Latest News

The Iran War dampens interest in early summer tourism to Cyprus and Greece

The Iran conflict has led to a rise in cancellations of tourists from Cyprus

The forecast for Cyprus' economic growth has been cut in the face of conflict

* Greece and Turkey both see a slowdown in bookings

By Michele ?Kambas

LIMASSOL (Cyprus), March 26th, 2014 (Rtrs). The Iran conflict has caused a spike in cancellations of summer tourists in Cyprus as well as other countries that rely heavily on them.

On February 28, the U.S. and Israel launched an attack on Iran, as Cyprus's tourism sector was about to reopen after winter. On March 2, as Iran launched counter-strikes against the island, a British base was hit by a drone, leading to a wave cancellations of tourists.

Bookings are down, the latest sign that the war has had a wide-ranging impact. From disrupted oil supplies to massive flight cancellations, the economic outlooks around the world have gotten worse.

AirDNA, a U.S. company that tracks short-term rental bookings, says the cancellation rate for these rentals has risen from 15% before the conflict up to 100% within a few days. This figure has since decreased, but was still around 45% on March 21. Greece and Turkey also saw slight increases in cancellation rates.

Christos Angelides, director-general of the Cyprus Hoteliers Association, said that bookings in March were down by nearly 40% and that April's numbers would be similar.

Nicholas Aristou is the commercial director of Muskita Hotels, Limassol. The company runs two luxury hotels.

He hopes the slowdown doesn't continue into?the summer, when tourist visits usually?pickup.

If we don't protect the high-season months, the destination could be in serious trouble by May.

Pre-bookings may also slow in Greece.

The war has impacted the growth expectations of Cyprus. The Central Bank of Cyprus reduced its economic growth forecast for 2026 from 3.0% to 2.7% this week, based upon the assumption that the conflict will last two months. EasyJet, Jet2 and other budget airlines claim that the demand for destinations in Cyprus and Turkey is waning and has moved to the west Mediterranean like Spain.

Savvas Orphanos sat by himself in a central Limassol district, Ayios Andreou, among a variety of fridge magnets and?pottery. A downpour made an already slow time even worse when we visited. "Unfortunately, as you can tell by the lack of tourists in our area," he said.

The impact of the summer tourist season is also felt in Greece.

Aegean Airlines' spokesperson revealed on Thursday that the airline has seen a drop of double digits in summer bookings from Israel and Gulf States to Greece. George Vernicos of Greece's tourism association SETE said there was a decline in pre-bookings. However, this was partially offset by an influx of people booking flights before the price of plane tickets increased due to oil prices. He stated that the?demand for Greece's largest markets in North Europe and America has dropped.

He said, "We're in an wait-and see phase." "There's a restraint, but the year continues to run positively. Also because the momentum was high before the start of the war." (Additional reporting by Renee Maltezou in Athens, Angeliki Koutantou and Edward McAllister; Editing by Edward McAllister and William Maclean.

(source: Reuters)