Why Cyprus is the steal of the summer: Tourism has been decimated by the Middle East crisis – but this is what’s really happening on the island… and why it’s the perfect time to grab a bargain for your holiday

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As children wash down their midnight ice cream, karaoke sounds from the speakers of the Rockafellas bar on Protaras’ main street. Outside the Fools and Horses Pub, a few minutes away, punters tuck into kebabs with cold beers while football matches play on television screens.

Little appears to have changed on the surface of the sun-soaked island. But far from the neon lights and packed restaurant terraces, tourism experts say the country is experiencing one of the toughest starts to the season in recent memory.

Cyprus, an island in the Eastern Mediterranean located south of Türkiye and west of Syria and Lebanon, found itself in international headlines following a drone incident at RAF Akrotiri on March 1, which resulted in only minor damage and no casualties.

Although Cypriots remained positive, the noise surrounding the incident and the wider conflict in the Middle East caused anxiety among travellers, leading to cancellations and reduced bookings.

Total visitor numbers fell by more than a third in March 2026, according to tourism arrivals data from Cystat, while British visitors were down by nearly a quarter on the previous year.

The impact on tourism was clear for many businesses that rely on visitors.

Paschalis Assias, 44, co-owner of Fools and Horses Pub in Protaras, told the Daily Mail: ‘Some businesses have taken a bigger financial hit than others; between 20 and 40 percent.

He said there was a slight increase last month, but there is still a lot of uncertainty about the upcoming season.

‘There definitely aren’t as many people as last year,’ he explained.

While many in the hospitality industry reported a slowdown in bookings and an increase in cancellations in the weeks following the incident, some noted that March and April were significantly quieter than in previous years.

The sunny island of Cyprus is experiencing one of the toughest starts to the season in recent times, tourism experts say

Cyprus made international headlines following the drone incident at RAF Akrotiri on 1 March

The British Foreign, Commonwealth and Development Office (FCDO) has never advised against travel to Cyprus. But some, including Mr Assias, believe the media and social media have played a role in the decline in tourism in recent months. There was also mention of the drone attack on the UK government website, but this site was recently removed.

According to experienced tourist guide Panicos Neophytou (panicosneo on Instagram), the biggest challenge was not events on the island, but perceptions abroad.

‘I’ve had a few customers contact me and ask how the situation is,’ he said. ‘Of course there wasn’t much to cover and everyone was going about their usual routine.’

He said an elderly customer postponed his trip after watching the news.

Tourism remains one of the main pillars of the Cypriot economy, accounting for approximately 14 percent of GDP. British are among the most visited on the island. More than 1.4 million Britons visited Cyprus last year; this number accounts for approximately 30 percent of all arrivals.

Although official figures for May have not yet been published, those working in the tourism sector say there are signs that confidence is slowly returning.

Alikie Anastasiou, a British-Cypriot from Paralimni who works as operations manager for CyCruises, a cruise company based in Ayia Napa, said: ‘The tourism industry has faced cancellations and slower bookings following the escalation of the Iran conflict and the drone incident in Akrotiri. What we are seeing now is that perception is catching up with reality. ‘Cyprus remained safe throughout.’

He added that the company’s boat tours were fully booked during the last public holiday period and demand was strengthening ahead of the busy season.

‘Visitors are returning and the trend in bookings is increasing’, a sentiment echoed by others running travel-related businesses on the island.

On the famous Nissi Beach, holidaymakers lie on sun loungers, sip cocktails and paddle in the clear Mediterranean waters.

A representative of a nearby luxury hotel told the Daily Mail that occupancy rates dropped to about 40 percent in March and April; this was a period when the facility was normally fully occupied. However, things got better towards June.

The story is similar in Limassol. The sprawling Vegas-style five-star City Of Dreams Mediterranean hotel is reporting an estimated 40 percent increase in bookings in the coming months; The 500-room hotel is approaching full capacity on weekends by the end of July.

Thanos Michaelides, President of the Cyprus Hoteliers Association, recently stated that the sector continues to be cautiously optimistic and stated that visitors are now making reservations at the last minute. Although visitor numbers have not yet fully recovered, hopes are growing that the island’s summer season can be saved.

Leading travel search engine Skyscanner reports that searches for round-trip economy flights from the UK to Cyprus increased by 8 per cent from March to May, with average prices almost 6 per cent lower.

Despite the growing optimism, the FCDO’s current recommendations look worrying. The website warns: ‘Regional tensions create significant security risks and disrupt travel.’

Sarah Hordle, a 58-year-old Briton who has lived in Cyprus for two decades and is the manager of Island Home Villas in Paralimni, said by phone that instability in the Middle East is nothing new and rarely worries expats and visitors returning to the island.

Lisa Aston, 54, owner of Black Horse in Chorley, Lancashire, who has been visiting Cyprus regularly for the last 15 years and is now holidaying in Cyprus for the third time this year, said: ‘Following the drone incident we had two flights canceled but we rebooked and arrived here at the end of April.

‘It was really quiet then. Even the Protaras strip was dead and the bars were empty. ‘This time it’s still quieter than this time of year, but it’s definitely busier than before.’

New booking data suggests he may be right.

According to TravelSupermarket, bookings to Cyprus last week were nearly ten times the level seen at the beginning of March. The price comparison site also stated that holiday package deal prices are approximately 20 percent lower than in previous years.

TravelSupermarket Holidays and Deals Manager Chris Webber is optimistic. ‘We still have a way to go before we return to pre-conflict levels, but the recovery is well and truly underway.’

He added: ‘The good news for holidaymakers is that prices look much cheaper than last summer; The average seven-night package is down around £250 per person on an annual basis. The conflict has pushed this into the late booking market, so we expect Cyprus bookings to continue to increase week on week as we move towards the summer.’

Hoteliers, including Leonardo Hotels, Mare Ayia Napa and Paphos, Louis Hotels and Sunrise Hotels, are hoping that special summer discounts of up to 35 per cent on accommodation, first-child free offers and free transfers will be enough to persuade Brits to return to the island to save the Cyprus summer.

This is when the government’s message to tourists is firm.

Costas Koumis, Cyprus’ deputy minister for tourism, told the Daily Mail: “My message to the British public is clear: Cyprus is open, Cyprus is safe and Cyprus is ready to welcome you, just as we have welcomed British visitors for generations.”

‘England remains our oldest and largest tourism market. “The best answer to any doubt is the experience itself: our sunshine, our sea, our food and, above all, the warmth of Cypriot hospitality,” he said.

Asked what he would say to travelers considering a holiday to the island, Mr Assias, co-owner of Fools and Horses Pub, gave a less formal but characteristically Cypriot answer.

’People should be more concerned about forgetting to wear sunscreen,’ he said.