As part of the ReTour Interreg NEXT MED project, the University of Nicosia Research Foundation is examining the resilience, digital readiness, and sustainability needs of tourism small and medium-sized enterprises. The research will inform practical training, tailored support, and pilot activities that help businesses respond to disruption, improve operations, and strengthen long-term competitiveness.
The findings presented here draw on a recent survey of multiple tourism and hospitality businesses in Cyprus, complemented by focus group discussions involving tourism-sector representatives, entrepreneurs, sustainability professionals, and technology specialists. While the results are not intended to represent the entire Cyprus tourism industry, they offer valuable insight into the experiences, priorities, and practical needs of participating SMEs and stakeholders.
The research shows that Cyprus tourism SMEs are adaptable but continue to operate under significant pressure. COVID-19 was identified as the most serious recent disruption, followed by geopolitical uncertainty, rising energy and supply costs, staff shortages, seasonality, and changing customer expectations.
A central finding is that resilience must be designed into the business model. Participating businesses that felt more resilient referred to loyal customers, diversified revenue streams, financial reserves, rapid decision-making, and flexibility in adapting services or markets when circumstances change. The study indicates that businesses relying heavily on a single customer segment, income source, or operating model may be more exposed when disruption occurs.
Staffing remains the most pressing operational challenge. Businesses reported difficulties in recruiting and retaining qualified employees, high turnover, and the effects of seasonal work patterns on service consistency. Rising operating costs were also a major concern, particularly for energy, supplies, and financing. These pressures highlight the need for workforce development, operational planning, and resource-efficiency measures.
Technology is widely viewed as a useful part of the response. Participants identified digital tools, automation, artificial intelligence, booking systems, marketing platforms, and data analysis as opportunities to improve efficiency and decision-making. Potential applications include analysing booking patterns, responding to customer feedback, improving communication, monitoring energy consumption, reducing food waste, and automating routine administrative tasks.
However, the study also shows that technology adoption must be practical and purpose-driven. Lack of time, digital-skills gaps, system complexity, and uncertainty about technology providers were identified as key barriers. SMEs need trusted, sector-aware guidance and hands-on support to select solutions that fit their operational needs. Training should focus on practical use, critical evaluation of AI outputs, data literacy, and the development of reliable digital workflows.
The research also confirms that technology should enhance, rather than replace, the human side of hospitality. Cyprus’s tourism offer remains closely connected to authentic local culture, personal service, traditional food, and meaningful guest interactions. Digital tools can support more effective operations behind the scenes, while the guest experience should retain the warmth and personal connection that visitors value.
Interest in ReTour is encouraging. Businesses see value in relevant training, accessible digital tools, peer learning, and expert support. Overall, the findings highlight a clear path forward: resilient tourism SMEs will be those that combine flexible business models, skilled people, sound financial and operational planning, useful technology, and authentic hospitality.
These findings reflect the experiences of the participating tourism and hospitality businesses and stakeholders. They provide an important foundation for ReTour’s next steps, including practical training, digital innovation pilots, and support tailored to the realities of small and medium-sized tourism enterprises. Businesses and sector stakeholders are encouraged to follow ReTour’s activities and participate in forthcoming opportunities for collaboration and capacity building.
Next Med
