Famagusta tourism sector on edge over flight cut fears

Tourism stakeholders in Famagusta district are raising serious concerns as fears grow over potential flight cuts to Cyprus driven by surging fuel costs and ongoing geopolitical tensions.

According to a report by Politis, the situation has already begun to affect the region, although cancellations so far remain limited and have not yet caused major disruption.

Industry figures warn that if tensions between Iran, the United States, and Israel persist, airlines may be forced to introduce significant reductions in flight schedules, with potentially severe consequences for the island’s tourism sector.

A representative from the Famagusta hospitality venues association, Petros Assias, told the Cypriot daily that business turnover in Ayia Napa and Protaras is already down compared to the same periods in the previous two years.

He explained that uncertainty is being compounded by the lack of any clear prospect for a permanent ceasefire in the Middle East, which continues to weigh heavily on travel sentiment.

Assias added that if the situation persists, the negative impact on local businesses is expected to intensify significantly.

He further stated that although most venues in the two resorts have reopened, revenues for April and early May have been disappointing, with an average decline of between 30 per cent and 35 per cent compared to last year.

He explained that some businesses are experiencing drops exceeding 35 per cent, while others report smaller declines below 30 per cent, depending on their location.

Assias also said that weekends see some activity from domestic visitors, while during weekdays establishments rely mainly on foreign tourists, primarily from the United Kingdom and Poland, but in relatively low numbers.

“Our concern is not only about the current situation but also about the summer months,” he said.

“If the war in the Middle East continues, our tourism industry will not recover, and at the same time the purchasing power of foreign visitors will weaken,” he added.

“We do not expect to reach pandemic levels, but we will certainly face a difficult tourist season,” he continued.

He also warned that the risk of airlines reducing flights to Cyprus is increasing, both due to rising fuel prices and weakening travel demand.

“It requires less fuel for a flight from Germany to Spain than from Germany to Cyprus,” he said.

“For many European countries, Cyprus is considered a distant destination, and the rise in oil prices will prove damaging for the island,” he added.

At the same time, the outlook in the hotel sector of Famagusta is described as equally disappointing.

Panayiotis Constantinou, president of the local hotelier association, said that hotel occupancy rates for May are expected to range between 45 per cent and 55 per cent, compared with 80 per cent to 90 per cent in May 2025.

He described April as a catastrophic month for tourism, highlighting the sharp deterioration in performance.

He added that bookings for June currently stand at around 45 per cent to 50 per cent of total capacity.

“If the war does not end soon, the situation will not change dramatically,” he said.

He also stressed the strong concern over possible summer flight reductions, warning of broader consequences for the sector.

“In such a case, the scenario will be catastrophic for the entire tourism industry,” he said.

“Some routes have already been reduced, but not yet to an alarming degree,” he added.

Further evidence of the downturn comes from Ayia Napa’s beach operations, where demand has also weakened.

Dimitris Pateras, the municipality’s beaches manager, said that sunbed rentals fell by 35 per cent compared to the same period last year.

He pointed out that the decline is not solely due to the war, but also reflects adverse weather conditions in recent days.

He added that revenues from umbrellas and sunbeds at organised beaches have dropped by between 65 per cent and 70 per cent.

“Forecasts for May are not good, but we hope the situation will improve from June onwards,” he said.

“By the middle of this month we will have a clearer picture of how the summer season will develop, but at this stage we have a problem,” he concluded.

Earlier this week, the Cyprus Statistical Service (Cystat) reported that tourism revenue in Cyprus reached €85.3 million in February 2026, marking a 7 per cent year-on-year increase.

In additon, total revenue for January to February rose to €159.9 million, up 7.4 per cent compared with 2025.

However, average spending per tourist fell by 2.3 per cent to €581.85, signalling shifting visitor behaviour despite overall growth.

The United Kingdom remained the largest market with 19.3 per cent of visitors, followed by Poland and Israel.

Crucially, the figures above precede the escalation of the Middle East conflict, meaning March and April data will better reflect its impact on the sector.