ON FOOT TO STEM THE RISKS IN THE ECONOMY - CCCI & OEB ON HOT COALS -Filenews 2/3 by Eleftheria Paizanou
The economic operators of Cyprus are on hot coals after the escalation of tension in the Middle East and the effects that may arise in the country.
Although it is too early to estimate the magnitude of the impact, tourism, the increase in fuel prices and, by extension, the prices of supply chain products are among the first impacts that Cyprus is likely to face.
Already from the first twenty-four hours of the expanded war in the Middle East, the first side effects on the country's tourism, which for years has been one of the strongest pillars of the Cypriot economy, began to be recorded.
Due to the proximity of Cyprus to the countries of the Arabian Gulf, which have been on fire in the last few hours, major tour operators have contacted the Cypriot authorities, expressing concern and concern.
In fact, some of them said that they are considering cancelling their trips to Cyprus, at least at the beginning of the tourist season, until the situation is cleared.
The Secretary General of the CCCI, Filokypros Roussounidis, speaking to "F", said that there is information that some large tour operators have expressed concern about the developments, stressing that they may cancel some tourist packages to Cyprus in April.
The General Manager of OEB, Michalis Antoniou, said that the situation is being closely monitored, pointing out that since 2023 it has been internationally established that Cyprus is a country of security in the wider region.
Economist Yiannis Telonis, also speaking to "F", noted that there is a risk of affecting Cypriot tourism, especially based on what sees the light of day.
As he said, a plan should be drawn up to deal with the risks that may arise, so that Cyprus is fully prepared before the start of the summer season
However, before the new conflict in the Middle East, the messages about the course of Cypriot tourism in 2026 were encouraging.
Concern about fuel prices
Strong concern is also recorded in relation to fuel prices. On Saturday, Iran had closed the Strait of Hormuz, while yesterday there was an attack on a tanker offshore. About a third of the world's oil trade passes through the Strait of Hormuz, and if they are closed for a long time, there are expected to be serious consequences.
The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. Oil from Saudi Arabia, the United Arab Emirates, Kuwait, Iraq and Iran passes through there.
Economist Yiannis Telonis noted that, so far, an increase in fuel prices is not justified, pointing out, however, that this could happen if the problem is prolonged. At the same time, he called on citizens to be especially careful in phenomena of profiteering.
For his part, the Secretary General of the CCCI described the situation as worrying, stressing that if the war continues in the coming days, there may be repercussions on commercial activity.
As he mentioned, possible delays in the import of certain products, combined with a possible increase in fuel prices, could cause a knock-on effect on businesses.
According to Mr. Roussounides, the prolongation of the war will directly affect commercial and business activity in Cyprus.
Yesterday, OEB held an emergency meeting, during which the situation and the economic and business implications of the war in the Middle East were assessed. OEB proceeded to set up a special response team, which will record and codify the problems of businesses and forward them to the competent authorities.
In a statement, the Organization calls on affected businesses to contact by email at info@oeb.org.cy address (marked "Crisis in the Middle East") or by text message via WhatsApp or Viber at +357 99024617.
However, in the last 48 hours, due to the war, a total of 73 flights to and from the airports of Cyprus have been cancelled. On Saturday, 25 flights were cancelled and yesterday 48, which mainly concerned routes to Middle Eastern countries, as the airspace was closed.
