Cyprus tourism at ‘critical juncture’ — signs point to May also being ‘lost’

The Cyprus Chamber of Commerce and Industry’s (Keve) tourism committee on Thursday warned that Cyprus’ tourism sector is at a critical juncture, calling for immediate state intervention to prevent irreversible losses.

The committee convened to assess the impact of geopolitical developments in the Middle East on Cyprus’ economy and tourism industry, highlighting growing risks for the sector.

Despite a recent temporary ceasefire in the region, it stressed that “there is no room for complacency”, as uncertainty continues to affect market confidence and tourist flows to Cyprus.

The committee warned that “failure to take immediate action could trigger a chain reaction“, leading to reduced activity, loss of income and jobs, and broader social and economic consequences.

It described the current situation as “deeply concerning“, with available data pointing to further deterioration in the coming months.

According to the committee, May is also “expected to be a lost month“, depriving the market of a crucial period for recovery.

It cautioned that “the continuation of current conditions poses a direct threat to the viability of a large number of businesses“, particularly those dependent on tourism.

The committee stressed that “the decline in tourism activity is not temporary or isolated, but instead has a cascading impact across the entire tourism ecosystem and the wider economy”.

It explained that all links in the tourism value chain are being affected, from primary operators to supporting industries.

The impact, the chamber said, is being felt across travel agents, airlines, ferry operators and land transport providers, reflecting the broad scope of disruption.

At the same time, car rental companies, hotels, restaurants and the wider HORECA sector are experiencing significant pressure.

The committee also pointed to challenges in the MICE segment, destination management companies, retail and supporting services, including cleaning, supply, logistics and technical support.

It highlighted that “reduced occupancy rates, rising operating costs and shrinking turnover” are placing businesses under increasing strain.

“This is compounded by intensifying financial pressures and sharply higher insurance premiums, which in some cases have become prohibitively expensive due to elevated perceived risk,” the chamber stated.

The committee said that “findings from scientifically documented studies confirm substantial losses already recorded“, warning of further deterioration with both direct and indirect effects across the sector.

“Against this backdrop, the committee urges the government to make full use of Cyprus’ institutional and political role, particularly in view of the country’s upcoming responsibilities at European level, to strengthen its international image,” Keve said.

The committee proposed that official communications be sent to foreign embassies in Cyprus and international media, conveying “clear and unified messages of safety, stability and normality”.

It also stressed that ensuring the organisation of major international events is of critical importance, warning that cancellations would send negative signals and reinforce perceptions of instability.

In particular, it referred to the planned foreign ministers’ conference in early May, stating that its successful staging would be key to maintaining confidence.

The committee further underlined the need for effective and coordinated management of travel advisories, in order to prevent further damage to Cyprus’ image as a tourist destination.

It also called for a “single, unified communication strategy led by the Deputy Ministry of Tourism, in close coordination with the Foreign Ministry and other stakeholders”.

Such coordination, it said, is “essential to ensure consistent, timely and credible responses to concerns raised by international markets and visitors“.

At the policy level, the committee emphasised the urgency of enhanced communication and consultation between authorities and the tourism industry, so that decisions reflect real market conditions.

It stressed that “direct engagement, information sharing and meaningful coordination are necessary to address the challenges effectively”.

Within this framework, the committee proposed the introduction of targeted financial support measures tailored to the needs of individual sectors, alongside promotional and communication support for airlines.

The aim, it explained, is to “safeguard and strengthen Cyprus’ air connectivity“, which remains critical for the tourism sector.

It also called for “the immediate implementation of the tourism revival action plan, without further delay”.

In addition, the committee suggested that “extending the tourism season should be seriously considered“, as a way to enhance resilience and partially offset losses.

Finally, the committee urged the Deputy Minister of Tourism and relevant ministries to “engage directly and urgently with industry representatives“, in order to ensure targeted and effective support measures.