Published on
December 28, 2025
Cyprus, facing a major energy crisis in 2026, is grappling with soaring electricity prices and delayed LNG projects, which are threatening to disrupt its tourism and airline industries. With major hotel chains and airlines bracing for higher costs, travelers may soon find that a trip to the Mediterranean island could come with a much steeper price tag.
Cyprus Faces Major Energy Crisis in 2026: How Soaring Electricity Prices and Delayed LNG Projects Could Skyrocket Travel Costs for Tourists and Airlines
As we head into 2026, Cyprus is preparing to face one of its most significant energy challenges in recent years. With soaring electricity prices and delayed natural gas projects, the tourism, airline, and hospitality industries are bracing for a turbulent year. While Cyprus remains a popular Mediterranean destination for travelers, the potential for increased travel costs could be a reality for those planning a visit. This article dives into the current energy crisis, its impact on key industries, and what tourists can expect when booking their Cyprus holiday in 2026.
High Electricity Prices: What Does This Mean for Tourists?
Cyprus has long relied on diesel and heavy fuel oil for much of its electricity generation. While renewable energy sources such as solar power are abundant on the island, their integration into the grid has been slow, resulting in high energy costs. In 2025, electricity prices in Cyprus were some of the highest in Europe, and the outlook for 2026 suggests that prices will remain elevated unless immediate action is taken to address the energy crisis.
For tourists, high electricity prices mean that the cost of staying in hotels, dining at restaurants, and even taking taxis will likely increase. Hotels across the island, including well-known brands like Marriott, Hilton, and Four Seasons, have already been forced to adjust their prices to offset the rising costs of energy. Visitors should expect higher utility surcharges on their accommodation bills, particularly during peak travel months like the summer.
Energy-intensive services like air conditioning and swimming pool heating are expected to become more expensive for hotels to maintain, which could be passed onto guests in the form of higher room rates or additional fees. This is a concern for families and budget travelers who may find that their holiday costs skyrocket unexpectedly due to the increased cost of electricity.
How Delayed LNG Projects Are Affecting Cyprus’ Energy Landscape
The delayed development of Cyprus’ Liquefied Natural Gas (LNG) import terminal at Vasiliko is a key factor contributing to the energy crisis. Initially planned to provide a more affordable and sustainable source of energy, the terminal’s construction has been plagued by setbacks. The terminal is crucial for reducing Cyprus’ reliance on costly fuel oil and transitioning to cleaner natural gas. However, with construction delays continuing into 2026, there is no clear timeline for when Cyprus will begin importing LNG.
Without LNG, Cyprus remains vulnerable to volatile energy prices. The current reliance on diesel and fuel oil continues to drive electricity costs up, making it harder for both businesses and consumers to absorb the financial strain. The energy uncertainty could lead to further price hikes for both airlines and the hospitality industry, as these sectors are highly dependent on affordable and stable electricity for their operations.
For travelers, the impact is twofold. Not only will the cost of accommodations rise, but the prices of flights to Cyprus are also expected to increase. Airlines, already facing rising fuel prices, may find it challenging to maintain competitive fares if they have to contend with soaring operating costs driven by higher energy expenses.
Impact on Airlines: Are Airfares About to Skyrocket?
Airlines operating in and out of Cyprus are likely to feel the effects of the island’s energy crisis. The aviation industry is known for being heavily impacted by fuel costs, which account for a significant portion of airline expenses. With Cyprus’ energy situation affecting local airport operations, such as lighting, ground services, and airport infrastructure maintenance, these costs could inevitably be passed down to passengers.
In 2026, travelers could see higher airfare prices for flights to Cyprus, particularly from the UK, Israel, and Germany, which are among the island’s top source markets. Airlines like EasyJet, Ryanair, and Aegean Airlines are already experiencing rising operating costs, and while demand for flights to Cyprus remains high, these increased costs may force airlines to raise their fares to compensate for the growing energy burden.
While some tourists may still find attractive deals for flights to Cyprus, especially if booking in advance or during off-peak periods, those planning last-minute trips may face higher prices. A surge in demand combined with rising operational costs could result in ticket prices climbing, making Cyprus a more expensive destination in 2026.
