Cyprus’s tourism industry has been disrupted by cancellations following the US-led war against Iran and the drone strike on RAF Akrotiri, but sector leaders say it is too early to assess the full damage and expect the summer season can still recover.
The head of the Cyprus Hotels Association (PASYXE), Thanos Michailides, told Phileleftheros the biggest impact has been felt in Limassol and Paphos, where year-round hotels recorded immediate cancellations linked to flight disruptions. Famagusta was less affected, as many hotels there operate seasonally and have not yet opened.
“We had cancellations because flights to and from the Middle East were cancelled when airports closed, and that includes Israel, which was and remains a significant market for us,” Michailides said. “When airports are closed, cancellations follow as a matter of course.”
European flight schedules have continued without disruption, Michailides said, which he described as important for maintaining tourist flows to Cyprus. Cancellations spiked around the time of the Akrotiri incident as travellers grew concerned, he added.
He said it was still too early to draw firm conclusions. “I believe it is far too early to get a clear picture of the impact, because only eight days have passed since it happened. Tourism is sensitive, but it tends to recover relatively quickly,” he said.
The timing — the start of the summer season — leaves room for recovery, he said. “If the situation normalises soon, I believe demand will bounce back, because Cyprus remains a very important destination for Europeans and especially the British, who are our main market. We also believe the Israeli market will recover quickly,” Michailides said, noting that past disruptions involving Israel had been followed by a swift resumption of tourist flows once flights resumed.
He said Catholic Easter — an important period for hotels, falling on the first weekend of April this year — may see some limited impact. “Perhaps there will be some small impact for Easter, but the real test is the rest of the summer season. If the season gets under way normally in April, it can develop at normal levels, especially given that the last two years were quite good,” he said.
Michailides said PASYXE is in contact with the Deputy Ministry of Tourism, exchanging information and views, and is confident all efforts are being made to limit any problems that may arise.
Famagusta: cautious optimism
Hoteliers in the free district of Famagusta describe themselves as cautiously optimistic despite the cancellations, according to Panagiotis Konstantinou, president of PASYXE Famagusta.
Cancellations are averaging 25% to 30% for March across the 17 hotels currently open in the district — 10 in Ayia Napa and seven in Protaras. Some conferences have also been affected. April has seen cancellations too, though Konstantinou described the impact there as manageable. All hotels in the area are expected to open normally by next month, he said.
Most cancellations are coming from the United Kingdom and Central European countries. “The main reason is the coverage the whole issue has received locally and internationally. In that kind of climate, nobody thinks about travelling to a destination where there are safety concerns,” Konstantinou said. Campaigns are being planned with the Deputy Ministry of Tourism to restore visitor confidence, he added.
“We are not losing our optimism. We need to be positive, face things realistically and take action to reverse the negative climate,” he said.
The Famagusta Tourism Development and Promotion Company (ETAP) issued a separate call for calm, warning against what it described as “unjustified dramatisation of the situation in relation to the risks Cyprus may face.” While acknowledging that the government is right to take precautionary security measures, ETAP said the impression should not be created that “Cyprus is a major target for Iran or its allies.”
ETAP called for a realistic assessment of developments and urged against the spread of extreme scenarios and a war atmosphere, saying these cause unnecessary panic and damage the economy ahead of the tourist season. It said it does not expect current cancellations to significantly affect the summer season.
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