The Israel-Iran conflict may negatively affect the touristic advantage of Cyprus. “K” sources from the Ministry of Tourism state that they are closely following the developments.
The decrease in revenue at the marinas is dramatic, which will certainly have its effects on the Cypriot economy.
Tourist arrivals in Cyprus last March had an increase of 9.8%, which translates to 202,256 travelers, while for the period January-March 2024, arrivals reached 415,251, marking an increase of 5.4%. However, despite the increased numbers, it is almost certain that Cypriot tourism is entering difficult paths due to the war conflicts occurring in the wider region and the war in Ukraine. In addition, the absence of a real strategic approach, since the one that exists was adopted in 2020 and was without taking into account the current geopolitical developments and new realities, further complicates efforts to increase tourism in the summer season.
“K” sources from the Ministry of Tourism state that they are closely monitoring the developments, since there is increased concern about how the situation will develop. They typically emphasize that if the Israel-Iran confrontation escalates further, it will have a negative sign for the Cypriot tourism industry. At the same time, the Deputy Minister of Tourism, Mr. Costas Koumis, stated to RIK that what is happening in the region and in the world acts as an inhibitor for the further development of the tourism industry internationally, and by extension the Cypriot industry.
However, although the numbers are on the rise, one can say that the resilience of the industry in the previous years until today, is more due to luck than the existence of a strategic plan to face the challenges.
Reduced booking flow
Regarding flights to Cyprus, everyone says that the flow of ticket bookings has decreased in recent days as a result of the developments arising from the Israel-Iran conflict. The positive point is that despite the reduction in flow there were no flight cancellations. “We may be losing 25% of the bookings that used to be made from Israel, however other markets we address, such as Poland, Germany and the United Kingdom, remain in high flight” said CEO Mr. Dinos Kakkouras on behalf of TOP KINISIS. Hermes, which manages airports, is in the same mood. In particular, there have been no flight cancellations, for now, without this being ruled out due to the constantly changing tension in the Eastern Mediterranean. A slight slowdown in the flow of passengers was observed, but without noticeable results.
Optimism from hoteliers
On the other hand, the tourism industry also declares itself ready for the opening of the summer tourist season with hotels operating at full capacity around the end of April. “K” contacted the DG of PASYXE, Mr. Filokypro Rousounidis, who stated that in the last four years the tourism industry has been plagued by many challenges, which depend on geopolitical developments. We certainly do not want to spread panic, but the reality is not favorable to the tourism industry, which is why we are making efforts to find new markets. Let's not forget that Israel was the second largest market. Thoughts are also being made for a greater opening in central Europe. In general, however, PASYXE reports that the tourist year this year started at a leisurely pace and bookings for the summer tourist season – and especially for the peak months of June, July, August and September – are moving at fairly good levels.
Maritime tourism
The cruise sector was also affected by the developments. In recent years we have seen global cruise giants trusting Cyprus and the port of Limassol. Apart from the Cypriots, other nationalities were also expected to come down to the port of Limassol, strengthening the tourism and local economy of the city. Due to developments in the region companies such as Royal Caribbean and Celestya have changed their itineraries to avoid maritime areas where there is a risk of military operations or terrorist attacks. In addition, due to the developments, the maritime tourism sector, specifically yachting, is also negatively affected. According to “K” sources from the Limassol marina, the arrival of the so-called super yachts in the Cypriot marinas has stopped since most of them were coming from the Middle East via Suez and anchored in Cyprus. The decrease in revenue at the marinas is dramatic, which will certainly have its effects on the Cypriot economy.
Plan B needed
Addressing the challenges and the constant change in travel patterns requires a concerted effort by government, the tourism industry and stakeholders.
< p>The implementation of a strategy that focuses on security, promotion, the development of new markets and the qualitative upgrade of our tourist advantage, can contribute the most to reversing the negative trend and strengthening the sustainable development of tourism in Cyprus since the decision-makers to take seriously the new realities that are undergoing geopolitical changes and the changes in the Mediterranean Sea.
Can the Deputy Minister of Tourism constantly state that Cyprus remains a safe destination for tourists and in fact this is also the message that everyone wants to convey to the outside world, but the situation in the region is fluid and dangers lurk, which is why there must be a plan B.
