Cyprus has made progress in licensing hotels and tourist accommodation, but more than half of tourist units have still never submitted an application, the Deputy Ministry of Tourism said this week.

Responding to the Audit office’s report, the Deputy Ministry said it intends to comply with its observations, while stressing that the issue has been unresolved for almost three decades. 

The problem, it said, worsened between 2014 and 2018, following large-scale renovations and expansions by hotel units after the urban planning incentives announced in 2013. 

According to the Deputy Ministry, during the five-year transitional period provided for under the 2019 legislation, only 43 operating licences were issued. This meant that by April 2023, just 6 per cent of hotels had been licensed. 

In an effort to address the issue, a new bill was submitted in 2023, extending the deadline to December 31, 2025, while introducing stricter provisions and interim deadlines, with particular emphasis on safety and health requirements. 

The Deputy Ministry said the results have since improved. By December 31, 2024, the number of licensed accommodation units had risen to 94, corresponding to 12.69 per cent of the total, while another 146 units, or 19.7 per cent, had obtained the operating certificate provided for by the legislation. 

At present, according to the figures included in the Audit Service’s report, 23 per cent of hotel accommodation units hold a full operating licence, while 22 per cent operate with a temporary licence. 

The Deputy Ministry added that, under the latest legislative arrangement, all tourist units may operate legally until December 31, 2026, provided they have a hotel or tourist accommodation construction permit. 

However, it stressed that a final solution remains difficult, as more than 50 per cent of tourist units have never submitted a licensing application. This, it said, is a basic condition for the issuing of the relevant permits. 

The Deputy Ministry said consultations have been ongoing over the past two years with all relevant state bodies, with the aim of finally resolving the issue and ensuring conditions of legality, safety and equal treatment across the sector. 

It also said reminders are regularly sent to the hotel industry to encourage compliance. 

Regarding self-catering accommodation, the Deputy Ministry said coordinated actions since 2023 have led to a sharp rise in registered units. The number increased from 4,765 in April 2023 to 8,478 on June 29, 2026, marking a 78 per cent increase. 

At the same time, it said that over the past year inspection staff filed 88 complaints concerning premises that were operating without being listed in the relevant register. 

The Deputy Ministry said the remaining issues raised in the Audit office’s report will be addressed at a later stage.