**Title: Tourism Ministry Reports Hotel Licensing Progress Despite Poor Application Rate**
Cyprus has reported notable progress in the licensing of hotels and tourist accommodations, although a significant challenge remains, as over half of the tourist units in the country have yet to submit an application for licensing. This information was shared by the Deputy Ministry of Tourism in a recent statement, which addressed findings from a report by the Audit Office.
The Deputy Ministry acknowledged the longstanding nature of the licensing issue, which has persisted for nearly three decades. The situation reportedly deteriorated between 2014 and 2018, a period marked by extensive renovations and expansions in the hotel sector following urban planning incentives introduced in 2013. The ministry's data indicates that during the five-year transitional period established by legislation in 2019, only 43 operating licenses were issued. As a result, by April 2023, a mere 6 percent of hotels had secured the necessary licensing.
In response to the ongoing challenges, the Deputy Ministry introduced a new bill in 2023 that aims to extend the licensing deadline to December 31, 2025. This legislation incorporates stricter provisions and interim deadlines, particularly focusing on health and safety standards. Following the implementation of these measures, there has been an observable improvement in licensing outcomes. By December 31, 2024, the number of licensed accommodation units increased to 94, representing approximately 12.69 percent of the total. Additionally, 146 units, or 19.7 percent, obtained the operating certificate mandated by the new legislation.
Current statistics from the Audit Service reveal that 23 percent of hotel accommodation units now hold a full operating license, while another 22 percent operate under a temporary license. The Deputy Ministry emphasized that under the latest legislative framework, all tourist units can legally operate until December 31, 2026, as long as they possess a construction permit for hotel or tourist accommodation. However, the ministry stressed that a comprehensive resolution to the licensing issue remains elusive, given that more than 50 percent of tourist units have not yet submitted any licensing applications, a prerequisite for obtaining the necessary permits.
To address these challenges, the Deputy Ministry has engaged in consultations with relevant state bodies over the past two years, aiming to find a resolution that ensures legality, safety, and equitable treatment across the tourism sector. The ministry also noted that it regularly sends reminders to the hotel industry to encourage compliance with licensing requirements.
In terms of self-catering accommodations, the Deputy Ministry reported that coordinated efforts since 2023 have led to a substantial increase in registered units. The number of registered self-catering accommodations rose from 4,765 in April 2023 to 8,478 by June 29, 2026, reflecting a remarkable 78 percent increase. However, the ministry also highlighted that inspection staff filed 88 complaints over the past year regarding premises operating without being listed in the relevant register.
The Deputy Ministry concluded that while progress has been made in the licensing of tourist accommodations, further work is necessary to address the remaining issues identified in the Audit Office's report. The ministry is committed to continuing its efforts to ensure compliance and improve the overall regulatory framework for the tourism sector in Cyprus.