Cyprus hotel bookings trail last year’s record as regional tensions weigh on tourism

Hotel occupancy across Cyprus is averaging around 85 per cent for July and August, noticeably lower than last year’s record levels, with higher energy costs and continued regional instability weighing on the tourism sector, industry representatives said on Monday. Pasyxe director-general Christos Angelides said that although bookings have improved in recent weeks, the sector remains behind last year’s performance and uncertainty continues to cloud the autumn season. “There has been stronger demand over long weekends, particularly through last-minute bookings from neighbouring countries and the domestic market, which has helped improve the picture,” he said. Even so, he warned that rising energy costs linked to regional conflicts, together with persistently expensive airfares, continue to pose challenges for Cyprus. “We remain optimistic and continue to work together as an industry, but these are issues we must keep in mind,” he said. According to Angelides, hotel occupancy nationwide is currently averaging about 85 per cent during the peak summer months. By comparison, August occupancy reached as high as 97 per cent during last year’s record tourism season, meaning this year’s figures remain around 10 to 15 per cent lower. He said the industry’s focus is now on extending the tourism season beyond the summer months. “Our biggest hope is to build on last year’s performance during the November 2026 to April 2027 period. That is where we believe the difference can be made,” he said, adding that stronger off-season demand could offset the weaker start to this year’s season. Despite the more difficult conditions, Angelides said Pasyxe members remain committed to maintaining high standards of service and preserving Cyprus’ reputation as a quality destination. Meanwhile, Association of Cyprus Travel and Tourist Agents (Actta) president Haris Papacharalambous said tourism performance remains below last year’s levels, although the decline has not been dramatic. “We are behind compared with the corresponding months last year,” he said, adding that the Famagusta district has been affected more than other regions. Papacharalambous said almost all of Cyprus’ key tourism markets have recorded declines compared with last year, with Israel being the main exception. Arrivals from Israel increased by 170 per cent in June compared with the same month in 2025, when the Israel-Iran conflict had disrupted travel. He said one of the biggest challenges facing the industry this year had been perceptions of Cyprus’ proximity to regional conflict, particularly following the drone incident at the British Bases in March and the way it was portrayed by traditional and social media. According to Papacharalambous, every renewed outbreak of hostilities in the region has an immediate impact on bookings. “The effect is visible the very next day,” he said, although he noted that the latest developments had not yet caused a major downturn. Overall, he expects overnight stays across Cyprus to finish the year around 12 to 14 per cent lower than last year’s record-breaking performance.