The President of the Cyprus Tourism Enterprises Association (CTEA), Akis Vavlitis, expressed cautious optimism about the improvement prospects for Cyprus tourism after the US and UK downgraded Cyprus to the lowest level (Level 1) in their travel advisories. He noted that it will take two to three weeks to fully assess how positively this change will affect tourism bookings.

Vavlitis emphasized the need to diversify the island's tourism markets beyond the UK, Cyprus's largest market, citing lessons from past reliance on the Russian market before recent geopolitical conflicts. He also highlighted challenges faced by the industry, including increased costs related to energy, supply chains, and wage hikes agreed under collective labor agreements. Despite these pressures, the hospitality sector has absorbed wage increases without requesting deferrals.

Additionally, Vavlitis confirmed that CTEA has secured strong support from major commercial banks for businesses that have maintained good financial standing. While some decline in tourist arrivals has been caused by global uncertainties and regional conflicts, bookings have recently improved, although the final impact on revenues and economic outcomes remains uncertain.