Filenews 17 February 2025 - by Angelos Angelodimou
Under the microscope of the Parliament will be found self-catering accommodation or more commonly known Airbnb-type accommodation. Specifically, on Tuesday, the competent Committee on Energy, Commerce, Industry and Tourism will examine the implementation of the legislation regulating the operation of self-catering accommodation. This is an ex officio examination of the issue, as it was considered that it is necessary to examine whether the legislative framework voted about five years ago (early 2020) to regulate this sector is operational, whether problems arise, whether there is interest in registering these accommodations in the relevant Register that has been created and various others.
25 guests
As it turns out, the competent parliamentary committee intends to examine all aspects related to this issue and will not be satisfied with tourism alone. This conclusion is also drawn by the stakeholders invited to attend the meeting of the Committee. No less than 25 guests have been invited to attend tomorrow's session and it is likely that there will be more sessions, as it will be difficult for all those present to express their views on the subject and draw meaningful conclusions. Indicatively, it is noted that among the guests will be the Deputy Minister of Tourism, representatives of the Department of Taxation, the Department of Town Planning and the Department of Lands and Surveys, the Audit Office, the President of the Commission for the Protection of Competition, representatives of ETEK, CCCI and OEB, hotel associations, consumer associations and of course the directly interested Association of Self-Catering Tourism Accommodation (S.A.T.K.).
Airbnb CEO's plans
Meanwhile, the platform's CEO Brian Chesky revealed his vision for Airbnb, saying he wants to make it the travel company Amazon. That is, a single store that will concern everything related to travel. Speaking earlier this month at the company's earnings release, Airbnb executives said the company plans to invest $200 million to $250 million to launch new businesses and services on the app starting in May. Specifically, Cesky said the platform would "expand beyond short-term leases." "We want the Airbnb app to become something similar to Amazon, to be a place to visit for all your travel and living needs," he said.
Hoteliers' reactions
It should be noted here that hoteliers react strongly to the way in which this industry is developing, referring to unfair competition and the need for a stricter legislative framework regulating self-catering accommodation. Indicatively, speaking a few days ago before the Annual General Assembly of the members of the ACTE, the president of the Association Akis Vavlitis stated, among other things, on the issue: "The phenomenon of short-term leases came to the surface in such an intense and dynamic way that it exceeded the reflexes of institutional states. Relevant estimates refer to the operation in Cyprus of around 80 to 90 thousand beds, approximately the same as the legal hotel industry, of which only about 1/3 are registered as they should be in the register of the Deputy Ministry of Tourism.
The hotel industry took 50 years, from 1974 to 2024, to create its current stock of about 90,000 licensed hotel beds, while on the other hand, short-term rental, as an economic business, took less than 10 years to have approximately the same beds. This parallel and uncontrolled way of activity in the hospitality industry leads to the complete deregulation of residential rents, exacerbating the crisis in the housing market, burdening the quality of life of residents and driving them out of city centers and tourist areas due to high rents.
The state, in terms of equality towards the hotel industry, must immediately establish a strict regulatory framework for their operation, with safety standards, but also an effective mechanism for compliance with the regulations that will be established", he noted.
