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Cyprus Tourism Feels Impact Of Decline In Israeli Visitors

Declining Arrivals And Revenue Implications

Recent data show that the absence of Israeli tourists over the past two months has affected Cyprus’ tourism sector, particularly given the market’s high daily spending levels. Tourist arrivals reached 455,680 in May 2026, compared with 479,160 in May 2025, representing a decline of 4.9%. During the January-May period, arrivals were down 13.3% compared with the same period a year earlier.

Foreign Market Contributions: United Kingdom And Beyond

The United Kingdom remained Cyprus’ largest source market in May 2026, accounting for 36.3% of total arrivals, or 165,600 visitors. Israel followed with 53,649 arrivals, representing 11.8% of the total. Other key markets included Poland with 37,307 arrivals (8.2%), Germany with 28,546 arrivals (6.3%), and Sweden with 22,111 arrivals (4.9%). Despite a decline in arrivals from some markets, these countries continue to account for a significant share of Cyprus’ tourism traffic.

Rebound In Israeli Tourism

Arrivals from Israel recovered during May 2026 following the sharp decline recorded in March. Visitor numbers rose from 1,537 in March to 15,997 in April before reaching 53,649 in May. Compared with May 2025, arrivals from Israel increased by 18.6%. The recovery follows the near-zero inflow recorded in March after an incident involving a drone near British military bases.

Government Response And Strategic Management

Deputy Minister of Tourism Kostas Koumis said the ministry remains focused on supporting the sector’s recovery following one of the most difficult periods in recent decades outside the pandemic. According to Koumis, efforts to promote Cyprus as a safe destination helped limit the impact of geopolitical tensions and disruptions affecting air connectivity.

Investing In A Resilient Future

Over the past three months, authorities and industry stakeholders have focused on supporting Cyprus’ presence in international tourism markets. Actions have included digital marketing campaigns in 27 countries, visits by foreign journalists and influencers, international meetings and presentations, and cooperation with long-standing tourism partners.

Cyprus Employment Rises 1.7% To 525,167 In Q2 2026

Cyprus employment increased 1.7% year over year to an estimated 525,167 people in the second quarter of 2026, according to the state statistical service, Cystat. Employees accounted for 472,254 of the total, while 52,913 were self-employed. The increase points to continued labor market growth across both wage employment and independent work.

Trade, Construction And Leisure Lead Employment Growth

Wholesale and retail trade, including motor vehicle and motorcycle repair, recorded some of the strongest employment gains, alongside construction and arts, entertainment and recreation.

Those sectors are closely linked to domestic economic activity, with trade reflecting consumer demand and construction reflecting investment. Employment growth in leisure-related industries also points to continued activity in consumer-facing services.

Hours Worked Rise Faster Than Employment

Labor input increased faster than headcount. Cystat estimated that employees and other workers put in 246.57 million hours during the second quarter, up 2.2% from a year earlier.

The increase suggests that businesses were not only employing more people but also recording higher total hours worked. Wholesale and retail trade, construction, and arts, entertainment and recreation again recorded the strongest gains.

Labor Market Expansion Remains Broad-Based

The combination of higher employment and hours worked points to continued expansion in Cyprus’ labor market during the second quarter. The pace remains moderate, but gains across several major sectors indicate that labor demand continued to support economic activity.

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