Nicosia, Cyprus. Cyprus has increased the share of licensed hotels to around 45% from 5–6% in 2023, Deputy Minister of Tourism Kostas Koumis told parliament on Tuesday as authorities work to address a long-standing regulatory issue.
Parliament committee discussion
Koumis appeared before the House energy, commerce, industry and tourism committee during discussion of the referral of an amending law regulating the establishment and operation of hotels and tourist accommodation.
He said the problem dates back at least 20 years, starting with early hotel renovations and intensifying during 2014–2018 following urban-planning incentives introduced in 2013.
Licensing progress and procedures
Koumis said the Christodoulides government addressed the issue from March 2023, when licensed hotels accounted for only 5–6%, while today they reach around 45%, taking into account both licensing procedures.
He said 23% of hotels were licensed through the basic law, while a further 22% were licensed through the parallel procedure under article 18.
Referral concerns and possible extension
On the referral of the legislation, Koumis said it was correct because provisions adopted by parliament violated “the principle of equality, the principle of legality and the freedom of contract”.
He said the government is not opposed to granting a new extension “to ensure the unhindered course of tourism and especially the hotel industry”.
Unsubmitted applications
Koumis said more than 50% of hotels have still not submitted an application and called for an examination of the reasons, including expectations of another grace period or possible irregularities.
He said the state has no intention to revoke operating licences as this would disrupt the tourism sector, adding that while the government is considering a new grace period, hoteliers must assume their responsibilities.
What do you think should be done to encourage more hotels to submit licensing applications?
