In this paper we attempt to analyze the role of education tourism in Northern Cyprus. We measure the contribution of universities to the Turkish Cypriot GNP and look for possible links between the number of international students coming in for university education and the growth of GNP. This is conducted through a time-series econometric modeling and analysis. One of the main aims of this paper is to study the contribution of education tourism to the recent growth rates in Turkish Cypriot GNP. Since education offers positive externalities, we also try to capture the domestic contagion effect of education in the Turkish Cypriot economy. In this study, we take into consideration factors like quality of education, tuition fees, living expenses and the cultural background of international students. The final part of this paper focuses on government involvement in promotion of the sector.