Cyprus tourism faces sharp reversal in 2026 after record breaking year

Tourist arrivals to Cyprus increased significantly in 2025, highlighting a record-breaking year that stands in stark contrast to the sector’s declining fortunes in early 2026.

Specifically, the Cyprus Statistical Service (Cystat) on Monday reported that total traveller arrivals reached 7,102,208 in 2025, marking an increase of 13 per cent when compared with 2024.

At the same time, departures totalled 7,076,521, corresponding to an increase of 12.8 per cent year-on-year.

Air traffic accounted for 96.8 per cent of both arrivals and departures, underlining the dominant role of aviation in Cyprus’ connectivity.

Tourist arrivals rose by 12.2 per cent, reaching 4,534,073 in 2025, compared with 4,040,200 in the previous year.

The United Kingdom remained the largest source market, accounting for 31.8 per cent of total tourist traffic during the year.

Israel followed with a 13.0 per cent share, while Poland accounted for 8.2 per cent and Germany for 6.1 per cent of total arrivals.

What is more, Greece contributed 3.9 per cent of arrivals, with Sweden representing 3.4 per cent of the total.

The vast majority of visitors travelled for holidays, with 79.8 per cent citing leisure as their primary reason for visiting Cyprus.

A further 13.1 per cent visited friends and relatives, while 7.0 per cent travelled for business purposes.

Tourism revenue rose sharply to €3.69 billion in 2025, compared with €3.20 billion in 2024, representing an increase of 15.2 per cent.

The statistical service reported that average expenditure per person reached €815.16, recording a rise of 2.6 per cent compared with the previous year.

Meanwhile, spending peaked in August at €966.41 per person, while the lowest average expenditure was recorded in February at €595.71.

Travel by residents of Cyprus abroad also increased, with trips rising by 11.9 per cent to 1,963,593 in 2025 compared with 1,754,937 in 2024.

Greece was the most popular destination for Cypriot residents, attracting 32.6 per cent of outbound travellers.

The United Kingdom accounted for 8.9 per cent of trips abroad, followed by Italy with 5.5 per cent and Russia with 3.8 per cent.

Germany represented 3.5 per cent of outbound travel, while Poland accounted for 3.3 per cent.

The report also showed that August recorded the highest number of outbound trips, whereas February saw the lowest level of travel activity among residents.

In addition, the statistical service reported that holiday travel dominated outbound trips, with 73.1 per cent of residents travelling for leisure purposes.

Professional reasons accounted for 20.5 per cent of trips, while 5.3 per cent travelled for studies and 1.1 per cent for other purposes.

However, the outlook for the Cypriot tourism sector has grown increasingly precarious throughout the early months of 2026, as the escalating conflict in the Middle East continues to exert a multifaceted downward pressure on global aviation and tourism.

This geopolitical instability has triggered a volatile surge in Brent crude prices, which has inevitably filtered down to the aviation industry through sharply elevated jet fuel costs that force carriers to adjust their pricing structures.

Consequently, these rising ticket prices are colliding with a noticeable shift in traveller sentiment, as heightened security concerns and reduced discretionary spending power cause many to reconsider their itineraries or postpone non-essential trips altogether.

Indeed, tourist arrivals in March 2026 declined by 30.7 per cent year-on-year, reflecting a sharp drop compared with the same period in 2025.

Bookings for the summer season are reportedly down by around 25 per cent, while hotel occupancy rates are currently estimated at between 40 and 50 per cent, significantly lower than the approximately 75 per cent recorded last year.

Concerns are also growing over employment and business sustainability, as lower occupancy rates and reduced revenues place pressure on hotels and related industries.

Last week, trade union Sek’s hotel workers branch expressed “deep concern” over the Middle East conflict’s impact on Cyprus’ tourism sector, warning that regional instability had already caused a visible decline in occupancy and threatened business viability.

Consequently, the union urged the government to implement immediate support measures, specifically calling for the extension of wage subsidy schemes through June to prevent potential layoffs and stabilize the industry.

Tourism, which accounts for around 14 per cent of Cyprus’ GDP, remains a critical pillar of the economy, making the current slowdown a key area of focus for policymakers and industry stakeholders.