The Cyprus hospitality venues association (Pasika) has expressed its strong opposition to a new draft law proposed by the Deputy Ministry of Tourism, warning that it will not hesitate to take strong measures if the bill is enacted.

The bill, titled “The Establishment and Operation of Catering and Entertainment Venues Law of 2025”, was approved by the Cabinet earlier this week.

According to the Deputy Ministry, the new legislation is designed to replace the existing framework governing the operation of recreation and entertainment centres, introducing simplified procedures, modernised regulations, and revised operating hours.

Deputy Minister of Tourism Kostas Koumis said that the law aims to modernise legislative provisions, support entrepreneurship, and promote service quality in the hospitality sector.

“The proposed law introduces significant changes compared to the current framework, as it simplifies several criteria and processes related mainly to the categorisation and licensing of catering and entertainment venues,” he said.

He explained that the legislation abolishes outdated and unnecessary requirements, such as the need for architectural plans to be pre-approved by the Deputy Ministry of Tourism before submission to the Department of Town Planning and Housing, as well as the classification of venues based on the type of services offered.

Koumis added that it also removes rigid infrastructure criteria, such as mandatory kitchen sizes, and eliminates outdated obligations, including the requirement for official approval of price lists.

The new law also introduces stricter enforcement provisions and on-the-spot fines for violations, with the possibility of temporary closure orders in cases of repeated breaches of operating hours.

Koumis said that, in essence, “the law seeks to eliminate outdated regulations and processes that add no value to the sector, while improving service quality, reducing administrative burden and protecting the rights of the public.”

However, Pasika, which represents restaurants, bars, and cafes, among other similar businesses, has described the draft law as deeply problematic and unfair.

The association claims that the new legislation “serves the interests of a few large operators at the expense of smaller, family-run businesses”.

In a statement, the association said that by reducing operating hours for taverns, restaurants, bars and beerhouses, while extending hours until 5:00 am for music and dance venues and banquet halls, the proposed legislation “creates unfair competition and concentrates market power among a few big entrepreneurs”.

Pasika also criticised the decision to rename the law from “recreation centres” to “catering and entertainment venues,” saying this change reflects an attempt to redefine Cyprus’ hospitality identity.

“The Cypriot brand risks being transformed from a quality hospitality destination into a one-dimensional ‘party destination,’” the association said.

It argued that the new framework undermines the authentic Cypriot experience of hospitality and gastronomy, which has long been one of the island’s key cultural assets.

Pasika warned that it “will not hesitate to take excessively drastic measures to express its strong disagreement,” adding that it hopes those responsible “will reconsider the damage they are about to cause to the country.”

The association’s statement reflects growing tensions between small hospitality operators and the Deputy Ministry of Tourism, as the industry awaits further discussion before the bill’s introduction to parliament.

The government maintains that the legislation will ultimately benefit both businesses and consumers, bringing the sector into alignment with modern European standards and encouraging greater competitiveness.