War in Iran Clouds Summer Tourism in Cyprus and Greece

The ongoing war in Iran is already casting a shadow over the tourism sectors of Cyprus and Greece, two countries geographically close to the conflict. In Cyprus, hotel cancellations for March and April have reached 25-30% in some coastal areas, with the summer tourist season set to begin in less than two weeks. Early signs indicate a slowdown in bookings, an uptick in cancellations of planned holidays, weddings, and organized trips. The situation intensified following an Iranian drone strike on the British military base in Akrotiri and subsequent travel advisories issued by the United States and other nations.

Despite the uncertainty, the Cypriot tourism industry remains hopeful. Hotels are preparing to open on April 1, and the Cyprus Hotels Association expressed confidence that the summer season can be salvaged. The government is actively working to restore the country’s image as a safe destination and to stabilize the sector. President Nikos Christodoulides announced immediate measures to address these challenges, emphasizing that Cyprus remains a safe, stable, and fully operational center for business, innovation, and tourism. Tourism accounts for nearly 14% of Cyprus’s GDP, and after a record year in 2025 for arrivals and revenues, expectations had been strong for 2026 before the onset of the conflict.

In Greece, the tourism outlook is similarly cautious. Reservations for the summer are limited, and rising prices for goods and services, including gasoline exceeding two euros per liter, are affecting tourists’ spending plans. Greek Prime Minister Kyriakos Mitsotakis has sought to reassure potential visitors, stating that the country remains safe despite regional tensions. However, experts warn that even if arrivals are sufficient, tourists may shorten their stays and reduce spending, redirecting travel to more affordable areas in northern Greece. Hoteliers note that contracts with tour operators remain at last year’s rates, limiting profit margins.

Industry analysts in both countries stress that the situation remains fluid and highly dependent on developments in the Middle East. While governments and businesses are taking steps to support tourism, the sector’s performance in the coming months remains uncertain, with consumer confidence and travel patterns sensitive to geopolitical developments.