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12° Nicosia,
20 February, 2025
 
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One in three short-term rental accommodations is illegal

MPs consider restrictions as unregistered rentals surge

Newsroom

Approximately one-third of self-catering accommodations listed on platforms like Airbnb are operating illegally, as they remain unregistered with the Ministry of Tourism. Data presented to the Parliamentary Committee on Commerce reveals that of the 8,248 registered properties, many remain unlisted, with only 14 reports filed against illegal listings by the Ministry.

Despite efforts to encourage registrations, with the number of legal properties growing from 2,343 in late 2022 to 8,248 by 2025, the Ministry faces challenges due to inadequate legal tools for enforcing compliance. Additionally, pending applications remain an issue, with over 1,200 properties still awaiting registration due to incomplete information.

The Ministry is considering restrictions on the number of accommodations a person can register and is working on a bill to address gaps in the current regulatory framework. However, industry representatives, including the Self-Catering Accommodations Association, warn that the influx of unregistered properties during peak seasons adds to unfair competition for legitimate operators and contributes to tax evasion.

Concerns were also raised about consumer protection, with reports of misleading listings and non-existent properties being rented. The Consumers’ Association has received numerous complaints about fraudulent practices.

While the Ministry remains optimistic about the growth of tourism in 2025, with expected record numbers in arrivals and revenues, there are calls for stricter oversight and investigations into illegal rentals. The Parliamentary Committee Chairman urged the Audit Service to probe these issues, noting that the lack of inspections has contributed to the ongoing problem

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