Cyprus hotel occupancy is improving in June compared to spring, but still remains well below historical peaks. Hoteliers face a challenging 2026 season due to regional unpredictability, with hopes pinned on late-summer bookings to curb financial losses.

Recent Trends and Occupancy Levels

Occupancy in Cyprus hotels shows improvement in June compared to previous months, according to Thanos Michaelides, President of the Cyprus Hoteliers Association (PASYXE). However, he pointed out that the tourism market is still performing at lower levels than usual for this time of the year.

Speaking to the Cyprus News Agency (CNA), Michaelides stated that June's bookings are noticeably better than in March, April, and May. Despite the improvement, typical June levels have not yet been reached, though the situation is described as comparatively better than the preceding period.

He noted an upward trend in the flow of bookings, although they remain below normal levels.

Regional Breakdown Across Districts

Regarding occupancy rates, the PASYXE President mentioned that the picture varies significantly from district to district and hotel to hotel. In the Famagusta district, hotel occupancy in June averages around 60%, while in Paphos it reaches approximately 70%, recording a comparatively smaller decrease than last year. He reminded that under normal conditions occupancy rates during the same period last year hovered around 90%.

Regarding Limassol, he noted that the district is in a comparatively better position than other areas, as it also benefits from business tourism. The bed capacity is more limited, which helps maintain better occupancy percentages, he said. Nevertheless, Limassol also shows lower occupancy compared to previous years, albeit to a lesser extent than other provinces.

The Dynamics of Hotel Profitability

Michaelides pointed out that high occupancy rates are required for hotels to be profitable. As he explained, the profitability of hotel units is evaluated on an annual basis; however, in practice, the main tourist activity is limited to about six months a year, making it critical to achieve high occupancy during the peak season.

Key Tourist Markets and Future Outlook

In terms of tourist markets, he noted that the British market continues to be the most important source of tourists for Cyprus, maintaining its lead in arrivals. Positive signals are also being recorded from the Israeli market, which has begun showing activity once again, he concluded.

Referring to the overall picture for this year, Michaelides described 2026 as a difficult year for the hotel sector, underlining that the tourism industry has faced several tough periods from March until recently. He said efforts are focused on maintaining interest in Cyprus and curbing the impact caused by adverse conditions, with the goal of saving as much of the tourist season as possible by the end of the year. However, he noted that the evolution of the situation remains unpredictable.

The Hoteliers Association President expressed hope that following the resolution of the crisis in Iran, there will be further improvement in demand for holidays in Cyprus and the flow of bookings, clarifying however that so far there are no specific indications confirming this prospect. At the same time, he expressed hope that recent developments will contribute to an increase in bookings during the coming months, particularly in July, August, and September.

Source: CNA(ΚΥΠΕ)