Key facts
- Only 23% of tourist accommodation in Cyprus has a full operating license.
- 55% of accommodation operates without full legal compliance, and 22% has a temporary license.
- Over half of tourism units have never applied for a license.
- A new bill extended the compliance deadline for tourist businesses to December 31, 2026, if they hold a building permit.
- Registered self-catering tourist accommodation units increased by 78% between April 2023 and June 2026.
A report by Cyprus's Audit Office has revealed that only 23% of the island's tourist accommodation holds a full operating license. The findings indicate that 55% of establishments operate without full legal compliance, while an additional 22% possess only a temporary license. In the Famagusta region, a specific example highlighted, only 24 out of 241 tourist accommodation establishments are licensed.
The Deputy Ministry of Tourism acknowledged the persistent issue, stating that substantial progress has been made but the problem remains largely unresolved, with more than half of tourism units never having submitted a licensing application. The ministry noted that the licensing challenge has affected the sector for nearly 30 years, worsening significantly between 2014 and 2018 due to renovations following town-planning incentives.
Legislation introduced in 2019 saw limited success, with only 43 operating licenses issued during its transitional period. By April 2023, just 6% of hotels had a regular license. To expedite the process, a new bill in 2023 extended the compliance deadline to December 31, 2025, while introducing stricter provisions focused on safety and health. Recent data shows that by the end of 2024, the number of fully licensed units had risen to 94 (12.69% of the total), and 146 units (19.7%) received an operating certificate.
Under current arrangements, tourist businesses can continue operating legally until December 31, 2026, provided they hold a building permit. The Deputy Ministry emphasized that over 50% of units have not submitted the prerequisite licensing application. Consultations with state bodies are ongoing to resolve the issue and ensure legality, safety, and equal treatment. Regular reminders are sent to sector professionals to encourage compliance.
Regarding self-catering accommodation, measures implemented since 2023 have led to a significant increase in registered units, from 4,765 in April 2023 to 8,478 by June 2026, a rise of 78%. In the past year, 88 complaints were filed concerning unregistered premises.