Hotel occupancy in Larnaca fell by around 15% year on year in both July and August, as the conflict in the Middle East and continued geopolitical uncertainty weigh on the city’s tourism market.
According to Larnaca PASYXE President Marios Polyviou, the impact was strongest during the early months of the crisis. While conditions have since stabilised, the city entered the peak summer season with occupancy below last year’s levels.
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August Bookings Show Some Improvement
July ended with occupancy around 15% below 2025, while August started at approximately 75%, compared with 90% a year earlier.
Late bookings have since improved the outlook, with Polyviou hoping the figures will strengthen further before the end of the month. Uncertainty remains, however, given Larnaca’s exposure to tourism markets affected by developments in the Middle East.
Israel Remains Key Tourism Market
Israel continues to be Larnaca’s largest tourism market, with flights returning to last year’s levels from the second half of July. Around 25 flights a day are currently operating between Israel and Larnaca Airport.
The UK remains the second-largest market, followed by Germany, Poland, Greece and other EU countries.
September Bookings Look More Promising
While Polyviou said forecasting the autumn season remains difficult, September bookings are currently developing at a good pace, raising hopes that the month will perform at least as well as last year.
Tourism revenue across Cyprus fell 16% in the first half of 2026 compared with the same period in 2025. Polyviou noted that January and February had recorded a 15% increase, suggesting the decline during the subsequent crisis-affected months was more pronounced.
New UK Partnerships Could Boost Larnaca
Larnaca hotels have also signed agreements with UK tour operators TUI and Jet2, which Polyviou described as particularly significant for the local market.
He said a coordinated push by major tour operators into Larnaca had not been seen on this scale since the pandemic. The new partnerships are expected to support British arrivals, with hopes for stronger growth in 2027.
