Summer bookings for Cyprus are running at very low levels and travel packages are already being cancelled, the president of the Association of Cyprus Travel and Tourist Agents (ACTTA) has warned, saying the island faces a serious tourism problem if conditions do not change.
Haris Papacharalambous told Phileleftheros that while there has been some improvement since the first weeks of the Middle East conflict, the recovery is slow. “There are increased cancellations. Demand does not appear to be recovering to the degree it should,” he said.
Cancellations were coming from all markets rather than specific countries, he said, with flight schedules also being revised.
March and April are key months for gauging summer performance, he said, but the improvement seen recently was not enough to contain the problem. “If demand does not increase we will have a problem,” he said, adding that the first impacts on tourism were already visible.
Travel agencies handling inbound tourism were already facing a problem, Papacharalambous said. He criticised the government’s tourism support measures, noting that while agencies were among those affected, no financial assistance for them had been decided.
If conditions did not improve, agencies would either hold back on hiring or be forced to let staff go, he said.
“There is an improvement, but as long as it proceeds slowly and the war continues and confidence and safety cannot be restored, the conclusion is that this year will be a difficult one,” he said.
Cypriot outbound travel unaffected
Outbound travel by Cypriots has so far not been affected, Papacharalambous said. Package prices had not risen significantly, and some had not been affected at all as they were booked before the conflict began.
Cypriots might avoid destinations routed through conflict-affected hubs, he said, but no significant cancellations among Cypriot travellers had emerged.
Fuel costs and airline ticket prices
Airline ticket prices are driven by multiple factors beyond fuel costs, Papacharalambous explained. Despite rising fuel prices, some carriers might offer cheaper fares to maintain load factors in a low-demand environment. Prices are ultimately set by real-time algorithms weighing fuel costs against supply and demand, he said.
There is particular concern internationally and in Europe over jet fuel supplies. Around 30% of the kerosene used by European airlines passes through the Strait of Hormuz, and the disruption caused by the Middle East conflict is already constraining supply. Officials in some countries have recommended limiting air travel as a result.
Jet fuel prices have in some cases doubled, according to the international press, with industry CEOs estimating that ticket prices may need to rise by as much as 20% to cover the increased costs.
Before last month’s outbreak of hostilities between the US, Israel and Iran, the aviation industry had projected record profits of $41 billion for 2026. The doubling of fuel costs has now called those forecasts into question, with airlines reassessing both their routes and their overall strategy.