**Just 1 in 5 Cyprus Hotels Fully Licensed as 2027 Deadline Looms**
As the deadline for full licensing approaches, the hotel industry in Cyprus is facing a significant challenge, with only 141 out of 728 hotels currently holding an operating license. This alarming statistic was highlighted by Evripides Loizides, president of the Paphos hoteliers association, who emphasized the urgent need for state intervention to address the licensing crisis.
In an interview with the Cyprus News Agency (CNA), Loizides described the licensing situation as one of the most pressing issues confronting the hotel sector. He pointed out that the current licensing rate is alarmingly low, with only about 19% of hotels meeting the necessary regulatory requirements. Loizides stressed that the responsibility for this predicament does not rest solely on the hoteliers themselves, as various procedural and institutional obstacles hinder the licensing process.
Loizides called for immediate action from the government, urging legislative changes or amendments to existing regulations to facilitate the licensing of hotel units. The urgency of the matter is heightened by the impending expiration of temporary permits on January 1, 2027. Without timely intervention, the implementation of a new licensing framework could lead to severe repercussions for the industry, potentially jeopardizing the operational status of many hotels.
In addition to the licensing crisis, Loizides provided insights into the current state of the tourism sector in Cyprus. He reported a decline in hotel occupancy rates in Paphos, with July figures showing a 10% decrease compared to the same month in 2025. While this represents an improvement over earlier months, where occupancy losses reached approximately 15%, there are concerns about the overall trajectory of the tourist season.
Looking ahead, Loizides expressed cautious optimism for August, anticipating satisfactory performance despite a trend of last-minute bookings. However, he voiced strong apprehension regarding September, with current bookings down by 15% from the previous year, and an even more challenging October expected.
The impact of external factors, such as geopolitical tensions and rising living costs, has led to a shift in consumer behavior, with travelers opting for alternative destinations. This trend has contributed to delays in reservation decisions, as potential guests are increasingly waiting until the last moment to finalize their travel plans.
Despite the challenges, Loizides noted that the most significant threat to the hotel industry is not merely the decrease in occupancy rates but rather the substantial drop in room prices. He reported that hotel prices have fallen by over 20%, significantly affecting revenue and the overall viability of hotel businesses.
On a more positive note, Loizides highlighted the robust performance of the Israeli market, which has seen a marked increase in visitor numbers, bolstered by a growing number of air connections. If this trend continues, Israel could emerge as Paphos' second-largest tourism market, trailing only the United Kingdom.
As the hotel industry in Cyprus grapples with these multifaceted challenges, the call for state intervention and regulatory reform becomes increasingly urgent. The impending 2027 deadline serves as a critical juncture for the sector, and stakeholders are hopeful that necessary measures will be taken to ensure the sustainability and growth of the industry in the years to come.