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Ayia Napa lies near Cape Greco at the eastern part of Cyprus, south of Famagusta, and forms part of a larger area known as Kokkinochoria (“Red Villages”, a name derived from the vivid red colour of the soil). It is a town of the Famagusta District, in the remaining Greek-controlled southern part of the district, while the northern part has been occupied by Turkish forces since 1974.

Ayia Napa is about 8 kilometres (5.0 mi) from Protaras, a town that has recently seen similar development, but still manages to remain low-key and remains more favourable for families and Cypriot locals.