Government scrambles to allay tourism concerns

The government is taking targeted steps to protect Cyprus’ tourism sector and counter what it describes as misleading perceptions abroad about the country’s stability.

President Nikos Christodoulides, during a meeting convened at the presidential palace with tourism industry stakeholders as well as the ministers of transport, labour, as well as the deputy minister of tourism, said the gathering had been called to coordinate action between the state and private sector in response to concerns that international coverage had created a distorted picture of the situation on the island.

“I considered it appropriate to hold this meeting to coordinate our actions in order to address the completely false image that some people, especially abroad, are creating,” he said.

The president added that authorities had already begun implementing measures and were working closely with the industry to limit any potential impact on visitor numbers and revenues.

Tourism remains one of the most important pillars of the economy, contributing significantly to national income and employment across multiple sectors including hospitality, transport and services.  

The sector alone accounted for €3.69 billion of revenue last year, amounting to 14 per cent of national GDP.

Christodoulides pointed to the strong performance of the sector in recent years, describing the last two seasons as record-breaking in both arrivals and revenue.

“It was important that the previous year, as well as 2024, were record seasons for tourist arrivals and revenue,” he remarked.

“We are all well aware of the importance of the tourism sector in the country’s GDP and in our economy.”

The aim, he said, was to assess the latest data and agree on both immediate and longer term responses if necessary.

“We will first see the data as it is at the moment, as well as the moves we will make immediately, in the medium term and in the long term should the need arise.”

Following the meeting, government spokesman Konstantinos Letymbiotis said the discussion involved an extensive exchange of views between the state and industry representatives, with participants reviewing the situation and reaffirming their commitment to safeguarding the country’s touristic assets.

Letymbiotis said that recent developments regarding airline schedules had provided a degree of reassurance.

According to the government, most carriers have restored their planned flight programmes to Cyprus, suggesting a gradual return to normal conditions for the season ahead.

“It is a positive fact that we have recently seen the flight schedules of most airlines being restored and this leads to normality,” he said.

“Life does not correspond in any way to the exaggerations that we often see from the international press.”

However, touristic and economic organisations have warned that uncertainty linked to geopolitical developments in the wider region has already begun affecting bookings and reservations.

Private sector representatives say international media coverage has at times hyperbolised the proximity of Cyprus to the conflict zone, leading some potential visitors to assume the island itself is affected.

President of the hotelier’s association, Thanos Michaelides, expressed confidence that tourism could maintain its upward trajectory with coordinated measures.

He stressed that the recent decline in reservations, particularly in March and April due to airport closures in the Middle East, does not necessarily translate to a lost momentum.

Employers and Industrialists Federation (OEV) director-general, Michalis Antoniou, described the current mood within the industry as one of “cautious concern”.

While emphasising that the situation remains manageable, he said the perception abroad “does not correspond to reality”.

According to Antoniou, the misleading impression has already had a measurable effect on bookings for the early months of the year.

Developments in reservations for March have been disappointing, he said, with the slowdown appearing to extend into April as well.

“It reflects a very slow pace of reservations, something that we need to handle quickly and effectively,” he stressed.

Antoniou suggested launching an immediate international campaign promoting Cyprus as a safe destination.

The goal, he said, would be to correct the misconception that Cyprus is located within an active conflict zone and to reassure travellers that daily life on the island continues as normal.

“There is damage being caused without reason or cause by the misconception that Cyprus is in a state of war,” he remarked.

The Cyprus Chamber of Commerce (Keve) also warned that tourism is often one of the first sectors to feel the effects of geopolitical instability.

The organisation expressed concern about cancellations, a slowdown in new bookings and growing uncertainty among international travel markets.

The chamber stressed that tourism supports thousands of businesses and employees across the economy and called for close monitoring of developments by the state.

Should the regional crisis continue for an extended period, it said, targeted support measures for the sector may need to be considered in order to protect jobs and ensure the viability of tourism businesses.

At the same time, labour organisations representing hotel workers have begun gathering data on the situation within the sector.

According to Neofytos Timinis of the hotel employees’ union, some hotel units have already placed workers on partial suspension as a precaution while the outlook for bookings becomes clearer.

Timinis said the union was collecting information on cancellations and reduced reservations expected in the coming months.

He also indicated that issues have arisen in certain establishments related to the employment of workers from third countries, though discussions on how to address the situation are ongoing.

Meanwhile, Michalis Frangou of the leisure centres union (Osika) said the labour movement is taking a cautious approach for now.

While acknowledging the challenges faced by the sector, he suggested that more time is needed before major decisions are taken.

“There is an assessment that a little more time should be given so that the course of the situation becomes clearer,” he said.