Iran war Dampens Tourism in Cyprus and Greece

The ongoing Iran conflict has begun to impact tourism in Cyprus and Greece, with rising cancellations and a slowdown in new bookings ahead of the crucial summer season. The situation escalated after military strikes in late February and subsequent counterattacks, including a drone strike near a British base in Cyprus, triggering concerns among travellers and leading to a sharp drop in visitor interest.

In Cyprus, cancellations for short-term rentals surged dramatically, at one point reaching nearly 100% in the days following the escalation, before easing to around 45% by late March. The country’s hospitality sector has reported significant declines in bookings for March and April, prompting the central bank to cut its 2026 economic growth forecast. Airlines and travel operators have also noted reduced demand, with tourists shifting preferences to destinations like Spain.

Greece has also seen a slowdown, particularly in pre-bookings, although the impact has been less severe. Major carriers report declining demand from key markets such as Israel and Gulf countries, while tourism officials remain cautiously optimistic. Industry stakeholders warn that if the uncertainty continues into peak summer months, it could pose a serious risk to economies heavily reliant on seasonal tourism.

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