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The North Cyprus tourism industry has been sensitive to the political instability on the island, which has arisen from the political problems between the Turkish and Greek Cypriots. Economic integration with Turkey and federation with the Greek Cypriots are considered to be two alternative political solutions. This paper evaluates the possible impacts of these two political scenarios on the tourism industry of North Cyprus by using semi‐structured interviews with experts and senior managers. Findings suggest that although economic integration has already been implemented to an extent, it has not contributed to the development of the tourism industry of North Cyprus as hoped. A federal solution to the Cyprus problem is expected to have a more favourable impact on the tourism industry of North Cyprus. Thus, long‐term benefits of the North Cyprus tourism industry lie with a federal solution to the Cyprus problem.

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