Finance Minister Makis Keravnos has made it clear that the government will not announce a new package of measures to support professional groups beyond those approved last week by the Council of Ministers.

The Minister expressed this position during a meeting with members of the Executive Committee of OEB, where the impact of the prolonged war in Iran on the Cypriot economy was assessed.

“The ink has not yet dried on the support measures for the hotel industry and livestock farmers,” Keravnos reportedly said, urging restraint until “we see where this war is heading.”

He emphasized that “we must all act prudently during this period and bear in mind that the strong economic and fiscal indicators are what allow the government to support vulnerable groups and professional sectors affected by the geopolitical crisis.”

Most members of OEB’s Executive Committee stressed to the Minister and the government that the hotel industry requires greater state support.

They argued that meaningful support for the hotel sector would simultaneously benefit hundreds of related businesses that depend on tourism.

At this point, the Minister announced the government’s intention to develop an incentive scheme to boost domestic tourism in hotels, particularly during the Easter holiday period.

He noted that this would offer at least some relief to hoteliers, expressing hope that the war will end as soon as possible.

This issue was also discussed during the recent Cabinet meeting.

George Pantelides, President of OEB, acknowledged both during and after the meeting that the negative effects “may be greater than we initially anticipated and greater than what is currently visible.”

Both the Minister and OEB agree that the situation in the economy and the wider region remains fluid, and that the full extent of the impact will depend on the intensity and duration of the conflict.

Makis Keravnos also referred to guidance from the European Commission outlining how member states should structure their economic support measures.

According to the Minister, this guidance makes it clear that measures must target vulnerable groups, be short-term and temporary, avoid putting pressure on public finances, and should not create additional consumption demand.

The PASYXE Board of Directors met at the Alasia Hotel in Limassol to assess the state of the tourism sector and review data on cancellations and bookings.

There was a shared conclusion that the hotel industry suffered severe losses in March, with April expected to follow a similar trend. On one hand, EU Presidency conferences were canceled, and on the other, Easter bookings from Catholic travelers were also withdrawn.

For May, based on current data, cancellations have decreased, but bookings still fall significantly short compared to the same month in 2024 and 2025.

There was a strong consensus among PASYXE board members that the financial support approved by the Council of Ministers is not sufficient to sustain hotel operations.

They raised concerns about hotels that had resumed operations in March, only for the war to begin days later, leading to widespread booking cancellations.

These hotels had already called their staff back to work, further increasing their financial burden.

A senior government source stated that the EU Presidency meetings that were canceled in March are expected to be rescheduled, either in April or May.