Before the start of the holidays, Greece and Cyprus are feeling the consequences of the war in the Middle East.
Mar 30, 2026, 7:23 amMar 30, 2026, 7:23 am
While direct dangers are hardly noticeable in Greece, the uncertainty about rising costs and economic developments is causing worry lines for many hotels.
A beach on Crete. (symbol image)Image: www.imago-images.de
In Cyprus, on the other hand, the proximity to the crisis region has a greater impact – and the industry feels the consequences of the war more intensely. In Athens, industry representatives are observing a noticeable slowdown in reservations.
Many holidaymakers are hesitant 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 stress 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 from the actual crisis region.
Cyprus responds with a 200 million aid package
The EU island republic of Cyprus is more in the focus of developments. The government in Nicosia launched a package worth 200 million euros to cushion the economic consequences of the Middle East crisis. In April, 30 percent of the wages of employees in hotels and accommodation will be paid, which will then start the season. The background is that some businesses are planning to postpone their opening due to declining bookings. In addition, the government is planning help for airlines in order to secure connections to important markets of origin.
European markets in view
The 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 also weighed on demand. After the British, tourists from Israel are one of the second largest groups of visitors to Cyprus.
Security incidents affect the image
At the beginning of March, an Iranian-made drone caused additional uncertainty when it hit the British air base RAF Akrotiri near Limassol and caused minor damage. Observers see such incidents as damaging the island’s image.
Cyprus: EU state closest to the crisis region
Geographically, Cyprus is only 150 to 250 kilometers 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. (sda/dpa)