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Energy Costs and Regional Conflicts Impact Cyprus Tourism Sector

Nicosia: Average hotel bookings across Cyprus for July and August are around 85%, noticeably lower than last year, the Director General of the Cyprus Hotel Association (CHA), Christos Angelides, told the Cyprus News Agency (CNA) on Monday. He noted that higher energy costs resulting from regional conflicts are having a visible impact on the hospitality sector.

According to Cyprus News Agency, the President of the Association of Cyprus Travel and Tourism Agents (ACTTA), Charis Papacharalambous, stated that every time hostilities resume in the region, the effect on tourism is "immediately apparent." He estimated that overall, the year will end 12-14% below last year's figures, with 2025 having been a record-breaking year for the island's tourism industry.

Asked about booking trends this summer, Angelides reported an improvement in the pace of bookings. "There is increased demand during long weekends, particularly from last-minute bookings originating from neighbouring countries and the domestic market, which is helping improve the overall picture," he said. However, he added that there is still uncertainty about the autumn season. "We are always hoping the autumn period will recover, and we remain alert and ready to respond appropriately," he said.

Angelides also pointed out that recent developments have pushed energy costs higher, keeping airfares expensive. "These factors continue to be an issue of concern for Cyprus and must remain on our radar," he said. Although arrivals from Cyprus' key tourism markets have improved, he noted that there is still a considerable gap compared with last year. "We remain optimistic. As a private sector and as an industry, we continue our coordinated and organised efforts," he said.

Asked about occupancy levels for July and August, Angelides said that the nationwide average hotel occupancy currently stands at around 85%. "We hope these levels will be maintained and even increase," he said, noting that during last year's record-breaking season, August occupancy reached as high as 97%, whereas this year it remains 10-15% lower.

Referring to prospects for year-round tourism, particularly bookings during autumn, winter, and early spring, Angelides said that "our greatest hope is to continue where we left off last year. Our efforts are focused on improving the five-month period from November 2026 to April 2027. That is what will make the difference." He added that stronger performance in the coming months would help offset the shortfall experienced at the beginning of the season.

For his part, ACTTA President Charis Papacharalambous said that bookings "are down. Not dramatically, but we are behind the corresponding months of last year." "Almost all source markets are down compared with last year, with the exception of Israel, where arrivals in June increased by 170% compared with June 2025," he said, noting that the conflict between Israel and Iran had broken out in June 2025.

He estimated that tourism performance this year will remain slightly below last year's levels, as it depends directly on regional developments. Asked whether the end of the ceasefire between the United States and Iran had affected bookings, he replied that the impact is "visible immediately", even "the very next day", although not to a significant extent. Overall, he estimated that overnight stays across Cyprus for the full year will be around 12-14% lower than in 2025.