A difficult summer season is expected for Cyprus’ hotel industry, as uncertainty caused by the geopolitical turmoil in the Middle East is dampening people’s appetite for travel and holidays. At the same time, concerns are growing over workers who could remain unemployed throughout the summer season, as well as the risk of wider instability in the sector.
Despite the gloomy outlook, no hotel owners have so far requested financial support or repayment relief from banks.
Speaking during the presentation of a Bank of Cyprus’ first-quarter financial results for 2026, CEO Panicos Nicolaou said the picture emerging in the tourism sector is far from encouraging, with business owners worried about revenues and profitability.
Nicolaou said the situation is considered temporary and noted that the industry still has liquidity cushions from the previous two years, which were record-breaking years for tourism in Cyprus.
At the same time, hotel owners say the challenging tourism season ahead is unlikely to lead to lower hotel prices this summer. According to industry figures, cutting prices would risk damaging service quality and the country’s image.
