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Holiday bookings rebound in eastern Mediterranean amid Iran tensions

Financial Times Companies •
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Travel agencies report a sharp uptick in reservations across the eastern Mediterranean as tourists reassess the Iran crisis risk. Holiday bookings in Cyprus, Greece and southern Turkey rose by double‑digit percentages in the first two weeks of June, according to regional operators. The surge follows a brief dip when the conflict sparked safety concerns.

Airlines have responded by adding extra capacity on routes to Athens, Larnaca and Antalya, while hotels report near‑full occupancy for the peak summer weeks. Travel operators attribute the rebound to a perception that the conflict’s direct impact on the region remains limited, despite heightened alerts in the Gulf. The pattern mirrors past episodes where geopolitical jitters faded once travellers judged the threat localized.

Investors note that the renewed demand could boost ancillary revenues for carriers and hospitality groups, offsetting earlier revenue shortfalls tied to the crisis. Tourism boards in the affected countries are promoting last‑minute packages to capture the momentum, aiming to recover projected shortfalls of several hundred million euros.

Overall, the data suggests that the Iran crisis, while unsettling, has not derailed the summer travel season in the eastern Mediterranean, and market participants are adjusting supply to meet the revived appetite.