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Marios Polyviou: Cautious optimism from last-minute bookings – Hotel occupancy in Larnaca down 15%

Hotel occupancy rates in Larnaca fell by around 15% in both July and August compared with the same period last year, Marios Polyviou, President of PASYXE Larnaca (the local hoteliers’ association), told CNA. He added, however, that last-minute bookings for August are generating cautious optimism.

He also described agreements signed between Larnaca hotels and UK tour operators TUI UK and Jet2 as “particularly significant”, noting they will greatly help Larnaca’s tourism market.

Larnaca has been considerably affected by the war in the Middle East and the prevailing geopolitical situation, Polyviou said in response to a CNA question, adding that uncertainty remains in the tourism market

In the early months, the impact was significant, he said, but the situation later stabilised, with tourist traffic in July – at the height of summer – still arriving at reduced occupancy levels.

According to Polyviou, July closed with occupancy rates around 15% lower than last year, while August also started “slowly”, with occupancy at about 75%, compared with around 90% in the same month of 2025.

However, he noted there is also a more optimistic side, as last-minute bookings for August are being recorded, improving the picture. “We hope that by the end of August we will have a considerably better picture,” he said.

Main tourist markets

Referring to the markets feeding Larnaca’s tourism, Polyviou said Israel remains the primary market, noting that from the second half of July the number of flights from Israel to Larnaca Airport returned to last year’s levels.

Specifically, he said, there are around 25 flights a day from Israel to Larnaca Airport.

The second most important market remains the UK, followed by Germany, Poland and Greece, as well as tourist markets from various other EU countries.

Cautious optimism for September

As for prospects for September and autumn in general, the PASYXE Larnaca President described any forecast as risky, since, he said, the course of tourist traffic will depend to a large extent on the geopolitical situation in the Middle East.cyprus-mail+1

For September, however, the emerging picture is more positive, as, according to Polyviou, Larnaca is recording good booking rates, with the expectation that at least the situation will not be worse than the corresponding period last year.

For the autumn months, however, he stressed, it is difficult to make a safe forecast, as much will depend on developments in the Middle East.

16% drop in tourism revenue in first half

Polyviou also made special reference to tourism revenue, noting that the figures come directly from the latest Statistical Service report.

He said that for the entire first half of 2026 there is a drop of around 16% in tourism revenue compared with last year.

He explained that the real drop during the crisis months may be even greater, if one takes into account the very positive picture recorded in the first two months of the year.

Specifically, in January and February 2026 an increase of around 15% was recorded compared with the same period last year.

Therefore, he noted, the overall drop of around 16% for the entire six-month period may translate into an even larger drop during the four months that followed and were affected by the crisis.

Agreements with TUI UK and Jet2 significant

Polyviou also described as particularly significant the agreements signed between Larnaca hotels and UK companies TUI UK and Jet2.

As he explained, these are private cooperation agreements between Larnaca hotels and the two largest UK tour operators, something that, he said, greatly pleases the city’s hotel community.

He noted that an organised arrival of tour operators in Larnaca has not been recorded since the coronavirus pandemic period, underlining the importance of these specific agreements for the local tourism market.

“This fact will help the Larnaca market a great deal,” he said, expressing hope that in 2027 there will be a significant increase in arrivals, at least from the UK market. 

(Source:InBusinessNews)