The statistics for May and June indicate that the Cypriot tourism industry has returned to a stable trajectory, said Deputy Minister of Tourism Costas Koumis, speaking before the Parliamentary Committee on Trade, which discussed the issue “The impact on the domestic tourism industry as a result of the turbulent situation in the Middle East and support measures for those affected.”

“Under the circumstances and bearing in mind the severe shock suffered by the tourism economy, the losses, as indicated by the May statistics, have been limited to a very large extent,” the Deputy Minister noted.

“The most important thing is that Cypriot tourism has rebounded, that the measures taken appear to have worked and continue to be effective, and that once again our country’s tourism economy is demonstrating resilience,” he said.

Mr. Koumis noted that we certainly cannot speak of a record year for 2026, as “significant losses were recorded in March and April” and added that May limited the decline in tourist arrivals to 4.9% compared to May 2025 and recorded an 8.1% increase compared to 2024.

He also noted that January and February 2026 were the best months in the history of Cypriot tourism and added that this is “an indication that 2026 got off to a very strong start, picking up where 2025 left off—a record year for Cypriot tourism—and demonstrated that planning had been very effective this year as well”.

“2026 is undoubtedly a very unusual year,” as it got off to a “very strong start,” with January and February recording a significant overall increase of 9.1% in arrivals compared to the previous year, and 25.9% and 27.9% compared to 2024 and 2023, respectively, he added.

Specifically, he noted that January saw an 8.5% increase compared to January 2025 and increases of 38.3% and 34.3% compared to 2024 and 2023, respectively. Compared to 2022, the increase stands at 176%.

He added that February recorded a 9.5% increase compared to 2025, a 17.2% increase compared to 2024, and a 23% increase compared to 2023.

Regarding passenger arrivals (not tourist arrivals) for the month of June, Mr. Koumis said that from June 1 through June 22, there was a 4.3% decrease compared to the previous year, but there was a 7.1% increase compared to 2024 and a 12.8% increase compared to 2023.

The Deputy Minister of Tourism said that “Cyprus’s tourism sector paid dearly” for the conflict in the Middle East, suffering the loss of thousands of bookings and a prolonged freeze on new bookings.

He noted that all of this translates into lost revenue for the state and the industry, but it was inevitable, he said, given what happened in our country, culminating in the attack on the British bases on March 1.

He then referred to the “significant cancellations” recorded in March and April 2026, compared to previous years, and to the negative media reports claiming that Cyprus is not a safe destination, which caused unrest.

The attack on the British military bases on March 1 resulted in intense negative publicity, as well as various other events that undoubtedly affected Cypriot tourism, he added.

 Mr. Koumis said that “overnight, a large portion of our country’s flight schedules was lost,” with several airlines canceling their flight schedules indefinitely.

He noted, however, that within two to three days, an agreement was reached during the International Tourism Fair in Berlin “the return of all airlines,” which resumed operations within about a week with reduced flight frequencies.

He also said that as of March 1, the Deputy Ministry of Tourism began handling the issue as a tourism crisis, based on clear and detailed written instructions from the political head of the ministry, and added that this was notmade public because the word “crisis” always comes at a cost in tourism.

He also noted that the Deputy Ministry of Tourism partnered with a public relations firm contracted by the Republic of Cyprus to restore the country’s reputation, focusing primarily on communicating the message that Cyprus was and remains a safe destination.”

The Deputy Minister then referred to a series of actions taken to boost demand under the circumstances.

Speaking at the session, a representative of the Union of Municipalities provided an overview from 2020 through 2026, stating that “we have weathered five crises” and highlighted the need to establish a crisis management mechanism.

These crises are due to external factors, and there should be a plan in place when they occur, he added.  

He also said that the key is to ensure connectivity in the coming months and added that people still feel insecure and are booking vacations at the last minute, while calling for more aggressive marketing.

He also noted that there appears to be significant demand for mid-August and added that beach revenues are down by 35%.

Speaking at the meeting, PASYXE General Director Christos Angelidis said that the association took significant action from the very beginning and ran a model for hotel reservations that showed a 20% decline to date.

Mr. Angelides said that the association had submitted proposals to the Council of Ministers and “we have focused our efforts on boosting employment.”

The General Secretary of PASYXE expressed hope that payments related to the Special Employment Support Plan for the Hotel Sector, while noting that mechanisms need to be established to anticipate or address crises.

Stefanos Koursaris, Secretary General of the General Union of Hotel Owners (POVEK), said that the rest of the tourism sector had not received financial support from the government and called on the government to support small and medium-sized enterprises.

The Secretary General of the Pan-Cyprian Association of Leisure Center Owners (PASIKA) Fanos Leventis expressed the need to create a crisis management mechanism involving all stakeholders, while noting that no decision had been made regarding financial support for leisure centers.

A spokesperson for the Cyprus Tourism Enterprises Association (STEK) said that from the very beginning, STEK, together with PASYXE, had contacted the relevant authorities to convey their concerns and added that tourism has not yet returned to normal.

He noted that there has been a 13.3% decline in the first five months, occupancy rates have fallen by up to 20%, and tourist spending has also decreased.

We have called for a crisis management mechanism that strengthens cooperation between the government and the private sector, he noted, adding that the issue of increasing the budget of the Deputy Ministry for the promotion and advertising of Cypriot tourism must be addressed.

