British intelligence and military sources have raised concerns that the City of Dreams Mediterranean resort in Limassol could potentially be used as an observation point overlooking the nearby RAF Akrotiri base, according to an exclusive report published by The Telegraph.
The resort has firmly rejected the suggestion, stressing that it is a commercial hospitality and entertainment destination with no involvement in any activities beyond tourism and business operations.
Security concerns focus on location
According to The Telegraph, the concerns stem from the location and height of the 16-storey City of Dreams Mediterranean, which opened in 2023 near the British Sovereign Base Areas.
From the upper floors of the complex, parts of RAF Akrotiri are visible, prompting concerns among some British security and military officials that the site could theoretically be used to monitor aircraft movements, military personnel and other activity in and around the base.
Sources cited by the newspaper suggested that, with binoculars and an appropriate vantage point, observers could potentially record aircraft take-offs and landings, as well as movements of personnel and senior officials.
Focus on the resort's upper floors
The resort stands significantly taller than surrounding buildings and dominates the local skyline.
The report notes that access to the highest floor is restricted and linked to the property's two presidential suites.
According to The Telegraph, some officials stationed at Akrotiri have expressed concerns that Chinese authorities could seek to exploit the location for intelligence-gathering purposes.
The newspaper emphasises, however, that there is no suggestion of wrongdoing or illegal activity by businessman Lawrence Ho or by the resort itself.
City of Dreams Mediterranean is owned by Melco Resorts & Entertainment, led by Chinese-Canadian billionaire Lawrence Ho, who is a member of China's Chinese People's Political Consultative Conference (CPPCC).
One source quoted in the report described the top floor of the hotel as a potentially ideal observation point overlooking the busy military installation.
RAF Akrotiri antennas, circled in the image, are visible from the upper floors of the City of Dreams Mediterranean hotel.
Strategic importance of RAF Akrotiri
RAF Akrotiri is regarded as one of Britain's most sensitive overseas military facilities and serves as a key hub for UK operations in the Middle East.
According to The Telegraph, assets stationed at the base include F-35 fighter aircraft and US U-2 Dragon Lady reconnaissance aircraft.
Sources cited by the newspaper said a nearby observation point could theoretically be used to collect information relating to:
- Aircraft sortie patterns.
- Operational procedures.
- Perimeter security measures.
- Military patrol routines.
- Responses to drone threats.
- Visually identifying flights that do not publicly transmit tracking data.
One source described having "eyes on the base" as a potential intelligence advantage.
The newspaper noted that its journalists observed nothing unusual during a visit to the resort, describing it as a conventional luxury destination filled with tourists, families, restaurants, shops, pools and a casino.
Counter-intelligence measures in place
According to the report, RAF Akrotiri is aware of the resort's location and has taken it into account as part of broader counter-intelligence and security planning.
A spokesperson for the UK Ministry of Defence told the newspaper:
"The security of our personnel, our bases and our interests is taken extremely seriously. RAF Akrotiri is protected by robust, multilayered security measures which are kept under constant review. For operational security reasons, we do not comment on the details of those measures."
The newspaper also noted that the base has previously featured in investigations linked to suspected espionage activities.
Resort rejects allegations
City of Dreams Mediterranean strongly rejected any suggestion that its facilities could be used for purposes other than tourism, leisure and business activities.
A spokesperson said:
"City of Dreams Mediterranean is a commercial resort dedicated exclusively to tourism, leisure and business events.
Any suggestion that our facilities serve any other purpose is entirely unfounded and is rejected in the strongest possible terms.
The resort was developed and operates within the licensing, planning and regulatory framework of the Republic of Cyprus and remains subject to oversight by the competent national authorities.
As a property of Melco Resorts & Entertainment, a Nasdaq-listed company, we operate according to the highest international standards of corporate governance, transparency and regulatory compliance.
City of Dreams Mediterranean remains firmly committed to its role as a hospitality and entertainment destination and to its contribution to Cyprus's tourism industry and economy."
