Newsroom
Cyprus has made major progress in bringing its hotel sector into compliance with licensing requirements, with the share of properly licensed hotels rising sharply from just 5-6% in 2023 to about 45% today, Deputy Minister of Tourism Kostas Koumis told Parliament on Tuesday.
Speaking before the House Committee on Energy, Commerce, Industry and Tourism, Koumis said the licensing problem has been unresolved for at least 20 years, dating back to the first wave of hotel renovations. He noted that the situation became even more serious between 2014 and 2018, a period during which urban planning incentives introduced in 2013 contributed to further complications.
The committee meeting was held in the context of the government’s referral back of a recently approved amendment to the law regulating hotels and tourist accommodation. The rejected amendment would have introduced a special operating licence for businesses unable to meet standard licensing obligations, provided certain conditions were met.
Koumis said the government’s decision to return the bill was justified, as parts of the legislation were found to conflict with constitutional principles, including equality before the law, legality, and freedom of contract. Despite this, he stressed that the government remains open to granting an additional extension period to allow more hotels to complete the licensing process, in order to avoid disruption to the tourism industry.
He explained that licensing progress has been achieved through two separate channels: around 23% of hotels have been licensed through the main legal framework, while a further 22% obtained approval through a parallel procedure introduced via changes to Article 18 of the existing law.
However, the Deputy Minister expressed concern that more than half of hotel businesses have still not even applied for licensing. He said authorities are trying to identify why so many operators remain outside the process, suggesting some may be waiting for another grace period, while others may be reluctant to reveal possible violations.
Koumis acknowledged that the state is in a difficult position, since the hotel industry is a major contributor to the national economy. He said the government does not intend to take aggressive enforcement measures such as withdrawing operating permissions, as that could destabilize tourism.
A representative of the Legal Service supported the government’s concerns, stating that the returned amendment raised serious constitutional issues, including separation of powers, equal treatment of compliant businesses, and potential increases in public spending.
Committee chairman and DISY MP Kyriakos Hatzigiannis said it is ultimately the responsibility of the executive branch to propose a workable solution, particularly on matters related to health and safety standards.
After the meeting, Koumis emphasized that licensing progress has also improved at the level of total accommodation capacity, saying that around 70% of hotel beds are now licensed, compared to just 5.8% in 2023.
Looking ahead to tourism performance in 2026, Koumis said early indicators are positive but cautioned that the post-pandemic travel market is increasingly dominated by last-minute bookings, making firm forecasts difficult. He added that Cyprus continues to be a competitive destination and that cooperation with major international tour operators has strengthened in recent years, helped by large-scale conferences held on the island.
He also suggested that Cyprus may be nearing its peak in summer arrivals, arguing that tourism success should not be judged solely by continued growth during the high season. While a small rise in arrivals this year is still possible, he said the ministry’s priority is to further expand winter tourism. According to Koumis, arrivals in the most recent winter season were up 23% compared with the winter of 2022–2023, a trend he described as encouraging.
