The Cypriot government has moved with unusual speed to protect its most labour-intensive export industry—tourism—after war in the Middle East sent booking cancellations soaring and left many hotels contemplating premature closure. Labour Minister Marinos Mousiouttas on 3 April unveiled a one-month support plan that will reimburse 30 per cent of wages for up to 80 per cent of each hotel’s workforce between 1 and 30 April 2026, with payments capped at €1,324 per employee. To qualify, properties must show turnover down at least 40 per cent year-on-year or occupancy below 60 per cent, figures many coastal resorts now meet after package-tour operators diverted capacity away from the Eastern Mediterranean. In return for state aid hoteliers must guarantee zero layoffs before 31 May and continue to pay the balance of salaries and social-insurance contributions. Applications are processed through the online Ergani platform and must be certified by an external accountant; officials warn that ineligible claims will be clawed back. Industry leaders welcomed the scheme, saying it buys time to assess demand for the peak summer season and avoids a repeat of the large-scale redundancies seen during the pandemic. However, they cautioned that a one-month lifeline is only a stop-gap if conflict drags on. For multinational employers with relocated staff or project teams in Cyprus, the measure should help preserve service levels by keeping experienced hospitality workers in place. Mobility managers are advised to review hotel contracts, as some properties may delay reopening beyond Easter to remain eligible, potentially affecting corporate block bookings.
Source: Cyprus Mail
