Tourism: Israel and UK Markets Expected to Account for 50% of Arrivals in 2026

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Haris Papacharalambous and Kostas Koumis said it was positive that losses in arrivals were limited to 7%. Strong growth from Israel offset part of the decline in European markets.

About 50% of tourist arrivals in Cyprus in 2026 are expected to come from Israel and the United Kingdom, according to Haris Papacharalambous, president of the Cyprus Association of Travel and Tourism Agents (ACTTA). He and Deputy Minister of Tourism Kostas Koumis described it as positive that losses in arrivals were limited to 7%.

Speaking on Thursday at ACTTA’s annual general meeting in Nicosia, Papacharalambous presented figures for the first half of 2026. Arrivals from European countries fell by nearly 10%, while the decline from the United Kingdom exceeded 10%. The French and Italian markets, which are target markets, recorded decreases of 36.5% and 33.5%, respectively.

Fast-growing Israeli market

The gap resulting from the declines was covered by the Israeli market, which, he said, “is showing impressive increases, especially over the last 3 to 4 months”. Based on current trends, he forecast that arrivals from Israel would reach about 650,000 or even 700,000. Together with the United Kingdom, the two markets are expected to account for around 50% of total arrivals, something that has not happened since 2019 and which, he said, creates new patterns of dependence.

Referring to 2025, the ACTTA president said that, according to the Statistical Service, almost 4.5 million tourists visited Cyprus, while slightly fewer than 2 million Cyprus residents travelled abroad. Greece was the destination for 33% of Cypriot trips, with the United Kingdom in second place among their preferences. For 2026, Papacharalambous forecast that trips by Cypriots abroad would exceed 2 million.

On inbound tourism, he said that a record 4.5 million arrivals were recorded in 2025. Of these, 42% came from EU countries and almost 81% from Europe more broadly. Revenue reached €3.7 billion, equivalent to about 14% of GDP. Taking the wider hospitality sector into account, the figure reaches 20% of GDP.

Success 'not for granted'

Total arrivals in 2025 increased by 12%. The largest market, the United Kingdom, grew by about 5% and accounted for nearly 32% of the total, while the second-largest market, Israel, recorded growth of 38% and represented 13% of inbound tourism. Papacharalambous said that a key goal was to develop tourism throughout the year.

On overtourism, he said Cyprus had not been directly affected, but he believed the island was not far from that possibility. He proposed developing tourism during months of lower demand and strengthening alternative forms of tourism in order to avoid the worst outcomes.

In his address, Deputy Minister of Tourism Kostas Koumis said the previous two years had gone down as years of historic performances for Cypriot tourism. He said 2024 was described as a milestone year after a double record in arrivals and revenue, while tourism in 2025 surged in both arrivals and revenue, with the overwhelming majority of tourism businesses saying they were completely satisfied. However, he added, events in 2026 had reminded the sector that success in tourism cannot be taken for granted.

Koumis attributed the recovery to government measures, including restoring Cyprus’s international tourism reputation, increasing promotion and taking targeted steps to maintain the capacity offered by airlines and tour operators. He said the measures led to the sector’s full recovery within a reasonable period.

According to the latest Statistical Service measurement, tourism revenue in the first seven months of 2026 was down 7% compared with the previous year, but up 9.2% and 13.8% compared with 2024 and 2023, respectively. The Deputy Minister said the figures showed that the measures had achieved the immediate return of the sector to full recovery and demonstrated that even difficult crises could be managed successfully through determination, collective effort and sound assessments. He added that tourism’s resilience must be preserved through further actions and decisions in the years ahead.

Economy's driving force

The Deputy Ministry’s priority, he continued, is to further strengthen the tourism product and Cyprus’s competitiveness as a destination. Through European programmes, such as the Recovery and Resilience Plan, new points of interest have been created, including the Carob Thematic Centre in Anogyra and the Halloumi House in Pissouri. New cycling routes in Troulloi and pilgrimage routes in Sotira, Famagusta, have also been designed, along with other projects.

Koumis stressed the responsibility to build a modern tourism model that invests more in the visitor experience, showcases authentic Cyprus and is based on sustainable development, for the benefit of local communities and the country’s citizens.

In his address, CCCI Secretary-General Philokypros Rousounides said tourism had long been the driving force of the Cypriot economy. He said ACTTA’s importance had once again been demonstrated this year by the problems caused to tourism by the geopolitical crisis in the Middle East, and noted that the Association’s members had helped limit losses in arrivals to a single-digit percentage.

Rousounides added that the CCCI considers a modern, effective and business-friendly framework to be a basic prerequisite for the sustainable development of tourism and the wider economy.

Source: CNA