Tourism in Cyprus has slumped amid security concerns linked to the war in Iran, raising fears for one of the island’s most important economic sectors, Bloomberg reported.
Visitor arrivals fell 30% in March and 28% in April from a year earlier, while package holiday bookings dropped sharply as several European governments updated travel advisories warning about risks in the eastern Mediterranean. Hoteliers reported cancellations from key European markets.
“We are losing money,” Marios Ellinas, managing director of Lordos Hotels Holdings, told Bloomberg. He said rising operating costs and intense competition left hotels unable to offset losses through discounts.
The decline followed a March 1 drone attack near the British sovereign base at Akrotiri, during a crucial booking period for the summer season. Hermes Airports, which manages Cyprus’ international airports, said arrivals fell 16% in April and forecast passenger traffic for April through October to decline nearly 10%.
Tourism accounted for 14% of Cyprus’ economic output in 2025, when visitor arrivals reached a record 4.5 million. Despite the downturn, the IMF forecasts the economy will grow about 3% in 2026, supported by shipping and technology services.
