Investors from all over the world are interested in doing business in Cyprus because of the country's low taxes, financial security, economic stability and rapid development. At the same time, the tourism sector is attracting the most interest. As the flow of tourists increases, so does the demand for holiday accommodation in Cyprus. As a result, fashionable hotels are being built all over the island. Incidentally, such properties often offer investors a return on their investment.
To date, Cyprus has a total of 36 five-star hotels, 71 four-star hotels, 81 three-star hotels, 46 two-star hotels, 23 one-star hotels and 5 hotels without stars.
In addition, Cyprus has hotel-type apartments and detached villas, as well as tourist villages. The total number of these establishments is 731, with a capacity of 93,939 beds.
Interestingly, the number of stars awarded to local hotels is influenced by the Cypriot authorities, who award them on the basis of 143 mandatory and optional criteria. At the same time, the cost of a hotel room is set independently by the management of each hotel. The hotel product in Cyprus is not standardised, but is designed according to the market segments that each hotel wishes to attract.
It is up to each country to determine the criteria for awarding stars to hotels. The law that regulates the licensing and classification of hotels and tourist accommodation facilities ensures, firstly, the safety and health of customers and employees of the hotel industry. Secondly, it ensures the minimum level of services and facilities provided through 143 mandatory and additional classification criteria,' said Marios Tsianakas, spokesman for the Ministry of Tourism.
According to Tsianakas, zero-star hotels are those that do not meet the minimum criteria. The new regulatory framework, which was adopted in 2019 and is still being implemented, will give the hotel industry more flexibility to tailor its product to the needs of the market it wants to attract.
Finally, on the issue of hotel quality control, he noted that once a hotel complex has been awarded stars, officials from his department are authorised to carry out annual compliance inspections. The inspections focus on infrastructure, cleanliness, appearance, furniture, equipment and the behaviour of hotel staff.