Filenews 7 March 2023
STEK is following with great concern the developments around the issue of the registration of Self-Service Accommodation in the relevant registry of the Deputy Ministry of Tourism and recalls, with today's announcement, that the inadequate regulation of the operation of these accommodations has already created serious problems.
Regarding the cases of accommodation that must be registered in the registry but still lack relevant licenses, the FTC considers that they should be registered immediately and given a grace period (up to one year) until they obtain all the necessary permits. In particular, there could be a relevant footnote on their licence until they receive the pending approvals. In this way, the accommodations will be able to operate legally and at the same time the Tax Department and the other Authorities that grant relevant licenses for health and safety issues will be facilitated.
Relevant estimates refer to the uncontrolled operation of about 80,000 - 100,000 beds (about as many as the legal hotel industry has) for short-term leases in Cyprus, of which very few were registered in the relevant register until recently. The observance of all the appropriate safety provisions is of crucial importance as in the event of an unfortunate incident it is not just the accommodation that will be left exposed but the country itself as a tourist destination.
In addition, the FTC recalls the following recommendations in relation to the effective regulation of short-term leases:
1. The rental of property should be allowed only for a specific period of time, which should not exceed a specific period of time on an annual basis. Similar arrangements apply in other European countries.
2. In specific areas or even cities where residents find it difficult to find houses or apartments for long-term rental, local authorities should have the right to prohibit short-term rental of real estate.
3. To pay an overnight fee to the Local Government Authorities.
4. Carry out regular checks that safety and health regulations are being applied.
