued during the months of January - April 2019 as 10 new permits were issued for the construction of hotel units worth 530 million euros compared to approximately 40 million euros in the corresponding period last year. However, it should be noted that the launch of the value of the new hotel units is due to the granting of the planning permission for the casino in Limassol. With the exception of this license, their value is lower.
In general, the last 10 years the number of hotels with 3 stars and above increased by 7% with an additional 13 new units, mainly in the areas of Paphos and of Famagusta with available rooms increasing by 11% and 16% respectively in the specific areas.
In its report, KPMG estimates that this upward trend will continue with the construction of the casino in Limassol and other five-star hotels that are under construction in the provinces of Limassol and free Famagusta. Indicatively, the construction of the casino in Limassol will add 1000 new beds and is expected to be completed in 2021. Finally, the completion of the construction of the Chrysomare Beach Hotel in the free area of Famagusta will add 640 new rooms, of Sofitel Cyprus in Limassol 490 new beds and Sun City Resort in Famagusta 460 extra beds. At the same time, great mobility in the hotel sector is observed in Nicosia while Larnaca and Paphos are also waiting for the completion of works for some new hotel units that will enrich their product.
Source: Philenews / George Pyrisis