Tourism bookings in Cyprus declined after the escalation of the Iran conflict, with cancellations rising sharply in early March. Data show disruption during the pre-season recovery period. Impact extends across regional markets, including Greece and Turkey. Industry data points to weakening demand ahead of the summer season.
Economic Ripple Effects Across The Region
Data from AirDNA show cancellation rates for short-term rentals in Cyprus rose from about 15% to as high as 100% after the escalation. Rates later stabilized at around 45% by late March. Tourism operators reported a near 40% decline in pre-season bookings. Greece and Turkey also recorded increases in cancellations, though at lower levels.
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Industry Leaders Warn Of A Critical High-Season
Hotel operators say summer demand will determine overall performance for the year. Businesses are focusing on securing bookings during peak months. Central Bank of Cyprus revised its 2026 growth forecast to 2.7% from 3.0%. Revision reflects expectations that the conflict may last about two months. Airlines, including easyJet and Jet2, reported shifts in demand toward western Mediterranean destinations such as Spain. Data indicate that travellers are choosing alternative locations.
Greece Adopts A Wait-And-See Strategy
Tourism data in Greece show a decline in bookings from Israel and Gulf markets. Aegean Airlines reported double-digit decreases in summer demand from these regions. Demand from northern Europe and the United States also softened. Earlier booking activity has partially offset losses, according to industry representatives. The sector continues to monitor booking trends ahead of peak season. Operators are balancing cancellations with efforts to maintain occupancy rates.
