Cyprus hotels saw a noticeable improvement in occupancy rates in June compared to the challenging months of March, April, and May, according to Thanos Michaelides, chairman of the Cyprus Hoteliers Association. Although bookings showed an upward trend, overall occupancy remains below the usual seasonal averages, with district variations evident. For instance, Famagusta recorded around 60% occupancy, Paphos about 70%, and Limassol maintained a relatively stronger position due to business tourism and limited bed supply.

Michaelides noted that under normal conditions, June occupancy rates were closer to 90%, highlighting the sector's ongoing struggle to recover fully. The United Kingdom continues to be the leading source market for tourists to Cyprus, with signs of increasing demand from Israel as well. The hotel industry described 2026 as a difficult year, particularly between March and recent months, with efforts now focused on sustaining interest and salvaging the tourist season despite unpredictable conditions.

Looking ahead, there is cautious optimism that resolving the crisis in Iran may boost holiday demand and bookings for Cyprus, although no definitive evidence has yet emerged. The sector is hopeful for improved hotel performance during the key months of July, August, and September as it strives to close the gap from previous years' occupancy figures.