Middle East War Triggers Holiday Cancellations in Turkey and Cyprus

The Middle East conflict is triggering a wave of holiday cancellations. The impact now reaches far beyond the immediate war zone. Turkey and Cyprus are feeling the strongest effects. Travelers are shifting bookings to western Europe and the Caribbean. As a result, prices in popular alternative destinations are rising.

Cyprus and Turkey See Sharp Declines

Accommodation prices in Cyprus dropped over 12% last week. This compares with the week before the conflict began. In Bodrum, Turkey, prices sank more than 25%. Luxury hotel group Muskita Hotels reported many cancellations for March and April. Bookings for the rest of 2026 have also slowed significantly.
Nick Aristou, commercial director at Muskita, warned about the timing. “The war has to be over soon,” he said. If it continues for two or three more weeks, the summer season will suffer. That would be truly serious for the tourism sector.
Drone attacks on a British base in Cyprus put the country in headlines. This caused prospective travelers to put bookings on hold. The arrival of a British destroyer in Cyprus may further discourage visitors.

Travelers Shift to Alternative Destinations

Holidaymakers are rushing to book perceived safer destinations. Italy, Malta, and Croatia are seeing strong demand. Spain’s Balearic and Canary Islands are also popular. Cape Verde is another emerging favorite.
Thomas Cook reported a rise in bookings for Portugal and the Balearics. Kuoni saw Caribbean bookings up 20% compared to last year. Italy bookings climbed 55% during the same period.
However, this shift is pushing prices up. Irene Hays of Hays Travel noted that demand has already increased costs. Booking agents report being swamped with clients seeking alternatives. Availability for Easter and May half-term is moving quickly.

Airlines and Tour Operators Feel the Impact

Shares in On The Beach have dropped over 12% in the past month. The company reported a significant slowdown in bookings. Popular destinations like Turkey, Greece, Cyprus, and Egypt are affected.
EasyJet chief executive Kenton Jarvis noted the predictable pattern. Demand dropped in Cyprus, Turkey, and that side of Africa. The airline saw stronger demand in the Canary Islands and Cape Verde.

Hopes for a Quick Recovery

Some industry leaders remain hopeful. Thanos Hotels in Cyprus reported a small booking pick-up at the end of last week. Cyprus announced measures to support the tourism industry. These include wage support for hotel employees in April.
Egypt is also responding with new incentives. The country will pay airlines a bonus for each flight that is 60% full. This is a lower threshold than the previous 75% requirement.
Willie Walsh, head of IATA, urged travelers not to overreact. “I would go to Greece right now,” he said. “In fact, I would go to some of the places in the Gulf.”