Iran Conflict Triggers Surge in Tourist Cancellations in Cyprus and Slows Bookings in Greece Greek City Times

The escalating conflict between the US, Israel, and Iran is causing a sharp rise in tourist cancellations and a significant slowdown in new bookings across Cyprus, with milder effects also being felt in Greece and Turkey.

The timing could hardly have been worse. The US and Israel launched strikes on Iran on February 28, just as Cyprus’s tourism sector was emerging from its winter lull. Days later, on March 2, Iran-backed forces launched counter-strikes, and a drone hit a British naval base at RAF Akrotiri on the island, sparking immediate fears and a wave of cancellations.

Sharp Rise in Cancellations

Data from AirDNA, which tracks short-term rental bookings, shows daily cancellation rates for Cyprus properties jumped dramatically — from around 15% before the conflict to as high as 100% in the immediate aftermath. Although the rate has since eased, it remained elevated at approximately 45% as of March 21.

Cyprus’ Hoteliers Association reported a near 40% drop in bookings for both March and April compared to the previous year, according to the association’s director-general, Christos Angelides.

“Since March 1, we have had a lot of cancellations coming through,” said Nicholas Aristou, commercial director at Muskita Hotels in Limassol, which operates two luxury properties. He expressed hope that the slowdown would not extend into the critical summer high season.

“We have to protect the high season months to make sure we can turn things around by the time May comes along, otherwise the destination will be in trouble,” Aristou added.

Broader Economic Impact on Cyprus

The tourism slump is already affecting economic forecasts. This week, the Central Bank of Cyprus revised its 2026 GDP growth projection downward to 2.7% from 3.0%, assuming the conflict would last around two months.

Budget airlines such as EasyJet and Jet2 have noted weaker demand for Cyprus and Turkey, with travellers shifting bookings toward safer western Mediterranean destinations like Spain.

In Limassol’s Ayios Andreas quarter, souvenir shop owner Savvas Orphanos described empty streets during what should be a busier period. “Unfortunately, as you can see, our area is empty of tourists,” he told Reuters during a rainy afternoon with few visitors.

Greece Also Feeling the Pressure

Greece, whose economy is heavily dependent on summer tourism, is experiencing a slowdown in pre-bookings, though the impact appears less severe than in Cyprus.

Aegean Airlines, Greece’s largest carrier, reported a double-digit drop in summer bookings from Israel and Gulf states since the conflict began.

George Vernicos, secretary general of Greece’s tourism confederation SETE, said there has been a noticeable restraint in demand from key northern European and US markets. However, he noted that the overall picture remains positive for now, partly due to strong momentum before the war and a rush to book flights ahead of rising oil prices.

“We are in a wait-and-see phase,” Vernicos told Reuters. “There is a restraint, but the year is still running positively because the momentum was quite high before the war began.”

The broader fallout from the Iran conflict — including disrupted oil flows, mass flight cancellations, and rising fuel costs — continues to create uncertainty for tourism-dependent economies across the eastern Mediterranean.

While authorities in both Cyprus and Greece stress that their countries remain safe destinations, the perception of risk in the region is clearly weighing on travellers’ decisions in the short term.