Cyprus launches push to counter ‘false’ image of regional safety

The Employers and Industrialists Federation (Oev) on Thursday said that Cyprus remains a safe and reliable destination for international investment, business activity and quality tourism, following a meeting of its executive committee to review regional developments.

The federation stated that maintaining stability, security and the smooth functioning of the economy is a top priority and a collective responsibility for the country.

“The resilience of the Cypriot economy has been tested in recent years in extremely adverse conditions and has proven strong institutionally, operationally and organisationally against every kind of crisis and international or regional geopolitical upheaval,” the federation said.

The statement explained that sectors linked to tourism and companies exporting to Gulf countries and the wider Middle East, including pharmaceutical industries, are currently facing challenges.

According to the federation, these challenges will be addressed with prudence, calmness and effectiveness.

The executive committee also called on regular people to help clarify the real situation regarding the country’s safety and to correct misperceptions that spread internationally during the early days of the military operations in the region.

“We can lower the tone in the public dialogue, return the discussion to our everyday issues and creative priorities, and return as quickly as possible to normality,” the organisation said.

The federation also urged the immediate restoration of the programme of European Union meetings and activities in Cyprus that were postponed during the early stages of the crisis.

What is more, Oev said these postponements were based on “an incorrect assessment of risk and exaggeration of the situation during the first days of the crisis”.

It added that Oev president George Pantelides will raise the issue personally in Brussels during meetings scheduled for March 18, 2026.

Pantelides is expected to meet president of the European Commission Ursula von der Leyen and president of the European Council António Costa in order to request that postponed meetings and activities of EU bodies be rescheduled in Cyprus.

The organisation further stated that it will continue to “systematically monitoring developments in the region and contributing to the public dialogue in order to safeguard economic stability, protect business activity and maintain sustainable economic growth”.

It should be noted that concerns over the potential impact of regional tensions on the tourism sector have intensified in recent days, with industry representatives warning that misleading perceptions abroad may already be affecting travel demand.

Oev director general Michalis Antoniou told the Cyprus News Agency (CNA) on Wednesday that the current situation is characterised by what he described as “reasonable and calm concern”.

He explained that the concern stems from the incorrect message of danger that has been transmitted internationally, which he said does not reflect the reality in Cyprus.

According to Antoniou, the message has already caused damage to the tourism sector, particularly for March.

Developments in bookings have been disappointing, he said, with the slowdown appearing to extend into April as well.

“It reflects a very slow pace of reservations, something that we need to handle quickly and effectively,” Antoniou said.

He stressed that the most important step would be the immediate launch of a targeted international campaign promoting Cyprus as a safe and high quality destination for work, leisure and holidays.

“There is damage being caused without reason or cause by the misconception that Cyprus is in a state of war,” Antoniou said.

The Cyprus Chamber of Commerce and Industry (Keve) also expressed concern about the economic impact of the regional crisis.

The chamber warned that tourism and hospitality are often among the first sectors affected by geopolitical developments, noting that cancellations, slower booking flows and growing uncertainty are already being recorded in international markets.

The organisation stressed that “tourism is a key pillar of the Cypriot economy, supporting thousands of businesses and workers across hospitality, services, trade and transport”.

At the same time, the government has taken steps to coordinate its response with industry stakeholders in order to counter misleading perceptions abroad about the country’s stability.

During a meeting with tourism stakeholders and ministers at the presidential palace, Nikos Christodoulides said the gathering aimed to coordinate actions between the state and the private sector.

“I considered it appropriate to hold this meeting to coordinate our actions in order to address the completely false image that some people, especially abroad, are creating,” the president said.

Christodoulides stressed that tourism remains one of the most important pillars of the economy, generating €3.69 billion in revenue last year and accounting for 14 per cent of national GDP.

“It was important that the previous year, as well as 2024, were record seasons for tourist arrivals and revenue,” Christodoulides said.

“We are all well aware of the importance of the tourism sector in the country’s GDP and in our economy,” he added.

The president said authorities would examine current data and agree on both immediate and longer term responses if necessary.

“We will first see the data as it is at the moment, as well as the moves we will make immediately, in the medium term and in the long term should the need arise,” he said.

Government spokesman Konstantinos Letymbiotis later said the meeting included an extensive exchange of views between the state and industry representatives.

“It is a positive fact that we have recently seen the flight schedules of most airlines being restored and this leads to normality,” Letymbiotis said.

“Life does not correspond in any way to the exaggerations that we often see from the international press,” he added.

Industry representatives, however, warned that uncertainty linked to regional developments has already affected reservations.

Hotel association president Thanos Michaelides said that declines in reservations in March and April, partly due to airport closures in the Middle East, do not necessarily mean tourism momentum will be lost.

Trade union representatives are also monitoring developments in the sector. Neofytos Timinis, speaking on behalf of Peo’s branch of unionised hotel workers, said the union is collecting information about cancellations and declining reservations for the coming months.

He told CNA that in some hotels workers have already been placed on partial suspension as a precaution.

Timinis also said that certain establishments are facing issues related to the employment of workers from third countries.

The matter will be discussed at a union meeting scheduled for March 13, aimed at preparing proposals to address the situation and limit the impact on workers.

Meanwhile, Timinis’ counterpart at trade union Sek Michalis Frangou said labour organisations believe the situation should be monitored before decisions are taken.

“There is an assessment that a little more time should be given so that the course of the situation becomes clearer,” Frangou said.