Economic Uncertainties Temper Optimism Despite Stable Start
Banks in Cyprus are advising against setting high hopes for new tourism records on the island, pointing to an underwhelming performance in May.
- Despite concerns, they expect tourism to remain steady in 2024 but are doubtful about breaking new records due to ongoing conflicts and inflation pressures.
- Senior banking sources note that card transactions linked to the tourism industry in May fell short of expectations, suggesting a cautious outlook for the summer season.
- They partly attribute the decline to regional conflicts affecting tourist inflows from traditional markets.
While the official figures for May are still awaited, data indicate a trend similar to April, which saw a slight dip in tourism arrivals compared to the previous year but remained steady overall from January to April.
- Arrivals from major countries like the UK, Israel, Poland, Germany, and Greece, supported by favourable winter weather, helped sustain Cyprus’ tourism momentum.
- Previous years, especially 2023, set high tourism revenue benchmarks, making it challenging to match them in 2024.
- Although the first months of 2024 showed promise, uncertainties cloud the prospects of surpassing past records.