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Cyprus Tourism Endures Setbacks Amid Security Concerns And Evolving Travel Trends

Flight Operations Return To Normal

Flight schedules at Paphos International Airport, particularly arrivals from Israel, have returned to normal following recent disruptions linked to regional tensions. Although air traffic has stabilised, the tourism and hospitality sector in the Paphos district continues facing the effects of the recent instability in the Middle East.

Hospitality Sector Under Pressure

Recent hostilities in the region, alongside a drone incident near the British bases in Akrotiri, have significantly affected hotel reservations, according to Thanos Michaelides, President of the Pasyxe Hotel Association.

Michaelides said the overall situation has improved, but ongoing travel advisories, particularly those issued by the UK Foreign Office, continue influencing visitor sentiment. As a result, travel insurance costs for British tourists have increased, with insurers classifying Cyprus as a higher-risk destination.

Recovery Strategies And Economic Implications

Tourism sector representatives are now focusing on restoring booking momentum ahead of the summer season. Christos Angelides said recovery efforts will require a broader strategy involving online campaigns, cooperation with airlines and engagement with travel agents and influencers. Despite signs of improvement in bookings, visitor arrivals in April declined by 27.6% year-on-year, highlighting the scale of the recent downturn.

While the UK remains Cyprus’ largest tourism market, hotel occupancy rates have fallen from historical levels of 80–85% to between 40% and 60% this season. Industry officials nevertheless expressed cautious optimism, pointing to Cyprus’ long-standing appeal as a tourism destination despite ongoing regional uncertainty.

Eurobank Wins Two Euromoney Awards Following Cyprus Merger

Eurobank has been named Cyprus’ Best Bank for 2026 by Euromoney, while also receiving the award for Best Bank for Large Corporates at the publication’s latest Awards for Excellence.

Merger Marks A Milestone

The awards recognise the bank’s performance during 2025, a year marked by the completion of the legal merger between Hellenic Bank and Eurobank Cyprus. The transaction created Eurobank Limited, which the group says is now Cyprus’ largest banking and insurance organisation, with assets exceeding €28 billion.

Euromoney’s Awards for Excellence evaluate banks’ performance over the previous calendar year, with this edition covering January 1 to December 31, 2025.

Lending, Customers And Digital Growth

Eurobank said its business lending portfolio expanded by around 17 per cent during 2025, while its customer base grew to more than 710,000 retail clients and 11,500 business customers.

The bank also continued its digital expansion, saying more than 96 per cent of transactions are now completed through digital channels, and most financing applications are submitted via its mobile app.

Expanding International Presence

Eurobank also highlighted the opening of its first representative office in India, describing the move as a step toward strengthening business links between Cyprus and India while supporting Cyprus’ role as a gateway to the European Union for Indian businesses and investors.

According to the bank, Euromoney recognised not only the successful completion of the merger but also its lending growth, digital transformation and contribution to Cyprus’ position as an international business and investment hub.

CEO On The Awards

“The Euromoney awards confirm Eurobank’s strong momentum and the successful implementation of our group’s strategy in Cyprus,” Chief Executive Michalis Louis said.

He said the merger strengthened the bank’s ability to support households, businesses and the wider economy, while highlighting continued investment in digital services and the opening of the representative office in India as key milestones during the year.

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