Nicosia, Cyprus. The association of Cyprus tourist enterprises (Stek) said on Wednesday that a recent Audit Office report confirmed its concerns about short-term holiday rentals, renewing its call for a comprehensive overhaul of legislation governing the sector.
Stek said weaknesses in the supervision and enforcement of online short-term rental platforms posed risks to visitors and Cyprus’ tourism industry.
Supervision concerns
The association said the Audit Office’s findings showed that weaknesses in supervision and control mechanisms for electronic short-term rental platforms could affect user safety, as well as the credibility and quality of Cyprus’ tourism product.
Stek said it had warned for years that the existing legal framework had serious shortcomings, both in its provisions and in its implementation and enforcement.
Licensing and enforcement
The association said accommodation providers continued to operate and advertise without required licences, while effective inspections remained limited and cooperation between competent authorities was insufficient.
It said these shortcomings demonstrated that the current system was unable to fulfil its intended purpose and that maintaining a register of accommodation properties was no longer sufficient.
Housing and tourism impact
Stek called for a comprehensive framework of supervision, inspections and effective enforcement, saying all hospitality operators should be subject to the same rules, obligations and safety standards.
The association said inadequate regulation created unfair competition for the licensed hotel industry. It added that the expansion of short-term rentals put pressure on the housing market, made affordable housing harder for permanent residents to secure, affected local communities and neighbourhood quality of life, and could expose visitors to safety risks.
