Cyprus tourism sector faces challenges due to Middle East instability

Christos Angelidis, General Manager of the Cyprus Hotel Association (PASYXE), stated in recent interviews that the tourism industry is navigating a difficult period due to geopolitical instability in the Middle East. While 2026 began with positive prospects, the regional crisis led to a wave of cancellations and a slowdown in bookings. Currently, hotel occupancy rates are 10-15% lower compared to the same period in 2025, which was considered a record-breaking year for the island.

Angelidis emphasized that arrival numbers can be misleading and advocated for using overnight stays and the average duration of visits as more accurate indicators of the sector's health. He expressed concerns regarding rising operational costs and the potential impact of discounting on service quality. He called for the implementation of a permanent crisis management mechanism to protect the industry.

Looking ahead, stakeholders are focusing on the critical autumn season. While cancellations have normalized and booking trends are showing signs of improvement—particularly from regional markets like Israel—the industry is urged to move away from reactive measures toward proactive business models to ensure long-term stability.