I just a did a quick search and found that airfare to Cyprus is about twice that of anywhere in western Europe. That's about what I would expect too. The cheapest flights from North America are generally into London, Paris, Amsterdam, or Frankfurt. Sometimes Madrid and Rome are reasonable too. Cyprus also adds a fair amount of travel time. Don't get me wrong - Cyprus would be a cool destination and I would love to travel there. It's also wonderful someone is will to try to organize a location other than North America. However, I'm willing to bet a Cyprus location will be such an inconvenient place to get to that we'd keep a lot of people away.
I also worry that without anyone 'local' to a proposed conference that it would be difficult to do it well.
Cheers,
Jer