Economic downturn in northern Cyprus affects tourism and halloumi exports

Hotels in northern Cyprus are reporting a decline in occupancy rates, currently averaging 35 percent, down from an initial forecast of 55 percent. Hotel manager Mehmet Kiral noted that cancellations are originating from both Middle Eastern and European markets, citing the impact of regional conflicts. The tourism sector, which annually injects over 150 million euros into the local economy through supply purchases and tax revenue, expects continued losses through the spring. Simultaneously, the local halloumi industry is struggling with export challenges, specifically regarding markets currently affected by international conflicts. Local industry representatives have also alleged that the Republic of Cyprus is utilizing financial incentives of 25 euros per tourist to divert visitors away from northern territories. The sector continues to face uncertainty as travel demand remains depressed during the upcoming holiday period.