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Karaoke blares from the speakers at the Rockafellas bar on Protaras’ main strip as children stream by demolishing late-night ice creams. A few minutes away, outside the Fools and Horses Pub, punters wash down kebab with cold pints, while football plays on television screens.

On the surface, little appears to have changed on the sun-soaked island. Yet away from the neon lights and packed restaurant terraces, tourism insiders say the country has endured one of its most challenging starts to the season in recent times.

Cyprus, an island which sits in the eastern Mediterranean Sea, south of Turkey and west of Syria and Lebanon, found itself thrust into international headlines after a drone incident at RAF Akrotiri on March 1, which resulted in only minor damage and no casualties.

Though Cypriots remained positive, the noise surrounding the incident and wider conflict in the Middle East sparked concern among travellers, leading to cancellations and reduced bookings.

In March 2026, total visitor numbers fell by more than a third while British visitors declined by around a quarter compared to the previous year, according to tourism arrival data from Cystat.

For many businesses that rely on visitors, the impact on tourism has been clear.

‘Some businesses took a bigger financial hit than others, from 20 to 40 per cent,’ Paschalis Assias, 44, co-owner of the Fools and Horses Pub in Protaras, told the Daily Mail.

He said there was a slight uptick last month but said there’s still a lot of uncertainty about the upcoming season.

‘There's definitely not as many people as last year,’ he explained.

Many in the hospitality sector reported a slowdown in bookings and an increase in cancellations in the weeks following the incident, with some describing March and April as significantly quieter than in previous years.

The British Foreign, Commonwealth and Development Office (FCDO) never advised against travel to Cyprus. However, some, including Mr Assias, believe the media and social media played a part in the decline of tourism in recent months. There was also a mention of the drone strike on the UK government’s website, which was removed recently.

For veteran tourist guide Panicos Neophytou (@panicosneo on Instagram), the biggest challenge was not events on the island itself but perceptions abroad.

‘I had a few clients contact me asking how the situation was,’ he said. ‘Of course, there wasn't much to mention, and everyone went about their usual routine.’

He said one elderly client postponed their trip after watching the news.

Tourism remains one of the pillars of the Cypriot economy, making up around 14 per cent of its GDP. Brits are among the island's top visitors. Last year, more than 1.4million Britons visited Cyprus, accounting for roughly 30 per cent of all arrivals.

Although official figures have yet to be published for the month of May, those working in the tourism industry say there are signs that confidence is slowly returning.

British-Cypriot Alikie Anastasiou in Paralimni, who works as an operations manager for CyCruises, a boat excursion company based in Ayia Napa, said: ‘The tourism industry experienced cancellations and slower bookings after the escalation of the Iran conflict and drone incident at Akrotiri. What we’re seeing now is that perception is catching up with reality. Cyprus has remained safe throughout.’

She added that the company's boat tours were fully booked over the last bank holiday period, with demand strengthening ahead of the peak season.

‘Visitors are returning, and the trend in bookings is improving,’ which is something echoed by others operating travel-related businesses on the island.

Down at the famous Nissi Beach, holidaymakers lounge on sunbeds, sip cocktails and paddle in the clear Mediterranean waters.

A representative from a nearby luxury hotel told the Daily Mail occupancy rates dropped to around 40 per cent in March and April – a period when the property would normally be fully-booked. However, things have improved heading into June.

In Limassol, the story is similar. The sprawling Vegas-style, five-star City Of Dreams Mediterranean hotel reported an estimated 40 per cent increase in bookings in the coming months, with the 500-room property tracking close to full capacity on weekends until the end of July.

The president of the Cyprus Hotels Association, Thanos Michaelides, recently said the industry remained cautiously optimistic, noting that visitors are now booking at the last minute. Though visitor numbers have yet to fully recover, there are growing hopes that the island's summer season can be saved.

Skyscanner, a leading travel search engine, reported that searches for return economy flights from the UK to Cyprus had increased by 8 per cent from March to May and the average prices were almost 6 per cent lower.

Despite the growing optimism, the current advice from the FCDO sounds ominous. On its website, this warning remains: ‘Regional escalation poses significant security risks and has led to travel disruption.’

Over the phone, Sarah Hordle, 58, a Briton who has lived in Cyprus for two decades and is director of Island Home Villas in Paralimni, said that instability in the Middle East is not something new and is rarely a concern to immigrants and return visitors to the island.

Lisa Aston, 54, owner of the Black Horse in Chorley, Lancashire, who’s been visiting Cyprus regularly for the past 15 years and who is currently on holiday in Cyprus for the third time this year, said: ‘We had two flights cancelled after the drone incident, but we rebooked and came out here at the end of April.

‘It was really, really quiet then. Even the Protaras strip was dead, and the bars were empty. This time, it's still quieter for the time of year but definitely busier than before.’

Fresh booking data suggests she might be right.

According to TravelSupermarket, bookings for Cyprus last week were running at around ten times the level seen in early March. The price comparison site also said that holiday package deal prices are around 20 per cent lower than previous years.

Chris Webber, Head of Holidays and Deals at TravelSupermarket, is optimistic. ‘There's still a way to go before we're back to pre-conflict levels, but the recovery is well and truly underway.’

He added: ‘The good news for holidaymakers is that prices are looking a good deal cheaper than last summer – the average seven-night package is down by as much as £250 per person year-on-year. The conflict has pushed this into a later-booking market, so we'd expect Cyprus bookings to keep climbing week on week as we move deeper into summer.’

Hoteliers – including Leonardo Hotels, Mare Ayia Napa and Paphos, Louis Hotels and Sunrise Hotels – are hoping special summer discounts of up to 35 per cent off stays, first child free offers and complimentary transfers will be enough to entice Brits back to the island to save Cyprus’ summer.

This is while the government’s message is steadfast to tourists.

‘My message to the British public is a straightforward one: Cyprus is open, Cyprus is safe, and Cyprus is ready to welcome you, just as we have welcomed British visitors for generations,’ Costas Koumis, Cyprus’ deputy minister of tourism, told the Daily Mail.

‘Britain remains our oldest and largest tourist market. The best response to any doubt is the experience itself: our sunshine, the sea, the food, and, above all, the warmth of Cypriot hospitality,’ he said.

Asked what he would say to travellers considering a holiday to the island, Mr Assias, co-owner of Fools and Horses Pub, offered a less formal but characteristically Cypriot response.

​‘People should worry more about forgetting to put on sunscreen,’ he said.

Snap up these Cyprus packages for guaranteed sunshine at unbeatable prices this summer