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Amidst the clamor of unstable political and economic developments, unrecognized political status and embargos by several countries, the foreign investment climate in Northern Cyprus is extremely challenging. Within the tourism sector of Northern Cyprus, foreign investments are quite rare and are channeled in favor of bigger, more established operations. This study examines the extent of foreign direct investments (FDI) for the tourism sector of Northern Cyprus and recommends ways to optimize the economic value of such investments. Findings reveal that the economic value of FDI in Northern Cyprus could be optimized either by further strengthening the region’s current integration with Turkey, or by adopting the European Union route for its economy.