Cyprus chamber of commerce calls for state support as tourism slows

The Cyprus Chamber of Commerce and Industry (Keve) on Wednesday warned that the escalating war crisis in the wider region is already starting to weigh on the Cypriot economy, with tourism among the first sectors to feel the impact.

In a statement, the chamber said Cyprus’ hotel and tourism industry was once again being directly hit by geopolitical developments, with reservation cancellations, a slowdown in new bookings and growing uncertainty in international markets already raising concern over the course of this year’s tourist season.

Tourism, it said, remains one of the most important pillars of the Cypriot economy, supporting thousands of businesses and employees, as well as the broader chain linked to hospitality, services, trade and transport.

As a result, the chamber said, any fallout would not be confined to hotels alone but would affect economic activity more broadly across the country.

Against this, the Keve said it was “imperative” for the state to move immediately and monitor the situation closely.

Should the crisis drag on and its effects deepen, the chamber said targeted support measures for the hotel and wider tourism sector ought to be considered without delay, with the aim of safeguarding business viability and protecting jobs.

At the same time, it added that efforts to promote and support Cyprus’ tourism product in international markets should be stepped up, while all available policy tools should be used to help stabilise the sector during what it described as a particularly critical period.

Finally, the Keve said it would continue to follow developments closely and work with all relevant bodies to ensure that the Cypriot economy, and tourism in particular, receives the support needed to cope with the challenges arising from international developments.