Hospitality sector in Cyprus is driving economic growth

In Cyprus, the hospitality industry is an important driver of the country's economy, creating employment and economic growth. The second-biggest employer in Cyprus in terms of employment in 2021 was the accommodation and food service industry, according to Eurostat, the statistical agency of the European Union.

Cyprus distinguished itself from its European counterparts in terms of economic contribution, accommodation and food service activities accounted for 6% of the added value of the business economy, closely followed by Greece at 6.5 percent. Croatia came in second with a contribution of 5.4%.

Slovakia, the Czech Republic, Poland, and the Netherlands, on the other hand, reported the lowest contribution shares, ranging from 0.8 to 1.2 percent.

In terms of employment, the importance of the hotel industry was much more apparent everywhere. Greece topped the list with 19.6% of jobs in the industry, followed by Cyprus (13.5%) and Spain (9.5%). In the meanwhile, the lowest employment shares in the industry were reported by Finland, Slovakia, and Poland.

Overall, in 2021, the European Union hosted a substantial number of enterprises in the accommodation and food services sector, totaling 1.9 million, which accounted for 6.1 percent of all active enterprises in the economy. These enterprises, falling under section I of the statistical classification of economic activities in the European Community (NACE), were significant employers, collectively employing 9.9 million people.

In terms of financial contribution, the sector generated €203.6 billion in value added and accumulated a net turnover of €446 billion in 2021, highlighting its substantial economic impact.

In the business economy of the European Union, the hospitality industry employed 6.3% of all workers and generated 2.2% of its value added in 2021. This emphasises how significant a role it plays in the European economy.