Cyprus tourism faces 20 percent decline due to Middle East instability

Cyprus has recorded a 20 percent loss in the tourism sector so far in 2026, primarily attributed to ongoing conflicts in the Middle East, including the war involving Iran. Official data for March 2026 showed tourism revenue fell to 85.6 million euros, a 33.8 percent decrease from the 129.4 million euros recorded in March 2025. Total tourist arrivals in March dropped to 139,198 from 200,736 the previous year, with a significant reduction in visitors from the key Israeli market, which fell from 28,353 to 1,537. Christos Angelides, head of the Cyprus Hotel Managers Association (PASYDIXE), noted that hotels have suffered losses throughout March, April, and May, adding that industry representatives have requested financial support from the European Union. While Thanos Michaelides of the Cyprus Hoteliers Association (PASYXE) noted a slight improvement in booking flows compared to March, he confirmed that overall figures remain lower than expected for the season. Both officials expressed cautious optimism that last-minute bookings could aid a partial recovery. Movement during the Kataklysmos holiday weekend was described as temporary and insufficient to offset the year-to-date decline.