Cyprus tourism sector faces challenges despite slight June revenue gain

Cyprus reported a minor 0.2 per cent increase in tourism revenue for June 2026, reaching €423.1 million, despite a 1.7 per cent drop in visitor arrivals to 489,965. The rise in revenue was attributed to a 2 per cent increase in average expenditure per tourist to €863.62, offsetting the decline in arrivals. However, the first half of 2026 overall showed a significant downturn, with an 11.4 per cent decline in revenue compared to the same period in 2025. Eurostat data indicates that Cyprus recorded the largest drop in the European Union in overnight stays during the first half of 2026, falling by 7.7 per cent.

The hotel industry experienced a difficult spring, suffering 30 per cent losses during March, April, and May. Christos Angelides, director-general of the Cyprus Hotel Association (Pasyxe), stated that efforts by the private sector and tourism authorities helped stabilize the situation in June, with July and August performing at satisfactory levels. While the sector aims to limit total annual losses to 10 per cent compared to the record-breaking 2025 season, officials remain hopeful that current booking trends for September and October will maintain this recovery.