He also noted that hoteliers have not yet been reimbursed by the Special Employment Support Plan for the wages they paid to their employees, and added that there was a delay on the part of thegovernment to apply to the EU for state aid.

A representative of the OEB said that the Federation expressed the need for additional measures to be taken to mitigate the impact and added that the measure to support workers in the sector was very important.

A spokesperson for the Cyprus Chamber of Commerce and Industry (KEVE) said that the federation had expressed concern from the outset and had convened meetings with the relevant authorities in each sector, while calling for support measures.

A spokesperson for the Association of Tourism and Travel Agents emphasized the need for a crisis management mechanism and for Cyprus to have public relations firms in key overseas markets.

A representative of the Union of Cyprus Communities stated that the affected communities reported a 30% decline since April and that they will experience a significant drop in revenue.

Viktor Mantovanis, a member of the Board of Directors of ETAP Larnaca, said that we must learn from this crisis and added that our infrastructure is outdated.

He also noted that small businesses and agrotourism establishments in Larnaca have been affected by the crisis.

Furthermore, in remarks following the session, Committee Chairman Nikos Georgiou said that two different perspectives were presented today at the session regarding the impact of the geopolitical crisis on tourism, adding that “on the one hand, tourism industry bodies reported that the decline in tourist arrivals and bookings is much greater than what is officially reported.”

On the other hand, he continued, the Deputy Ministry of Tourism maintained that the situation has now stabilized and that tourism has returned to a steady course.

Mr. Georgiou said that this divergence of views highlights the lack of coordination, organization, and an effective mechanism for cooperation between the government and tourism stakeholders.

“The country needs joint actions, coordinated efforts, and a permanent crisis management mechanism so that it can respond promptly and effectively to situations that affect one of the most important pillars of our economy,” he added.

He also said that tourism is the country’s main industry and added that the tens of thousands of workers and small and medium-sized enterprises operating in the sector are the cogs that drive thisindustry and “deserve substantial financial support and recognition so that they can continue to contribute with dignity and security.”

Finally, Mr. Georgiou said that the Committee will revisit the issue, “with the aim of strengthening the resilience and sustainability of tourism.”

AKEL MP Andreas Pasiourtides said that they had heard two different approaches, adding that the Deputy Ministry, based on statistics from the Statistical Service, believes the problem is not that significant and the decline is approximately 4%, while “other tourism stakeholders portray the problem as much larger, with a decline of close to 15%–20%, noting that those who came for the Cyprus Presidency or those who may be visiting for 24 or 48 hours should not be included in the arrival figures.”

“The Deputy Ministry must recognize the true scope of the issue in order to resolve it,” he added.

He also noted that AKEL today reiterated the six pillars it presented at the party’s Secretary-General’s press conference regarding support for the tourism sector.

He said that the first pillar is supporting jobs and finding a way for employees who have not completed six months of work as hotel staff to be eligible for unemployment benefits ; the second is support plans for the entire sector, not just hotels; the third is reestablishing the country as a safe destination; the fourth is supporting and strengthening the country’s connectivity; the fifth is the promotion of domestic tourism, and the sixth pillar is strategic planning to address the impact of the war in the Middle East.

He expressed the hope that these priorities would be heeded and added that, to date, “we have not received a response from the Deputy Minister.”

ELAM MP Linos Papagiannis said that ELAM has set out “certain priorities for the Deputy Minister, including the need—which is our long-standing position— to immediately support small and medium-sized enterprises operating in the broader tourism sector, which are in the greatest need and appear to have been hit hardest of all.”

He also noted that “we have raised questions regarding tourist arrivals—specifically, how many of them end up in the occupied areas and what the actual situation is”—and added that this, too, directly affects the sector.

She further stated that ELAM had presented “some recommendations” to the Deputy Minister and expressed her confidence that these recommendations would be accepted.

Eirini Charalambidou, a member of parliament for ALMA-Citizens for Cyprus, said that “the overall handling of the situation by the Deputy Ministry of Tourism during the crisis was not the best.”

She noted that after March 1, the situation began to deteriorate due to booking cancellations that dropped hotel occupancy rates to 10%, and “the Deputy Minister of Tourism, instead of being on a plane to hold face-to-face meetings with travel agents, was standing behind the President (of the Republic), who was making statements.”

 “Tour operators should have been immediately informed about the actual situation in Cyprus, rather than the image created by the footage of warships, which made it seem as though Cyprus were in the the midst of conflict and confrontation,” he added.

He also noted that “when agreements are made—especially those involving Cabinet decisions—they must be honored,” and added that  “the agreements were intended to ensure that hoteliers retain their staff, despite the cancellations, so that we do not have unemployed people.”

Ms. Charalambidou said that the government, through its announcement on June 22 and with the signature of the Deputy Director of the Deputy Ministry, “effectively set aside what had been agreed upon—or, if you will, created much more convoluted procedures.”

He added that he raised this issue with the Committee, and both Hoteliers’ Associations agreed.

“When we make such sensitive agreements, the least we can do is honor them,” he said, adding that “the Deputy Minister tried to evade the issue by referring to the Ministry of Labor, even though it was his own Deputy Ministry that signed the specific letter addressed to the parties directly concerned.”

 Ms. Charalambidou said she intends to bring the issue before the Trade Committee “so that we can have a more thorough discussion on the matter,” as she put it.