Bookings drop sharply after regional tensions
The ongoing conflict in Iran has triggered a surge in cancellations and a slowdown in new bookings for Cyprus, with smaller effects felt in other countries reliant on summer tourism.
Following US and Israeli attacks on Iran on 28 February, Cyprus’s tourism sector, recovering from the winter season, faced disruptions. On 2 March, Iran launched a series of counterattacks, including a drone strike on a British naval base on the island, which prompted a wave of cancellations.
Short-term rentals hit hardest
Short-term rental cancellations in Cyprus spiked from around 15% before the conflict to 100% in the days immediately after, according to AirDNA data. Although the rate has since fallen, it remained approximately 45% as of 21 March. Greece and Turkey also saw slight increases in cancellations.
The Cyprus Hotel Association reported a 40% drop in bookings for March, with a similar decline expected in April, according to its director-general, Christos Angelides.
Hotels hope for recovery in summer months
“Since 1 March, we have seen many cancellations,” said Nikolas Aristou, commercial director of Muskita Hotels in Limassol, which operates two luxury properties. He hopes the slowdown will not continue into the peak summer season.
“We need to protect the peak months to ensure recovery by May, otherwise the destination will face problems,” he added.
Economic outlook affected
The conflict is also impacting Cyprus’s growth expectations. The Central Bank of Cyprus recently lowered its 2026 growth forecast to 2.7% from 3.0%, assuming the conflict lasts about two months.
Low-cost carriers such as EasyJet and Jet2 report declining demand for Cyprus and Turkey, with bookings shifting to Western Mediterranean destinations like Spain.
Local businesses feel the strain. Savvas Orfanos, a souvenir shop owner in central Limassol, told Reuters his shop remained empty, with heavy rain further reducing foot traffic.
Greece also sees reduced pre-bookings
In Greece, where the economy relies heavily on summer visitors, effects are also noticeable. Aegean Airlines reported double-digit drops in summer bookings from Israel and Gulf countries since the start of the conflict.
George Vernikos, secretary-general of the Greek Tourism Confederation (SETE), noted a slowdown in pre-bookings, partially offset by early flight reservations due to rising fuel costs. Demand from Northern Europe and the US has also decreased.
“We are in a waiting phase,” Vernikos told Reuters. “There is a constraint, but the year is still progressing positively, largely due to strong momentum before the start of the war.”
Also read: Air ticket prices surge amid war disruption
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