Cyprus posts robust tourism revenue growth before Middle East fallout

Cyprus’ tourism revenue reached €85.3 million in February 2026, marking a 7 per cent increase year-on-year, according to a report from the Cyprus Statistical Service (Cystat).

The increase compares with €79.7 million recorded in February 2025, reflecting continued momentum at the start of the year.

For the January to February 2026 period, total tourism revenue is estimated at €159.9 million, up from €148.9 million in the same period of 2025, representing a 7.4 per cent rise.

The figures are based on the passenger survey conducted by Cystat, which tracks spending patterns among visitors.

Despite the rise in overall revenue, the average expenditure per tourist declined, pointing to a shift in spending behaviour.

Specifically, average spending per person stood at €581.85 in February 2026, compared with €595.71 in February 2025, recording a 2.3 per cent decrease.

The United Kingdom remained the largest tourist market in February 2026, accounting for 19.3 per cent of total visitors.

In addition, the statistical service reported that British tourists spent an average of €72.72 per day, reflecting relatively moderate daily expenditure levels.

Poland ranked as the second largest market, representing 18.4 per cent of total tourists, with visitors spending an average of €75.02 per day.

Israel was the third largest market, accounting for 12.6 per cent of visitors, with significantly higher daily spending of €157.15 per day.

The February figures provide a snapshot of the sector’s performance before the escalation of geopolitical tensions in the Middle East, which began on February 28, 2026.

As such, the data does not yet reflect the impact of the war in Iran on tourism flows and revenue, with March and April figures expected to offer a clearer picture.

This distinction is critical given the sharp deterioration observed in subsequent months, particularly in tourist arrivals.

Indeed, the statistical service has previously reported that tourist arrivals in March 2026 fell by 30.7 per cent year-on-year, highlighting the immediate effect of the crisis.

The downturn marks a stark contrast to 2025, a record breaking year for Cyprus tourism, when arrivals rose by 12.2 per cent to 4.53 million visitors.

Tourism revenue also surged in 2025, reaching €3.69 billion, an increase of 15.2 per cent compared with 2024, underscoring the sector’s strong recovery prior to recent disruptions.

The current slowdown reflects a combination of rising travel costs, security concerns and weakened consumer confidence, all linked to the broader geopolitical environment.

Higher fuel prices have driven up airline costs, contributing to increased ticket prices and reduced travel demand.

At the same time, hotel occupancy rates have dropped significantly, currently estimated at between 40 and 50 per cent, compared with around 75 per cent last year.

Bookings for the upcoming summer season are also reportedly down by approximately 25 per cent, raising concerns about the sector’s near term outlook.

Trade unions have already warned of the potential consequences, highlighting risks to employment and business sustainability within the tourism industry.

Tourism remains a key pillar of the Cypriot economy, contributing around 14 per cent of GDP, making the recent decline a significant concern for policymakers.

While February’s revenue growth demonstrates resilience at the start of the year, the broader trajectory suggests that the sector is entering a more challenging phase.

The coming months will be crucial in determining the full economic impact of the regional conflict, particularly as new data captures changes in travel behaviour and spending patterns.