The rising geopolitical tension and military conflict in the Middle East have led to a significant reduction in tourist flows to Turkey and Cyprus. Vacationers are increasingly canceling planned trips or changing their destinations to safer regions, particularly opting for countries in Western Europe.
This is reported by Finway
Decline in Prices at Resorts in Cyprus and Turkey
According to analytics from Lighthouse Intelligence, which specializes in monitoring demand for hotels and short-term rentals, the average cost of accommodation in Cyprus decreased by more than 12% in April and May 2026 compared to data from the week before the conflict began. An even more pronounced drop is observed in the Turkish resort of Bodrum, where hotel prices have plummeted by over 25%.
Representatives of the Cypriot chain Muskita Hotels report a massive cancellation of bookings for March and April, as well as a sharp decrease in demand for the remainder of 2026. They state that if the war in Iran continues for at least another two to three weeks, the summer tourist season risks suffering serious losses, and then
“the situation will become truly critical”.
Demand for European Destinations and Market Response
Amid the crisis in the Eastern Mediterranean, other European countries are experiencing unprecedented tourist excitement. The airline easyJet reports an increase in bookings for the Spanish Balearic and Canary Islands, as well as Cape Verde. Demand for vacations in Italy, Malta, and Croatia is also rising, which has already led to an increase in prices at resorts. According to the travel company Kuoni, demand for the Caribbean islands has risen by 20% this year, and the number of bookings for tours to Italy has surged by 55% compared to the same period last year.
Travel agencies report being overwhelmed by the large number of inquiries for alternative destinations for spring break and Easter. This has also impacted financial markets: shares of the online travel service On The Beach lost over 12% of their value following the company’s announcement of a significant slowdown in bookings.
Countries that have suffered the most losses are implementing emergency measures to support the tourism sector. For instance, Egypt has decided to provide airlines with a bonus of $4,000 for each flight with a 60% occupancy rate (previously, 75% was required). The President of Cyprus announced the introduction of a subsidy program for hotel industry workers in April to preserve jobs and prevent further declines in tourism.
It is worth noting that Poland has risen to second place in the EU in terms of growth in the tourism sector.