In Cyprus, only 13.5% of tourist establishments have obtained the necessary licences before the start of the summer season.
This is a major concern for hoteliers, especially as the deadline of 20 April 2025, which coincides with Orthodox and Catholic Easter, approaches.
The Cyprus Hotel Association (Pasyxe) recently called on the island nation's authorities to speed up the approval process to avoid disruption to the hotel sector. Pasyxe CEO Christos Angelidis said the current bureaucratic procedures and changes in legislation were making the licensing process much more difficult.
He noted that hoteliers had recently been given a grace period to obtain all the necessary documents, but this had created a false sense of procrastination and many were now facing unexpected difficulties. The new licensing system requires liaison with various government departments, resulting in significant delays. Hoteliers are facing difficulties in obtaining key documents such as:
- Health certificates,
- pool hygiene certificates
- Fire safety reports,
- lift inspection reports.
Angelidis suggested the creation of a centralised body within the tourism ministry that would simplify licensing and allow hotels to obtain all the necessary documents in one place.
If we want to avoid chaos in the tourism industry, we need to act quickly and efficiently. A central licensing authority could speed up the process considerably," Angelidis said.
For its part, the interior ministry said the main reason for the delays was either a lack of applications from owners or unauthorised alterations to buildings that do not meet safety standards.
Unauthorised extensions or alterations to buildings cannot be legalised automatically, which complicates the approval process. The Urban Planning Department is working to speed up the processing of applications, but only if the documents meet all the requirements. To help owners, an urban planning incentive scheme has been introduced to allow a 20% increase in the permitted building area to address violations in licensed tourist complexes outside tourist areas.
To avoid disrupting the tourist season, the government has recently proposed a temporary extension of licences. A bill has been submitted to Parliament to allow hotels that have not had time to obtain full licences to operate until 31 August 2026. However, they will have until 30 September 2025 to submit all health and safety certificates.
While we recognise the importance of safety and quality, we also understand that the licensing process takes time. This temporary solution will help to balance the need for strict regulation with the stability of the tourism industry,' the department said.
While the proposed temporary measures will avoid short-term problems, hoteliers are calling for long-term reforms. More than 900 applications have been approved since the licensing system was introduced in 2013, but regulatory delays remain a major issue. The tourism sector is a key driver of the Cypriot economy, and its development requires a flexible and effective regulatory system. Pasyxe continues to engage with the authorities to protect the interests of hoteliers and the tourism industry. A final decision on the licensing reform is expected in the coming months. If the situation does not change, the 2025 tourist season could face serious difficulties, with a negative impact on the island's economy as a whole.