Nicosia, Cyprus. Cyprus has made progress in licensing hotels and tourist accommodation, but more than half of tourist units have still never submitted an application, the Deputy Ministry of Tourism said this week.
The ministry was responding to the Audit Office’s report and said it intends to comply with its observations, while stressing that the issue has remained unresolved for almost three decades.
Longstanding licensing problem
The Deputy Ministry said the problem worsened between 2014 and 2018 following large-scale renovations and expansions by hotel units after urban planning incentives announced in 2013.
According to the ministry, during the five-year transitional period provided for under the 2019 legislation, only 43 operating licences were issued. This meant that by April 2023, just 6 per cent of hotels had been licensed.
Legislative changes and updated figures
To address the issue, a new bill was submitted in 2023, extending the deadline to December 31, 2025, while introducing stricter provisions and interim deadlines, with particular emphasis on safety and health requirements.
The Deputy Ministry said the results have since improved. By December 31, 2024, the number of licensed accommodation units had risen to 94, corresponding to 12.69 per cent of the total, while another 146 units, or 19.7 per cent, had obtained the operating certificate provided for by the legislation.
At present, according to figures included in the Audit Service’s report, 23 per cent of hotel accommodation units hold a full operating licence, while 22 per cent operate with a temporary licence.
Applications remain a key obstacle
The Deputy Ministry added that, under the latest legislative arrangement, all tourist units may operate legally until December 31, 2026, provided they have a hotel or tourist accommodation construction permit.
However, it stressed that a final solution remains difficult, as more than 50 per cent of tourist units have never submitted a licensing application. It said this is a basic condition for the issuing of the relevant permits.
The ministry said consultations have been ongoing over the past two years with all relevant state bodies, with the aim of resolving the issue and ensuring conditions of legality, safety and equal treatment across the sector.