Cyprus tourism sector faces challenges due to conflict-related insecurity

The Cyprus tourism industry is anticipating a difficult season following the outbreak of conflict involving Iran, which has triggered travel warnings from various nations. Charis Papacharalampous, President of the Association of Cyprus Travel and Tourism Agents (ACTTA), noted that an international image of insecurity is negatively impacting demand. While new bookings showed slight improvement after the initial 10-15 days of the conflict, they remain significantly lower than expected for March, April, May, and the summer period. Cancellation rates continue to be an issue, though Akis Vavlitis, President of the Cyprus Hotel Association (STEK), reported a decrease in hotel cancellations as of March 30, 2026. Despite fewer cancellations, the overall flow of new reservations remains very low compared to the previous year. The government has implemented support measures for airlines and hotels, though industry representatives are calling for broader economic aid. Stakeholders are aiming to maintain hotel operations and protect jobs without resorting to drastic price cuts.