Tourism in Cyprus under threat: industry expects decline of up to 15% in 2026

Following a record-breaking 2025, when Cyprus welcomed more than 4.5 million tourists for the first time, the country's tourism industry is facing a sharp downturn. According to the forecast by Haris Papacharalambous, President of the Association of Cyprus Travel Agents (ACTA), the decline in tourist arrivals by the end of 2026 could range between 10% and 15%.

According to him, April turned out to be even weaker than March, when the number of tourists had already decreased by 31% compared to last year. In April, the drop could reach 40%. A more stable situation is expected to return only by autumn — by September and October, the gap with the 2025 figures might narrow to 5–7%.

ACTA attributes the worsening situation to instability in the region and general anxiety among tourists. Factors influencing the market include the Middle East crisis, tensions surrounding Iran, and incidents related to the British base at Akrotiri.

Experts note that travelers are increasingly delaying trip bookings until the last minute. Additional pressure is coming from rising fuel prices and uncertainty in the British market, which remains the main source of tourists for Cyprus. In 2025, visitors from the UK accounted for about 31% of all arrivals.

The drop in demand has already led to a reduction in air travel: flight capacity to Cyprus has decreased by approximately 5%. However, according to industry representatives, passenger traffic is falling even faster, and many flights are operating with low load factors.

Tourism remains one of the key sectors of the Cypriot economy, accounting for about 14% of the country's GDP. The decrease in tourist numbers directly impacts the hospitality business, restaurants, retail, and the service sector, particularly during the summer season.

At the same time, residents of Cyprus continue to actively travel abroad, and no serious decline in outbound tourism is expected for now.