Cyprus hotels saw an improvement in June compared with the difficult months that preceded it, although the market remains below the levels normally expected for the season, according to chairman of the Cyprus Hoteliers Association (Pasyxe) Thanos Michaelides.

Speaking to the Cyprus News Agency (CNA), Michaelides said hotel traffic in June was clearly better than in March, April and May, when the sector came under pressure from a weaker flow of visitors and a more uncertain booking environment.

However, he said the improvement had not yet brought the industry back to the usual levels for this time of year, adding that reservations were showing an upward trend but continued to move below normal seasonal levels. 

The picture also differs considerably from district to district and from hotel to hotel. In Famagusta district, average hotel occupancy in June stands at around 60 per cent, while in Paphos it reaches about 70 per cent, with the decline there being comparatively smaller than in other areas. 

Michaelides recalled that, under normal conditions, occupancy levels during the same period last year were around 90 per cent, showing the scale of the gap the sector is still trying to close. 

Limassol, meanwhile, is in a relatively stronger position, partly because it also benefits from business tourism.

At the same time, the more limited supply of beds in the district has helped support occupancy rates.

Michaelides said Limassol was also recording lower occupancy compared with previous years, although the decline was less pronounced than in other regions. 

He added that hotels need high occupancy rates in order to be profitable. While profitability is assessed on an annual basis, the main tourism season effectively lasts around six months, making it essential for hotels to secure strong performance during that period. 

Turning to source markets, Michaelides said the United Kingdom remained Cyprus’ most important tourism market and continued to lead arrivals. He also referred to positive signs from Israel, where demand has started to show movement again. 

Looking at the year as a whole, Michaelides described 2026 as a difficult year for the hotel sector, noting that the industry had faced particularly challenging conditions from March until recently. 

He said “efforts were now focused on maintaining interest in Cyprus and limiting the impact of the adverse conditions, with the aim of salvaging as much of the tourist year as possible by the end of 2026.” 

At the same time, he cautioned that the situation remained unpredictable. 

Michaelides expressed hope that, following the end of the crisis in Iran, demand for holidays in Cyprus and the flow of bookings would improve further. However, he clarified that there were not yet specific indications confirming such a development. 

For now, he said the sector hoped that the latest developments would help support bookings in the coming months, particularly in July, August and September.