Bookings for Cyprus in 2027 through Britain’s three largest tour operators are running 20% to 30% below last year’s levels, raising concerns about the island’s tourism outlook despite signs of stabilisation following a difficult summer.

Evripides Loizides, president of the Paphos Hotels Association, said on Tuesday that Cyprus needed to strengthen its international promotion as growing competition and continued uncertainty influenced holiday decisions.

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Summer Recovery Fails To Offset Earlier Losses

Loizides said the 2026 summer season began strongly before conflict and its wider economic consequences disrupted demand. Hotels subsequently suffered significant losses, with occupancy across the three summer months and September ending approximately 7% below the same period in 2025.

The sector is also facing pressure from the expansion of short-term holiday rentals and accommodation in the occupied area, which Loizides said was eroding the market share of established hotels.

September performed somewhat better than a year earlier, while October also showed encouraging signs. However, the outlook for the coming months remains uncertain.

Britain Remains A Key Market

Tourist activity in Cyprus typically begins to slow after November 10, according to Loizides, with demand declining sharply during the winter season.

The UK remains a particular concern as Cyprus’ largest source market. Economic uncertainty and higher living costs are weighing on British households’ discretionary spending, potentially affecting their holiday plans.

Poland continues to be an important market for Paphos, while arrivals from Israel have also supported tourism this year. However, Loizides noted that demand from Israel remains closely linked to developments and stability in the country.

September Arrivals Rise, But Year-To-Date Figures Remain Lower

Official figures show that Cyprus welcomed 580,889 tourists in September, up 1.8% year on year. British visitors accounted for 184,345 arrivals, or 31.7% of the total, while Israel ranked second with 105,249 visitors, representing 18.1%.

Despite September’s growth, arrivals between January and September reached approximately 3.4 million, down 5.6% from the same period in 2025.

Tourism Deputy Minister Kostas Koumis said on Monday that preparations for 2027 were already under way, with a focus on recovering markets affected by external shocks.

Tourism Promotion Must Start Early

Loizides argued that Cyprus needed to act before the next booking cycle gathers pace. Most reservations are made between January and March, making early promotion in key source markets particularly important.

He called for closer coordination between the Deputy Ministry of Tourism, tourism organisations and airlines, emphasising the state’s role in promoting Cyprus internationally.

The deputy ministry’s 2027 budget allocates €26.9 million to tourism promotion campaigns, slightly below the €27.7 million allocated for 2026.

Rising Costs Add To Industry Pressures

Beyond weaker bookings, hotels are contending with higher operating costs, staff shortages during the summer and uncertainty linked to international developments.

With early bookings from the UK already trailing last year, Cyprus faces the challenge of turning its recent improvement in arrivals into sustained demand for 2027. The response will depend in part on how effectively the island promotes itself in key markets before travellers finalise their holiday plans.