Tourism was hit world-wide after the events in NYC last year.
In Limassol some years ago the situation with the roads was much worst. Now they improved a lot. I believe the same is true for most places.
The prices are indeed a problem, but why you said about decreasing quality of services? How exactly you came to this conclusion? Can you explain?
About the visas problem I hope that the government will arrange it in such a way that will not affect the flow of Russian tourists significantly. Unfortunately this is something we can’t avoid. On the other hand when Cyprus will become EU member more EU citizens might be encouraged to visit our island. Maybe Russia can join the EU also?