Alpha News

Significant Increase in Hotel Licensing in Cyprus

Published February 17, 2026, 14:24

The Deputy Minister of Tourism, Kostas Koumis, informed the Parliamentary Committee on Energy, Trade, Industry and Tourism about the increase in licensed hotels in Cyprus. While the percentage of licensed hotels was only 5-6% in 2023, it has now reached 45% thanks to government initiatives. This increase is due to two procedures: the main licensing process covering 23% of hotels and a parallel process through a law amendment licensing an additional 22%. The problem of missing operating licenses has existed for two decades, worsened during the 2014-2018 period due to urban planning incentives, and was addressed early by the Christodoulides government, which began efforts in March 2023. The amended law was referred back to the parliament because it violated principles of equality, legality and freedom of contract. The government is open to a new extension for licensing to ensure the smooth operation of tourism. However, it is concerning that more than 50% of hotels have not applied for licensing, which may be due to expectations of a new grace period or an attempt to conceal illegalities. The state seeks to understand the reasons for non-compliance as the hotel industry contributes significantly to the economy. There is no intention of taking harsh measures, such as license revocation, as this would cause disruption to tourism, but consideration is being given to providing a new grace period, while also demanding accountability from hoteliers.