More Than Half of Cyprus Hotels Operate Without a License
Cyprus is facing a serious challenge in its tourism sector. According to a special report published by the Audit Office on July 2, more than half of the country's hotels and other accommodation establishments continue to operate without an official license.
As of April 27, 2026, the official register of the Deputy Ministry of Tourism included 728 hotels and accommodation establishments. Only 168 properties had obtained a full operating license, representing just 23% of the total. Another 158 establishments (22%) continue to operate under temporary permits while they work to meet all legal requirements for permanent licensing.
The most concerning figure relates to properties operating without any authorization at all. There are 402 such establishments, accounting for 55% of the entire market. According to the auditors, such a high percentage demonstrates the need to reform the licensing system and strengthen government oversight.
The Deputy Ministry of Tourism has reminded operators that the current legislation provides for a transitional period until December 31, 2026. During this period, hotels and other accommodation establishments may complete the licensing process, provided they possess the required certificates and comply with the applicable regulations.
However, the Audit Office believes that the current transitional framework is not sufficiently effective. The report notes the absence of clearly defined key performance indicators (KPIs), making it impossible to objectively assess the effectiveness of government programs or measure progress toward their intended goals.