Cyprus banks doubt tourism expectations

Cyprus banks doubt tourism expectations

Banks in Cyprus are cautioning against high expectations for new tourism records on the island, citing a lackluster performance in May.

Despite concerns, they predict tourism won’t plummet in 2024 but are skeptical about setting new records due to ongoing wars and inflation. Senior banking sources revealed that card transactions related to the tourism sector in May didn’t meet expectations, signaling a cautious outlook for this summer season. They attribute the decline partly to conflicts in neighboring regions, which have impacted tourist flows from traditional markets.

While official May figures are pending, data suggest a correlation with April, when tourism arrivals saw a slight dip from the previous year but remained steady overall from January to April.

Arrivals from key countries like the UK, Israel, Poland, Germany and Greece maintained Cyprus’ tourism momentum, bolstered by favorable weather conditions during the winter months. Previous years, particularly 2023, set high benchmarks for tourism revenue, making it challenging to replicate in 2024. Despite a promising start in the first months of 2024, uncertainties loom over surpassing previous records.

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