Nicosia, Cyprus. Cyprus may redirect funding from its Thalia 2021-2027 cohesion policy programme to support tourism businesses affected by the conflict in the Gulf and wider instability in the Eastern Mediterranean, the European Commission has confirmed.
The clarification followed a parliamentary question by Cypriot MEP Michalis Hadjipantela, who cited booking cancellations, weaker demand and growing uncertainty in the tourism sector.
Funding flexibility
The Commission said Cyprus could use resources available through Thalia 2021-2027 to support small and medium-sized enterprises, including tourism operators.
It said the Cypriot authorities could reallocate funding through an amendment to the programme and that discussions were already under way with relevant government departments.
Impact on tourism
Hadjipantela said the regional disruption was increasing pressure on hotels and smaller tourism businesses and threatening a sector that remains a main pillar of the Cypriot economy.
He asked the Commission to consider whether existing European funding instruments could be activated and whether greater flexibility could be provided under EU state aid rules for affected companies.
Call for action
Hadjipantela described the Commission’s response as a substantial step, saying it confirmed that European options were available to support the sector.
He called on the government to proceed with the necessary programme amendments so available funds could be directed to tourism businesses affected by the crisis. He said timely intervention was important for protecting employment, the viability of small and medium-sized enterprises and the competitiveness of Cypriot tourism.
