Iran conflict chills Cyprus tourism as cancellations surge; Greece sees slowdown
Early-summer tourism to Cyprus has taken a sharp hit following the latest escalation in the Iran conflict, with hoteliers and booking data reporting a wave of cancellations and a slowdown in new reservations. The setback gathered pace after February 28, when the United States and Israel launched attacks on Iran, and intensified on March 2 when a drone struck a British naval base on the island, prompting a new round of cancellations.
Daily cancellation rates for short-term rentals in Cyprus jumped from around 15% before the conflict to as high as 100% in the days immediately after, according to U.S.-based analytics firm AirDNA. While the rate later eased, it still stood at about 45% by March 21.
Greece and Turkey also saw slight increases in cancellations. The Cyprus Hoteliers Association reported nearly a 40% drop in March bookings and a similar reduction expected in April, the association’s director-general, Christos Angelides, said. “Since March 1…
we have had a lot of cancellations coming through,” said Nicholas Aristou, commercial director at Muskita Hotels in Limassol, adding that the focus is now on protecting the high season so the destination can recover by May. The slowdown is feeding into Cyprus’s economic outlook.
The Central Bank of Cyprus this week cut its 2026 growth forecast to 2.7% from 3.0%, based on an assumption that the conflict would last around two months. Budget carriers easyJet and Jet2 said demand for Cyprus and Turkey has waned, with bookings shifting toward western Mediterranean destinations such as Spain.
On the ground in Limassol, souvenir shop owner Savvas Orphanos described empty streets and a quiet shop floor during what is already a slow period. The ripple effects are also being felt in Greece, where the economy relies heavily on summer visitors. Aegean Airlines said it has seen a double-digit drop in summer bookings from Israel and Gulf states to Greece since the start of the Iran conflict.
George Vernicos, secretary general of the Greek tourism confederation SETE, said pre-bookings have slowed, though a rush to buy tickets before higher oil prices push up fares has partly offset the decline. He added that demand from Greece’s largest markets in northern Europe and the United States has softened.
“We are in a wait-and-see phase,” Vernicos said, noting that the year remains positive so far thanks to strong momentum before the hostilities began. For Cyprus and its neighbors, the next few weeks will be crucial. Industry officials say the trajectory of bookings will hinge on the duration of the conflict and traveler confidence heading into the May-to-September high season.