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The government is giving unlicensed hotels and tourist accommodations a two-year window to secure their operating licenses, with specific milestones and actions outlined along the way. According to information from "K," the relevant ministry has drafted a new framework aimed at resolving the long-standing issue of licensing for hotel units and tourist accommodations by July 2027. The main goal is to address health and safety concerns, ensuring that all accommodations in Cyprus meet the necessary standards.
The framework, which was presented to the Council of Ministers today, essentially grants hotels a grace period to gather the required documents for licensing. At the same time, it introduces safeguards to ensure progress is made throughout the process. Despite some progress in the licensing process, the percentage of licensed hotels and accommodations remains low. Sources tell "K" that many units may not meet the requirements to remain open after July 2027.
Key Actions and Milestones
The new framework focuses on amending Article 18 of the Regulation of the Establishment and Operation of Hotels and Tourist Accommodation (Amendment) Act, 2024 (Law 27(I)/2024).
Under the new rules, all hotels and accommodations can continue to operate until September 2025. After that, they must meet specific conditions. From October 2025, only those with an existing building permit will be allowed to operate, and their plans will need to align with the actual structure. In addition, hotels must provide a fire protection certificate or a study detailing fire escape and safety measures. If these documents are submitted by the owners, they will be allowed to continue operating until August 2026.
Next, hoteliers must provide health certificates for the centers within their hotels and for swimming pools. They will also need inspection reports for elevators, LPG storage facilities, and certificates from the labor inspection department concerning risk assessments. They must also submit a copy of the first page of their existing building permit to ensure compliance for operations by the end of August 2026.
The final requirement is to submit an application to the competent authority (EOA) for the legalization of any building irregularities. Hoteliers will need to provide proof of payment to the authority and an affidavit from the project architect detailing any unlicensed building alterations.
The Ultimatum
Once the required documents are submitted, a special operating badge will be issued by the Ministry of Tourism, valid until June 30, 2027. This date effectively serves as an ultimatum for unlicensed hotels, as after July 1, 2027, no hotel will be permitted to operate without an official operating license. The ministry will then issue final orders to suspend the operations of any businesses that fail to secure their license.
The government has made it clear that there will be no extensions or exceptions, as this issue has been an ongoing problem with significant negative consequences for Cyprus' tourism industry. During consultations with stakeholders, it was emphasized that the milestones set out in the framework cannot be extended.
Licensing Challenges
One of the main obstacles facing hotels is the difficulty in obtaining the necessary planning permissions from the relevant authorities. Large hotels, in particular, are encountering significant issues with their permits. As a result, some units may ultimately be excluded from the licensing process.
The Numbers
Currently, only 15% of hotels and tourist accommodations are licensed. This is an improvement from March 2023 when the figure was just 5.5%. Once approved by the Cabinet, the new framework will be discussed by the Parliamentary Committee on Energy, Trade, Industry, and Tourism. Stakeholders have warned that if the European Union discovers that most of Cyprus’ hotels remain unlicensed, the country could face serious issues.
*This article was translated and summarized from its Greek original
