The Cyprus Tourism Organisation (CTO) said the falling Pound Sterling will affect tourist spending from the UK, although bookings this year have not been impacted so far.

The national tourism authority has been preparing for the possibility of a Brexit since long before the vote, it said.

CTO representatives are liaising with tour operators, Cypriot MEPs and ministers to prepare a plan to deal with any negative fallout on the island’s tourism sector, one of the economy’s core activities.

The UK is the leading source of tourists to Cyprus, in May 2016 alone, 129,000 UK citizens took their holidays on the island. The next in the rankings is Sweden, from where 16,000 tourists came in May.

New order

On June 23rd, the UK voted to leave the European Union, sending the Pound Sterling into free fall and spreading uncertainty to other important markets like tourism and investment.

The process is expected to take two years from the time the UK triggers Article 50, officially notifying EU authorities of its intention to leave. Most economists predict a fall in GDP for the United Kingdom, possibly leading to higher unemployment and reduced consumer spending.

“While the Pound/Dollar is currently trying to move back towards 1.30, the pair has experienced a really rough previous 24 hours and dropped sharply overnight to its lowest levels in over 30 years below 1.28. The reason for the resumption in losses for the British Pound is being attributed to a decline in investor confidence,” says FXTM analyst Jameel Ahmad.