Tourism and leisure Tourism in Greece and Cyprus is feeling the effects of the Iran crisis
Greece and Cyprus are feeling the consequences of the war in the Middle East before the start of the vacations. While direct dangers are hardly noticeable in Greece, the uncertainty about rising costs and economic developments is causing many hotels to worry.
30.03.2026, 04:55
SDA
In Cyprus, on the other hand, the proximity to the crisis region is having a greater impact - and the industry is feeling the consequences of the war more intensely. In Athens, industry representatives are observing a noticeable slowdown in reservations.
Many holidaymakers are hesitating and waiting to see how the economic situation develops, say travel agencies and hoteliers. Greece's Tourism Minister Olga Kefalogianni spoke on the radio about the psychological strain caused by the war. At the same time, she referred to the industry's experience in dealing with crises. She sees possible opportunities in a shift in travel flows: in the current situation, tourists could concentrate on destinations that are considered safe - including Greece, which is far away from the actual crisis region.
Cyprus responds with a 200 million aid package
The EU island republic of Cyprus is at the center of developments. The government in Nicosia has launched a package worth 200 million euros to cushion the economic impact of the Middle East crisis. In April, 30 percent of the wages of employees in hotels and accommodation facilities that are then starting the season are to be covered. The background to this is that some businesses are planning to postpone their opening due to a drop in bookings. The government is also planning aid for airlines in order to secure connections to important source markets.
European markets in view
Cypriot Tourism Minister Kostas Koumis emphasizes that the loss of important source markets such as Israel and several Arab states is particularly problematic. The increasing reluctance of European holidaymakers and rising flight prices are also having a negative impact on demand. After the British, tourists from Israel are the second largest group of visitors to Cyprus.
Security incidents are damaging the image
Additional uncertainty was caused at the beginning of March by an Iranian-made drone that hit the British airbase RAF Akrotiri near Limassol, causing minor damage. Observers see such incidents as a burden on the island's image.
Cyprus: EU state closest to the crisis region
Geographically, Cyprus is only 150 to 250 kilometers away from Israel and Lebanon. This makes the island the EU state closest to the crisis region. A proximity that makes the tourism industry particularly sensitive to political developments.
