Cyprus tourism is showing signs of stabilisation following significant disruptions caused by Middle East tensions, according to Deputy Minister of Tourism Kostas Koumis. Despite heavy losses in March and April due to cancellations and negative perceptions relating to the March 1 attack on British Sovereign Bases, May data indicated that the decline in tourist arrivals narrowed to 4.9 percent compared to May 2025, while arrivals still increased by 8.1 percent compared to 2024.

Koumis highlighted that January and February 2026 saw historic arrival increases, reflecting strong momentum from the record-breaking 2025 season. However, June preliminary figures showed a slight decrease from 2025 but gains compared to previous years. The Deputy Ministry has treated the situation as a tourism crisis, engaging a public relations firm to rebuild Cyprus’ image as a safe destination.

Parliamentary discussions called for a permanent crisis management framework and improved coordination between government and industry, stressing the need for timely support for workers and small businesses. Stakeholders warned that while indicators show gradual recovery, ongoing challenges like uneven financial aid, reduced hotel occupancy, and weakened local incomes must be addressed to ensure long-term resilience in a sector vital to the Cypriot economy.