Newsroom
British intelligence and military sources have told the Telegraph they fear a Chinese-owned resort near RAF Akrotiri could potentially be used to observe activity at the British military base in Cyprus.
According to the British newspaper, the 16-storey City of Dreams Mediterranean, which opened in 2023, occupies a prominent position close to the British Sovereign Base Area and offers panoramic views towards the military installation.
The Telegraph described the location as particularly significant because of the equipment and aircraft operating from Akrotiri. The base is used by the UK’s Royal Air Force and hosts advanced military assets, including F-35 fighter jets, as well as the US U-2 Dragon Lady reconnaissance aircraft.
Sources from the intelligence and military communities told the newspaper that the resort could theoretically provide a suitable vantage point for surveillance. The report also said senior military and security personnel at Akrotiri are aware of the resort’s proximity and have considered the potential security implications.
The allegations concern the ownership of the resort and its location rather than any reported evidence of espionage. The Telegraph acknowledged that there is no indication that City of Dreams Mediterranean or its management has engaged in unlawful activity.
A representative of the resort strongly rejected the suggestion that the property could be used for intelligence purposes.
“City of Dreams Mediterranean is a commercial resort strictly focused on tourism, leisure and business events,” the representative said, adding that claims that the facilities serve another purpose were “completely unfounded”.
The company also said the resort operates under the licensing, planning and regulatory framework of the Republic of Cyprus and remains subject to supervision by the relevant Cypriot authorities.
City of Dreams Mediterranean is owned by Melco Resorts & Entertainment, a company listed on Nasdaq. The resort said its operations follow international standards for corporate governance, transparency and regulatory compliance.
Security measures at Akrotiri
According to the Telegraph, RAF Akrotiri has measures in place to deal with potential surveillance activity. Sources told the newspaper that the base would use counter-surveillance measures where necessary, although they also acknowledged that there are practical limits to preventing observation from nearby civilian properties.
The UK Ministry of Defence told the newspaper that the security of its personnel, bases and interests is taken extremely seriously.
“RAF Akrotiri is protected by robust, multilayered security measures, which we continually review,” a ministry spokesperson said, while declining to provide further details for operational security reasons.
The report comes against a backdrop of increasing scrutiny in Western countries over the security implications of Chinese investment or ownership close to military facilities.
The Telegraph referred to cases in the United States where Chinese entities have acquired agricultural land close to military installations, prompting questions over the potential use of such properties for intelligence gathering.
Previous espionage case linked to Akrotiri
The Telegraph also referred to a separate espionage investigation involving RAF Akrotiri.
Last month, Rashad Sultanov, who holds British and Azerbaijani citizenship, was arrested on suspicion of spying on the base on behalf of the Iranian military. He remains in custody pending extradition to the UK, according to the report.
The case is separate from the allegations concerning City of Dreams Mediterranean, and the Telegraph did not report evidence linking the resort to Sultanov or to the investigation.
The latest claims therefore centre on the strategic location of the resort and the potential surveillance opportunities its height and proximity to the British base could provide, rather than on any established case of espionage involving the hotel.
City of Dreams Mediterranean has categorically rejected any such suggestion and said its activities remain focused on hospitality, tourism and entertainment in Cyprus.
