Cyprus tourism sector reports significant decline in bookings and revenue

Tourism stakeholders in Cyprus, including leisure center and shopkeeper associations, have requested an urgent meeting with Deputy Tourism Minister Kostas Koumis to address the sector's decline. Data from the Cyprus Hotels Association indicates that summer hotel occupancy is currently at 40-50%, a sharp decrease from the 75% recorded at this time in 2025. Industry leaders attribute this slump primarily to the ongoing conflict in the Middle East, which has caused a significant drop in bookings and revenue, with some businesses reporting a turnover loss exceeding 50%. Hermes Airports reported a 16% decline in passenger traffic for April 2026 compared to the previous year, noting a reduction in flight seat capacity of approximately 5%. While passenger arrivals for the summer are projected to fall by roughly 9%, the airport operator highlighted stable connectivity with 54 airlines serving 165 destinations. Hoteliers warned that the situation is becoming increasingly difficult to reverse as they face competition from other Mediterranean destinations and rising fuel costs affecting airline schedules. The industry is calling for government intervention and the extension of subsidy schemes to protect businesses and jobs through the summer season.