Nicosia, Cyprus. The employers’ union Oev said on Tuesday that Cyprus’ tourism sector continues to operate under weakened demand, attributing recent performance to regional instability.
Oev highlights uncertainty after British base drone incident
Speaking at the union’s annual general conference at the Landmark hotel in Nicosia, Oev president George Pantelides said the tourism industry is “in a difficult and uncertain situation after the drone incident at the British base,” adding that the sector remains exposed to external shocks due to reliance on early bookings and expected regular flights.
Pantelides called for “targeted travel guidelines, strengthened communication strategy, and targeted incentives for airlines” to stabilise demand.
Tourism’s economic role
Tourism accounts for around 14 per cent of Cyprus’ GDP and supports hotels, catering, transport, retail and related services.
Early 2026 indicators below expectations
Industry data and official statements indicate that performance in early 2026 has been weaker than expected across multiple indicators, particularly during the spring period.
According to Hermes Airports, passenger traffic at Paphos and Larnaca airports fell collectively by 15.3 per cent in March to 599,218 passengers compared with the same month last year.
Hotel occupancy and bookings decline
Hoteliers’ association Pasyxe chair Christos Angelides said “Easter occupancy rates languished between 25 per cent and 45 per cent.”
In the Famagusta district, including Ayia Napa and Protaras, bookings at the start of the season were reported to be around 40 per cent lower than the same period in 2025, with occupancy levels up to 50 per cent below last year in some units. Several hotels have delayed reopening due to limited projected demand.
Ayia Napa mayor Christos Zannetou previously said the decline is visible at local level.
What measures do you think would most effectively help stabilise tourism demand in Cyprus?
