Trade union Sek’s hotel workers branch expressed deep concern over the impact of ongoing instability in the Middle East on Cyprus’ tourism sector, while calling on the government to implement immediate and meaningful support measures.

In a statement released on Thursday, the union warned that uncertainty across the region is directly affecting tourism activity, with consequences already visible in hotel occupancy rates.

The organisation, formally representing employees in hotels, catering and leisure centres, stressed that the situation is “beginning to weigh heavily on the sector at a critical point in the season“.

It explained that “continued geopolitical tension is discouraging travel demand and creating volatility in bookings“, echoing recent reports that Cyprus’ tourism sector remains vulnerable following regional security developments, including drone-related incidents that have unsettled travellers.

“The uncertainty prevailing in the region directly affects the tourism sector, with the consequences already visible in hotel occupancy levels,” the union said.

The union further warned that the situation could place the very survival of businesses in danger in the foreseeable future, particularly if demand remains subdued during the early summer period.

At the same time, concerns are growing over job security, as reduced occupancy and weaker revenues could force employers to reconsider staffing levels.

“The situation may pose an immediate risk to the viability of businesses in the sector in the coming months, while concerns are also raised about safeguarding jobs,” the union said.

The warning comes amid broader signs of strain in the tourism industry, with recent data showing a decline in arrivals in March and a slower-than-expected recovery in demand, as travellers remain cautious due to regional instability.

Against this backdrop, the union urged the government to act without delay. “The government must proceed with immediate and substantial support measures, placing particular emphasis on extending wage subsidy schemes for May and June, where a documented need is observed,” the union stated.

The union argued that targeted labour support during these months would help stabilise the sector and prevent layoffs during a fragile period.

In addition, it called on the competent authorities to move swiftly to secure European funding support.

Specifically, it urged the utilisation of available financial instruments, including mechanisms such as the European support fund, to strengthen the tourism sector and prevent negative developments in the labour market.

“The timely adoption of measures is considered crucial for supporting the sector and protecting workers during a period of heightened geopolitical challenges,” the union said.

Earlier this week, employers federation president George Pantelides stated that “our tourism industry is in a difficult and uncertain situation after the drone incident at the British base”.

He added that the sector remains exposed to external shocks due to reliance on early bookings and expected regular flights.

Pantelides also called for “targeted travel guidelines, strengthened communication strategy, and targeted incentives for airlines” to stabilise demand.

Tourism accounts for around 14 per cent of Cyprus’ GDP and remains a key economic sector supporting hotels, catering, transport, retail and related services.