Nicosia, Cyprus. An economist said it is too early to assess the economic impact on Cyprus from the ongoing conflict in the Middle East, while warning that risks such as inflation are likely. University of Cyprus professor Marios Zachariades said the proximity of the conflict could raise concerns among tourists and investors.
Tourism and investment concerns
Zachariades told the Cyprus News Agency that if the armed conflict drags on, it could alarm tourists and investors, adding that “Cyprus is not far from Teheran.” He said any fallout on tourism would depend on how long the war continues, which he said no one can predict.
Uncertainty linked to strikes on British bases
The professor said strikes on the British bases on Cyprus also cause concern, and that Iran’s far-reaching retaliation across the region increases uncertainty. He added that international media coverage of the strikes could have adverse effects, at least on hotel bookings in the short term.
Potential for recovery if conflict ends soon
Zachariades said bookings could bounce back if the conflict ends soon. He said Cyprus offers relative safety compared with other countries in the region, but for people from outside the region considering a vacation or investing in Cyprus, the situation creates a “cloud” that would clear only if the war ends in the next few weeks.
Oil prices and recession risk
He said the events in the Middle East highlight how volatile the region is, and added that rising oil prices increase the likelihood of a recession.
How do you think prolonged regional instability could affect your travel or investment decisions related to Cyprus?
