Record expectations overturned by regional crisis
The regional geopolitical crisis has reversed the positive outlook with which the tourism sector entered 2026, leading to significant tourism losses in both arrivals and revenue, according to the Director General of the Cyprus Tourism Enterprises Association (STEK), Chrysaimili Psilogeni.
Speaking on Sigma’s Mesimeri Kai Kati programme, Psilogeni said the first two months of the year had been particularly strong, raising expectations that 2026 would outperform 2025, which recorded a historic high in tourism revenue.
Strong beginning before downturn
According to Psilogeni, tourist arrivals increased by 8.5% in January and 9.5% in February compared with the previous year, while tourism revenue rose by approximately €5 million in each month.
“We started the year on a positive note and expected it to be much better than 2025,” she said.
However, conditions changed following the escalation of the geopolitical crisis, which directly affected demand for Cyprus as a tourist destination.
Sharp decline in arrivals and revenue
The latest figures presented by STEK show that arrivals fell by around 30% in March and 27% in April compared with the same period last year.
The impact on revenue was even greater. Psilogeni said tourism losses reached approximately €44 million in March alone, representing a decline of 34% compared with March 2025.
“The numbers speak for themselves. We have suffered a significant blow in terms of this year’s tourism season,” she said.
Concerns over employment
Psilogeni stressed that the effects extend beyond hotels and are being felt throughout the wider economic chain linked to tourism.
According to Labour Department data, recruitment and re-employment figures in 2026 are lower than in 2025, reflecting weaker demand in recent months.
As a result, STEK has raised the issue with the Ministry of Labour, highlighting the need for support measures for the sector.
Call for crisis management mechanism
The STEK Director General said the latest developments once again demonstrated the need for an organised tourism crisis management mechanism.
Beyond the financial impact, she said Cyprus must strengthen its international promotion efforts during periods of uncertainty to protect its image as a safe and reliable destination.
She also highlighted the importance of maintaining and enhancing the island’s air connectivity, warning that competition in the aviation sector is expected to intensify in the coming years.
“We are an island destination that depends entirely on air transport, so connectivity is something we must protect and strengthen,” she said.
Hotels trying to remain competitive
Asked about claims that holidays in Cyprus have become more expensive, Psilogeni said rising living costs are affecting the entire economy.
Hotel operators, she noted, are facing higher costs for energy, wages and raw materials, but are making efforts to keep prices under control and preserve competitiveness.
“We are trying to limit increases so that we remain a competitive destination,” she said.
Rise of last-minute bookings
Psilogeni also noted that traveller behaviour has changed significantly in recent years.
Bookings are increasingly being made at the last minute, making it more difficult for hotels to plan ahead.
“Unlike in the past, occupancy levels are no longer secured from the beginning of the month. Occupancy starts low and direct online bookings now play a major role,” she said.
She added that tourism businesses are investing significant sums in digital marketing and international promotion.
Concluding, Psilogeni stressed that tourism remains one of the most important pillars of the economy and that addressing current challenges will be crucial to maintaining the destination’s competitiveness in the years ahead.
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