Cyprus’ Audit Office has released a special report highlighting serious weaknesses in the licensing of hotel and tourism accommodation facilities, inspection systems and the management of subsidy schemes.
The tourism licensing report outlines concerns over compliance, oversight and the effectiveness of procedures within the Deputy Ministry of Tourism.
More than half operating without full licences
According to the findings, of the 728 hotels and tourism accommodation units registered as of 27 April 2026, only 168 establishments, or 23%, hold a full operating licence.
Another 158 properties, representing 22%, operate under temporary licences, while 402 units, accounting for 55%, continue operating without a licence or any temporary arrangement.
The report notes that the Famagusta district has the highest number of tourism accommodation units but the lowest rate of full licensing. Only 24 out of 241 registered properties have obtained full licences.
Unregistered properties identified online
The Audit Office also carried out a sample review of 150 listings on Booking.com and Airbnb in Famagusta district.
The investigation identified 23 properties that were not found in either the Tourism Accommodation Register or the Self-Catering Accommodation Register.
Among those cases, 14 listings did not display any registration licence number, while the remaining nine included numbers that did not match official records.
The report states that these findings suggest that some accommodation providers may be operating outside the required licensing and supervision framework.
Safety and competition concerns raised
The tourism licensing report warns that unlicensed or temporarily licensed accommodation could increase risks for visitors and employees while affecting service quality and potentially damaging Cyprus’ tourism reputation.
The Audit Office also highlighted concerns over potential loss of public revenue and unfair competition affecting businesses that comply with legal requirements.
Criticism over repeated extensions
The Auditor General noted that legislation introduced in 2019 allowed a five-year compliance period, but by the end of that period only 5% of businesses had obtained full licences.
Authorities later extended deadlines until 2027, although the report states that limited progress has been achieved and more than half of businesses had not even applied for temporary licences.
The report further noted a lack of meaningful enforcement measures or penalties, warning that this may encourage continued non-compliance.
Recommendations for stronger oversight
The Audit Office called on the Deputy Ministry of Tourism to improve implementation of legislation, strengthen oversight mechanisms and simplify licensing procedures.
It also recommended introducing stronger accountability systems to improve safety standards and reinforce confidence in Cyprus’ tourism sector.
Also read: Wellness economy reshapes food, tourism, and technology
For more videos and updates, check out our YouTube channel
