Cyprus Tourism Licensing Crisis: Only 23% of Accommodations Hold Full Operating Permits

A recent report from the Audit Office regarding the Deputy Ministry of Tourism reveals that only 23% of tourist accommodations in Cyprus currently hold full operating licenses. The findings indicate a significant gap in legal compliance across the sector.

According to the Audit Office, 55% of accommodation providers are operating without full legal compliance, while an additional 22% function under temporary licenses. The report highlights a particular concern in the government-controlled Famagusta region, where only 24 out of 241 tourist establishments are properly licensed.

In response to the report, the Deputy Ministry of Tourism acknowledged that while progress has been made, the issue remains a major challenge. The Ministry noted that more than half of all tourism units have never even applied for a license.

The Ministry stated it will review the Audit Office’s observations and implement necessary compliance measures. Officials pointed out that licensing issues have persisted for nearly 30 years, exacerbated by a surge in renovations and extensions between 2014 and 2013 following town-planning incentives. During a transitional period established by 2019 legislation, only 43 operating licenses were issued, leaving a significant deficit by April 2023.

To address these delays, a new bill was introduced in 2023. This legislation extends the compliance deadline to December 31, 2025, while implementing stricter oversight and intermediate control stages focused on health and safety standards.

Current data shows that by the end of 2024, the number of fully licensed establishments rose to 94, representing 12.69% of the total. Additionally, 146 units (approximately 19.7%) have obtained operating certificates under current regulations. Collectively, 23% of hotels operate with full licenses, while 22% hold temporary permits.

The Deputy Ministry of Tourism’s Response

The Deputy Ministry clarified that under current legislative arrangements, tourist businesses are permitted to operate legally until December 31, 2026, provided they possess valid building permits for hotel or tourist accommodation.

Despite these efforts, the Ministry noted that progress is hindered by the fact that over 50% of units have never submitted an initial licensing application, which is a mandatory prerequisite for the process.

The Ministry added that it has been consulting with state bodies over the last two years to resolve these issues and ensure industry-wide legality, safety, and fair competition. Regular reminders are also being issued to industry professionals to fulfill their regulatory obligations.

Regarding self-catering accommodations, the Ministry reported significant improvements since 2023. The number of registered units rose from 4,765 in April 2023 to 8,478 by June 29, 2026—a 78% increase. Furthermore, authorities filed 88 complaints over the past year against premises operating without official registration.

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