Nicosia, Cyprus. Cyprus’ tourism sector remains under pressure from the fallout of the Middle East crisis, although conditions have improved since June, according to new hoteliers association Pasyxe president Yiannos Pantazis. He said the sector was hit in March and April by increased cancellations and slower new bookings, but demand has since started to recover.
Season performance
In an interview with Politis Radio, Pantazis said he was cautiously optimistic about the rest of the season, even though new reservations remain below last year’s levels. He said there is still room to improve the season’s performance, particularly through last-minute bookings, which are more active this year than in previous seasons.
Pantazis said hoteliers can use commercial tools such as special offers, incentives for travel agents and targeted promotions to stimulate demand. He said it is still possible to improve the final outcome.
Flights and hotel operations
Pantazis said a key factor was that flight schedules were largely maintained, allowing Cyprus to protect its image as a safe and reliable destination. He added that most hotels chose to remain open despite weaker demand and higher operating costs, a decision he described as important for the country’s credibility in international markets.
Regional differences
Pantazis said the pressure is not being felt evenly across Cyprus. Protaras appears to be facing the greatest difficulty, while Ayia Napa is performing better. He added that Larnaca has also recorded declines, with Paphos affected to a lesser extent.
External pressures
Pantazis said Cyprus is not operating in isolation, as higher airfares and pressure on household incomes abroad are affecting travel decisions across several markets. He said this has made competition for holidaymakers more intense.
Long-term strategy
Looking beyond the current season, Pantazis said Cyprus must continue working towards becoming a year-round, or at least ten-month, destination. He said tourism contributes around 14 per cent of GDP, while its wider economic impact brings its contribution closer to 18 to 19 per cent.
He said achieving that goal will require closer cooperation between the state and private sector, along with more investment in tourism development. Pantazis added that Cyprus does not need to abandon its existing market strategy, but should make targeted adjustments where necessary.
Key markets and crisis coordination
Pantazis said the British market remains the most important for Cyprus, while Israel has become the island’s second-largest source market. He added that Poland continues to grow strongly, while Germany and Romania are among the markets that should be further strengthened.
He also said the recent disruption showed the need for clearer crisis management mechanisms. Pantazis praised the Deputy Ministry of Tourism for the steps it took during the latest crisis, but said coordination can still improve, particularly through more structured cooperation between the public and private sectors.