More than half of the hotels and tourist accommodation facilities in Cyprus operate without a business license, according to a special audit report published on July 2, 2026. The audit for 2023-2025 showed that the control of the tourism industry before the high season was ineffective.
How many hotels are licensed?
As of April 27, 2026, there were 728 hotels and accommodation facilities in the register of the Ministry of Tourism. Of these, only 168 facilities (23%) received a license to operate in accordance with the relevant law. Another 158 facilities (22%) are operating under a temporary license, as they were unable to meet the requirements for full-fledged licensing. The remaining 402 facilities — 55% — continue to operate without any permits at all.
The auditors separately checked the online booking platforms. With a random check of 150 ads on Booking.com and Airbnb in the Famagusta area, 23 objects — mostly villas and apartments — could not be found in any of the relevant registries. In 14 cases, the registration number was not specified at all, which violates the law.
What is the threat to tourists and the market?
The auditors note that unlicensed facilities pose risks to the safety and health of guests and staff, as well as damage the reputation of the Cypriot tourism product. At the same time, the state is losing revenue due to unpaid payments, and bona fide entrepreneurs who receive licenses on time, as noted in the report, find themselves in unfair competition.
Why was the collapsed house in Germasogeia included in the report?
Separately, the report examines the collapse of a building in Germasogeia on April 11, 2026, where three tourist apartments were located. Back in March, the Limassol District Administration declared the house dangerous and notified the owners, but this information did not reach the Ministry of Tourism. Because of this, the apartments remained in the official register and continued to be rented through online platforms right up to the collapse. According to the auditors, the reason is the lack of an established exchange of information between government services.
What is the responsibility of the sub-ministry?
The Deputy Minister of Tourism notes that the law gives hotels a transitional period until December 31, 2026, and facilities that have not completed licensing can temporarily operate if they have the necessary certificates. Regarding the house in Limassol, the agency said that the licenses were revoked immediately after receiving information about the incident.
The Audit Service, in turn, points to an insufficient transition policy and the lack of measurable goals and performance indicators (KPIs), which makes it almost impossible to assess the effectiveness of programs.
https://lenta.cy/na-kipre-bez-licenzii-rabotajut-bolshe-poloviny-otelej-otchjot-auditorskoj-sluzhby/
