Nicosia, Cyprus. Economist Tassos Yiasemides said Cyprus must prioritise safeguarding its image as a stable and safe destination for tourism and investment, while keeping any measures to address rising prices strictly temporary. He said Cyprus is highly susceptible to major geopolitical and economic developments in the broader region.
Exposure to regional developments
Speaking to the Cyprus News Agency (CNA), Yiasemides described Cyprus as an externally driven economy and warned that the war in the Middle East could have multiple implications for the national economy. He said the priority should be to protect the country’s image as stable and safe, for both tourism and investments.
Opportunities and the need for normality
Yiasemides said companies located in business centres near conflict zones may seek alternative locations, creating opportunities for countries perceived as secure. He added that Cyprus must project a sense of normality in the tourism sector and the wider economy during periods of regional instability.
Hotel operations and incentives
He said this should not be achieved by subsidising hotel units to remain closed for another one or two months, but by providing incentives for them to open. He suggested hotels could potentially operate with limited staff initially until booking levels recover.
Ayia Napa mayor calls for winter openings
Ayia Napa mayor Christos Zannetou said on Monday that keeping hotels open during the winter months is vital to maintaining an international image of stability and resilience for the Cypriot tourism industry. He said active winter operations prevent the perception that the island is struggling with regional challenges and help sustain global confidence in the destination.
How do you think Cyprus should balance support for tourism with maintaining an image of normality during regional instability?
