President Christodoulides told the Cyprus Hotel Association that tourism losses from the Middle East crisis remain manageable. Backed by 2025's record revenue, the government is expanding air links to India and Kazakhstan, aiming to extend the holiday season through November. 

President's Assessment of the Regional Crisis

President Nikos Christodoulides said on Tuesday that the impact of the Middle East crisis on Cyprus' tourism sector remains manageable, while reaffirming the government's goal of extending the tourist season until at least the end of November. Addressing the 90th Annual General Assembly of the Cyprus Hotel Association (PASYXE), the President said the sector entered 2026 with the momentum of a record-breaking 2025 before being affected by regional developments.

Government Mitigation and Support Schemes

He said losses in airline capacity and holiday packages were "manageable under the circumstances," adding that the government had moved quickly to safeguard Cyprus' air connectivity, maintain scheduled tourism programmes and strengthen the country's image as a safe and reliable destination. He also urged hotel operators to make greater use of the government's support schemes, noting that applications had so far been limited.

Long-Term Growth and New Air Connections

President Christodoulides stressed that the government remains committed to making Cyprus a year-round destination, pointing to the record tourism performance achieved in 2025, when arrivals reached 4.5 million and tourism revenue climbed to €3.7 billion. He also highlighted efforts to expand air links, including planned connectivity with India and the recent launch of direct flights from Kazakhstan, while referring to the National Tourism Strategy 2035 as the roadmap for the sector's long-term development.

Industry Warnings and Booking Shortfalls

Outgoing PASYXE President Thanos Michaelides said Cyprus tourism is at a critical juncture, warning that the Middle East crisis interrupted an exceptionally strong start to the year. He cited PASYXE research showing bookings fell by around 30% in March and April, with weaker demand continuing into May and June.

Call for Strategic Crisis Management

Michaelides called for a comprehensive crisis-management framework for tourism, stronger promotion in European markets, and the creation of a permanent tourism crisis management team bringing together government and industry stakeholders. He also announced the launch of Xenios Analytics, a new digital platform that will collect and analyse hotel industry data to support evidence-based policymaking.

PASYXE Milestone and Industry Honors

Opening the assembly, PASYXE Director General Christos Angelides described the association's 90th anniversary as a milestone for Cyprus' hotel industry, saying it was an opportunity both to reflect on its contribution to the country's economy and to shape the future of Cyprus tourism. The event also honoured Archbishop of Cyprus George for the Church of Cyprus’ longstanding contribution to tourism and the hotel industry, while 15 hotelier families were recognised for their contribution to the development of Cyprus’ hospitality sector.

Source: CNA(ΚΥΠΕ)