this is the other end to the room

Start with a warm color on the walls, a honey or gold. Bring in pieces that remind you of the sun drenched area you hope for. Architectural pieces, of even just pictures of architectural items in sepia tones or black and white in large frames, framed mirrors to add light. What do you think?

Thanks Kelli this picture didnt show it but the walls are actually a stone colour now and we have very large mirrors the same as the coffee table the room is quite big so there is alot of light coming in but the pieces I have are all dark and nick nacks, i need to add colour should I lose the the cushions ? or is it the suite that need to go as its big and bulky ?

Newby - did a search on Houzz for Mediterranean style lounge rooms and it seems the archways seem to be the most important aspect. I do note though that the lounges are all large so your suite seems to fit the bill.

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Thanks for the imput it has given me some great ideas ..

I think the "Mediterranean" of the past -- dark woods, carving and wrought iron -- has been replaced by a lighter look featuring clear colors of sun, sea and sky against white and the colors of nature and food. Think bright and happy and then use your favorite colors, whether they are the saturated blues of Greece, the lavenders and bright flower colors of Provence, olives and wine colors of Italy, the jewel tones of Morocco, or the softer, aged stone and sand colors of the Middle Eastern countries. The dark woods of the furniture are fine as contrast. Put away the heavy pillows and use fresh prints in a mix of patterns, colored glass bowls and straw-colored baskets; large art on the walls depicting vistas of land, sea and sky. The glass doors and patio arches are perfect for the look, contributing to the feeling of a cloistered garden just beyond. Enjoy.

I would vote on getting rid of the sofa. It is rather bulky and dark. Consider replacing it with a softer textile in a warmer color. I would start with a rug to bring in color and then base toss pillows and accessories off that. You may consider changing out the ceiling fan over the sofa for a more decorative light fixture and add do some painting in the space. A great color combination is this blue rug below with various shades of deeper navy and lighter teal. It could be fun to do variations of different hues of the same color.
Best of luck to you

Here are a few more pictures