Famagusta tourism under pressure from Middle East war fallout

The Famagusta district is coming under economic pressure from the fallout of the Middle East war, with Paralimni-Deryneia mayor Giorgos Nikolettos saying government support measures are a step in the right direction but should extend across the wider tourism industry.

Nikolettos told the Cyprus News Agency (CNA) that he district is going through a particularly difficult period, as developments affecting tourism and hotels were testing the local economy.

He said the package announced by the government showed that the state understood the seriousness of the situation and the need for immediate intervention.

At the same time, he added that further steps could have been taken so that support was applied more broadly across the whole tourism sector.

Nikolettos also said there was an urgent need for clear guidance on how the measures would be implemented, including whether they would apply to businesses already in operation and to units due to open after April 1.

He said the municipality had been on constant alert from the outset, working closely with local hoteliers, Ayia Napa municipality, Pasyxe, Etap Famagusta, airlines, tour agencies, embassies, airports and other relevant stakeholders.

At the same time, he said the municipality was making targeted interventions towards decision-making centres so that the state response would be timely, meaningful and effective.

“In a period where every day of operation entails significant costs and every decision directly affects employment and the viability of businesses, clarity is crucial,” he said.

Nikolettos also called for stronger diplomatic and political efforts to secure a review of travel advisories issued by foreign countries, saying Cyprus needed to more actively project its stability and safety as a reliable European destination.

He added that the country’s image abroad was directly affecting bookings, confidence in the market and the course of this year’s tourist season.

Support, he said, should not be confined to airlines alone. He suggested targeted support and co-advertising programmes with tour operators and travel organisers should also be considered, given their role in driving bookings to Cyprus.

He also called for stronger connectivity with Cyprus’ two airports through an emergency access plan, including enhanced public transport and special tourist routes serving the free Famagusta district.

In addition, Nikolettos said a special fund should be set aside for the targeted international promotion of Cyprus, and especially the free Famagusta district, as a safe, organised and hospitable destination.

As a local authority, he said, the municipality was ready to contribute market data and practical proposals in cooperation with tourism stakeholders.

“What is required today is coordination, speed in decision-making and flexibility, in order to safeguard the operation of businesses, employment and the dynamics of Cypriot tourism in this critical period,” Nikolettos concluded.