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Parliament has thrown a temporary lifeline to dozens of hotels and tourist accommodations that are technically operating without a proper license, approving a law that allows them to keep their doors open, under strict conditions, while they try to get their paperwork in order.
The bill, passed Thursday with 25 votes in favor and 15 abstentions, introduces a special operating license for hotels that simply cannot meet today’s licensing requirements, not because they don’t want to, but because the system makes it nearly impossible to do so.
And lawmakers were blunt about the stakes: without a fix, many hotels would be forced to shut down, dragging jobs, bookings and tourism revenue down with them.
Why this law was needed
Despite repeated extensions over the years, only a small number of hotels have managed to fully comply with existing licensing laws. MPs pointed to a familiar villain, bureaucracy, especially delays in securing fire safety approvals and other certificates required to issue an operating license.
During discussions in the Commerce Committee, MPs warned that failing to act would trigger a domino effect: closures, economic damage and embarrassment for a tourism-driven country that markets itself as “open for business.”
The new law pushes the final deadline for securing a full operating license to November 30, 2026, while introducing a structured, time-limited escape hatch, the special operating license.
What the special license does and doesn’t do
This isn’t a free pass.
The special license will be valid for three years, with a single two-year renewal, giving hotel owners a clear window to fix illegal or irregular additions and bring their properties into line with the law. After that, there are no more excuses: operate legally or shut down.
A key focus is fire safety, which MPs repeatedly described as non-negotiable. The law:
- Extends the Fire Department’s review period from 30 days to six months, acknowledging real-world delays.
- Standardizes how fire protection studies are reviewed.
- Extends fire safety certificates to three years, renewable once for two more, but only after on-site inspections.
- Allows authorities to revoke certificates immediately if safety rules are ignored or illegal changes are made.
Importantly, hotels lose their fire certificate if they quietly modify buildings without updating plans, a clear warning against “fix it later” construction.
Less paperwork, more pressure
MPs also scrapped a requirement that owners submit costly real estate valuations and special audit reports just to qualify for the special permit, a move aimed at cutting red tape without lowering safety standards.
But pressure remains. Each renewal requires proof that illegal or irregular works are being fixed, confirmed by certified engineers. Once the special license expires, no hotel can operate without a full license, full stop.
What MPs said (in a nutshell)
- DISY’s Kyriakos Hatzigiannis, who submitted the bill, said the endless cycle of extensions wasn’t working. This, he argued, replaces delays with a compliance-focused system tied to legality and safety.
- AKEL MPs backed the bill with amendments, saying bureaucracy, not bad faith, is the real problem, while stressing fire safety safeguards.
- DIKO said the special permit is a necessary compromise, given licensing bottlenecks and the risk of closures.
- The Greens said tourism matters, but legality, hygiene and fire protection can’t be optional.
- EDEK called the law a step in the right direction while warning that bureaucracy must finally be tackled.
- Independent MP Alexandra Attalidou struck the hardest tone, saying Cyprus keeps rewarding non-compliance and that “at some point, this really must be the last extension.”
The bottom line
Parliament didn’t legalize illegality; it hit pause.
Hotels get breathing room, not immunity. The message from lawmakers is clear: fix the problems, meet safety standards, and get licensed, or the grace period ends.
For a tourism industry built on sunshine and trust, this may be the last chance to clean house before inspectors, and consequences, come knocking.
*With information from CNA
