Cyprus hotel groups seek private desalination amid water shortages

Eleven leading hotel chains across Limassol, Larnaca and Paphos have submitted applications to install on-site desalination systems, tapping into a €3 million subsidy scheme.

The move supports an emergency plan to ease water stress on municipal supplies during Cyprus’s busy tourist season.

The Ministry of Agriculture launched its subsidy scheme in March to promote private desalination plants in the hospitality sector.

Under the incentive, individual hotels building their own units may receive up to €300,000, while collaborative installations serving multiple properties are eligible for as much as €550,000.

The Water Development Department (WDD) has simplified licensing, allowing permits for plants producing up to 1,500 m³ of water per day to be issued within a week of application.

Hotels typically need between 200 and 500 m³ a day to meet guest demand.

Dozens have already signed contracts with desalination suppliers, yet construction cannot begin until WDD issues a water abstraction permit and later inspects and approves the system before it goes live.

Cypriot law requires establishments to notify authorities within 21 days of completing the installation to arrange the final inspection.

Desalination units are estimated to cost around €200,000 for a system producing 200 m³ per day, plus approximately €30,000 for preparatory works.

Suppliers say a return on investment is achievable within five years given rising water prices. However, some hoteliers are delaying installations until after the peak season to avoid noise disruption and logistical challenges.

The hotels association has flagged concerns that rapid deployment may prove “unfeasible” this year, citing technical, environmental and energy-intensity issues.

Cyprus is facing critical water shortages following the second driest winter in a decade, with reservoir levels dipping below 25 per cent of capacity—significantly lower than the 47 per cent seen in 2024.

The country currently operates four permanent desalination plants, each producing about 235,000 m³ daily, while a fifth remains offline after a fire.

Mobile units from the UAE will add 15,000 m³ daily this summer, and another four mobile plants are expected by October, each adding 30,000 m³ per day.

With tourism accounting for around 13.5 per cent of Cyprus’s GDP and 4 million visitors arriving last year, hotels face growing pressure to secure independent water sources.