Tourism sector jitters over impact of Israel-Gaza crisis

Cyprus’ tourism sector is jittery as concerns are mounting that the conflict in neighbouring Israel could see its second largest market dwindle.

President Nikos Christodoulides held a meeting on Thursday with key stakeholders, where he was told that arrivals from Israel had hit 300,000 so far this year.

But head of the Association of Tourist Enterprises (Stek) Akis Vavlitis warned that cancellations from Israel are racking up.

He added, however, that some visitors from Israel already on the island are prolonging their stay as the crisis unfolds. That has offset the cancellations so far.

Deputy tourism minister Costas Koumis noted that Israel is a significant tourism market, particularly for “short escape” style holidays.

Vavlitis was also thankful that the crisis occurred towards the end of the tourism season.

Elsewhere, the tourism representative warned of the other challenges facing the sector: labour shortages and high energy bills.

He said that they have pressed for more third country nationals to be allowed in to work in the sector, a move which has been received positively by the president.

As for energy, he highlighted that just one hotel unit paid a €1.5 million energy bill in 2022.

He warned that €450,000 of that bill was due to the carbon tax due to the island’s use of polluting fuels for energy.