Hotel occupancy in Larnaca fell by 15% in July compared with the same month last year, with the local hotel association linking the decline to continued uncertainty caused by the conflict in the Middle East.
Larnaca Hotel Association chairman Marios Polyviou said the tourism market remained difficult to predict, with hoteliers keeping their expectations for August modest.
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July Bookings Remain Below 2025 Levels
Hotels in Larnaca ended July with occupancy 15% lower than in the same month of 2025, Polyviou told the Cyprus News Agency.
August bookings have so far reached around 75% capacity, compared with 90% at the same point last year. Hoteliers are nevertheless hoping that last-minute reservations will help narrow the gap.
Israel remains Larnaca’s largest tourism market. According to Polyviou, flights from Israel began recovering in the second half of July, returning to around 25 flights per day to Larnaca Airport, roughly the level recorded last year.
The UK is the city’s second-largest tourism market, followed by Germany, Poland and Greece.
UK Tour Operators Could Support The Market
Polyviou pointed to agreements between Larnaca hotels and UK tour operators TUI UK and Jet2 as an important source of support for the local tourism sector.
He said the deals could significantly benefit the Larnaca market and expressed hope that tourist arrivals would increase substantially in 2027.
The outlook for September remains uncertain, however, as demand continues to depend heavily on developments in the Middle East. Polyviou said current bookings suggest September should not perform worse than last year, although he cautioned against making firm predictions.
Tourism Revenue Down In First Half
The wider tourism picture also reflects the pressure on Cyprus. According to the Cyprus Statistical Service, tourism revenue fell by 16% in the first six months of 2026 compared with the same period in 2025.
Polyviou noted that the impact of the regional conflict could be more significant than the headline figures suggest. January and February had been particularly strong, with tourism up by 15% compared with the same two months of 2025.
The decline that followed therefore points to a more challenging second half of the year for Larnaca’s tourism sector.
