Only 23% of hotel and tourist accommodation in Cyprus currently holds a full operating licence, according to figures published by the Audit Office in its report on the Deputy Ministry of Tourism.
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The Audit Office report on the Deputy Ministry of Tourism notes that 55% of accommodation operates without full legal compliance, while 22% operates only with a temporary licence.
It is also stated that in the government-controlled Famagusta region, only 24 of the 241 tourist accommodation establishments are licensed.
Responding to the findings of the report, the Deputy Ministry of Tourism acknowledges that substantial progress has been made in the licensing of tourist businesses, but points out that the problem remains largely unresolved, as more than half of the tourism units have never submitted an application to obtain a licence.
In its statement, the Deputy Ministry says it will take into consideration the observations of the Audit Office and proceed with the necessary compliance measures.
At the same time, it recalls that the issue of licensing has preoccupied the tourism sector for almost 30 years, and worsened significantly between 2014 and 2018, when extensive renovations and extensions to hotel units, following the 2013 town-planning incentives, created additional outstanding cases.
During the five-year transitional period provided for in the 2019 legislation, only 43 operating licences were issued, with the result that by April 2023 just 6% of hotels had a regular licence.
To speed up procedures, a new bill was submitted in 2023 extending the compliance deadline to 31 December 2025, while at the same time introducing stricter provisions and intermediate control stages, with particular emphasis on safety and health protection.
According to the most recent data, by the end of 2024 the number of fully licensed accommodation establishments had risen to 94, a figure corresponding to 12.69% of the total. In addition, 146 units, roughly 19.7%, obtained an operating certificate as provided for in the current legislation.
Today, 23% of hotel units operate with a full licence, while a further 22% are active with a temporary operating licence.
The Deputy Ministry clarifies that, under the new legislative arrangement, tourist businesses can continue to operate legally until 31 December 2026, provided they hold a building permit for a hotel or other tourist accommodation.
Despite the measures taken, the definitive settlement of the issue continues to be hampered by the fact that more than 50% of units have never submitted a licensing application, which is a basic precondition for completing the process.
The Deputy Ministry adds that over the past two years consultations have been under way with the competent state bodies, with the aim of definitively resolving the problem and ensuring conditions of legality, safety and equal treatment for all businesses in the sector. At the same time, regular reminders are sent to sector professionals to comply with the relevant obligations.
As regards self-catering tourist accommodation, the Deputy Ministry notes that the measures implemented since 2023 have produced significant results, as the number of registered units has increased from 4,765 in April 2023 to 8,478 by 29 June 2026, representing a rise of 78%.
Furthermore, during the past year the competent services lodged 88 complaints concerning premises operating without being registered in the official register.