How the Hospitality Industry Is Adapting to Rising Costs
The hospitality industry in Cyprus is already adapting to the high cost of energy. Major hotel chains have implemented measures to cut costs and minimize the impact of energy price hikes on their operations. However, these measures often involve passing some of the costs onto guests. The increasing cost of utilities, particularly electricity and water, has led to surcharges on hotel stays, which could range from a few extra euros per night to more significant fees during peak season.
For example, hotels in popular tourist regions like Ayia Napa, Limassol, and Paphos are expected to implement higher rates to cover rising operational expenses. Many resorts rely heavily on air conditioning and large-scale energy use to keep guests comfortable in the hot Mediterranean climate. As Cyprus faces another scorching summer, energy consumption in hotels is expected to rise, further driving up costs.
Flight Details and What Tourists Need to Know
Flights to Cyprus are still widely available, but travelers should be prepared for potential price hikes as airlines adjust to the growing energy pressures. Popular carriers such as Ryanair, EasyJet, and Aegean Airlines continue to operate routes to Cyprus from major European hubs, including London, Tel Aviv, Berlin, and Athens. However, travelers booking for 2026 should be mindful of how rising energy prices could affect the final cost of their flights.
For those booking through budget airlines, it’s important to book early to secure the best fares, as last-minute bookings could result in inflated prices. If you’re flying to Cyprus during the summer, expect a higher volume of tourists, which can lead to crowded airports and longer wait times at check-in counters. Cyprus’ main airports, Larnaca and Paphos, are currently undergoing upgrades to accommodate increasing passenger traffic, but delays are still possible due to the rising demand and logistical challenges posed by the ongoing energy crisis.
Travel Tips for 2026: Navigating the Energy Crisis
Book Early for Better Prices
Booking flights and accommodations as early as possible is the best way to secure the most affordable prices. As energy costs continue to rise, last-minute bookings are likely to cost more. Early birds can take advantage of discounts and special offers, especially during off-peak seasons.
Consider Alternative Accommodation Options
While large hotel chains may increase their prices, travelers might consider alternative accommodation options such as vacation rentals, hostels, or boutique hotels. These accommodations are often smaller and may have more flexibility in pricing, which could help mitigate the impact of rising electricity costs.
Be Prepared for Higher Dining Costs
Restaurants and cafés in Cyprus are also expected to raise their prices as energy costs climb. Dining in the more tourist-centric areas, such as Limassol’s waterfront or Ayia Napa’s party zone, could be particularly costly. For those on a budget, consider local tavernas or smaller eateries, where prices may be more reasonable.
Pack Light and Use Public Transport
Given that energy surcharges could impact transportation costs, travelers might want to pack lighter to avoid excess baggage fees. Also, Cyprus offers a reliable bus network, and using public transport can save you money on taxis or car rentals.
Stay Informed About the Energy Situation
Before booking your trip, stay updated on Cyprus’ energy situation. While things may improve, it’s important to keep an eye on local news to avoid any unexpected surcharges or power outages. Cyprus’ government is working to resolve the energy issues, but as we approach 2026, the situation remains fluid.
What to Expect in 2026: The Future of Cyprus Tourism
Despite the challenges posed by the energy crisis, Cyprus remains a sought-after destination for tourists. Its beautiful beaches, rich history, and vibrant culture continue to attract visitors from around the world. However, the ongoing energy struggles are likely to impact the island’s tourism sector, making it more expensive for tourists to visit.
The combination of high electricity prices, delays in LNG projects, and rising operational costs for airlines and hotels means that travelers will need to budget more carefully when planning their trip to Cyprus. Airlines, already grappling with higher fuel prices, are likely to pass on some of these costs to passengers, while hotels and restaurants will do the same.
While 2026 presents challenges, Cyprus is making strides toward a greener and more energy-efficient future. The government’s commitment to renewable energy projects and the eventual completion of LNG projects will bring much-needed relief to the island’s energy sector. Until then, however, travelers should be prepared for a more expensive experience when visiting this beautiful Mediterranean paradise.
In conclusion, Cyprus remains an attractive destination for travelers, but the reality of an energy crisis in 2026 cannot be ignored. As energy prices soar and the hospitality and airline industries adjust to the rising costs, tourists should expect higher travel expenses. By booking early, considering alternative accommodation options, and staying informed about the island’s energy situation, visitors can still enjoy a memorable and affordable trip to Cyprus.
