Cyprus Mail 24 March 2025
 |
| The new licensing requirements are proving especially complex (Depositphotos) |
Pasyxe urges government action on hotel licensing delays ahead of Easter
Only 13.5 per cent of tourist units in Cyprus have secured the necessary permits ahead of the summer season, sparking growing concern over delays in the licensing process. With the April 20, 2025 deadline fast approaching – coinciding this year with Orthodox and Catholic Easter – hoteliers warn of potential disruptions to bookings and the wider tourism industry. Industry leaders are calling for swift solutions to address the bureaucratic backlog.
Christos Angelides, general director of the Cyprus hotel association (Pasyxe), spoke to Cyprus Mail about the challenges faced by the sector. He explained that the issue is rooted in the ongoing legislative process following the amendment of the law that led to the creation of the deputy ministry of tourism.
“After the previous law was amended, leading to the establishment of the deputy ministry of tourism, hotels were granted a grace period. However, this may have unintentionally created a false sense of postponement,” Angelides explained.
The new licensing requirements are proving especially complex. Hoteliers are now required to liaise with multiple government departments to secure the necessary documentation, leading to significant delays. Pasyxe hopes for clearer guidelines and sufficient time to meet all requirements.
“We hope that the new legislation will provide clearer guidelines and allow sufficient time for submission of the required documents. Our goal is to ensure that no hotel is left without an operating licence,” he said.
Angelides also pointed out the structural inefficiencies within the licensing system.
“There is support from the relevant authorities, but the fragmentation of power and overlapping procedures make the process highly complex and time-consuming,” he said.
To improve efficiency, Angelides proposed a “one-stop-shop” within the deputy ministry of tourism that would centralise the licensing process. He argued that a dedicated licensing authority would streamline procedures, making it easier for hoteliers to manage their applications.
“This would allow hoteliers to handle all their licensing matters in one place, making procedures more effective,” he suggested.
As discussions continue over the final version of the licensing bill, Pasyxe remains actively engaged with authorities to ensure the tourism industry’s interests are protected.
Government’s response to licensing delays
The interior ministry said that property owners’ failure to submit applications or the existence of unauthorised extensions or modifications to properties have contributed to the delays.
“The lack of licensing is mainly due to the failure of property owners to submit applications, particularly in cases where unauthorised extensions or modifications have been made to approved developments. These cannot always be legalised,” the interior ministry explained.
The ministry said the town planning and housing department, responsible for large-scale tourist developments, is working to process applications efficiently.
“We aim to study planning applications in a timely manner, provided they are complete and comply with the relevant legal provisions,” the interior ministry assured.
To help resolve issues of unauthorised modifications, the government has introduced the urban planning incentives scheme for development recovery. This scheme allows for an additional 20 per cent building coefficient to address irregularities in licensed tourist developments outside designated tourist zones.
Speaking to Cyprus Mail, the deputy ministry of tourism outlined the key challenges in the licensing process. Hotels and tourist accommodations must submit several essential documents, including a health certificate, swimming pool hygiene certificate, fire safety report and elevator inspection report. However, many establishments face difficulties due to unauthorised building modifications, which complicate compliance with safety and regulatory standards.
“Many establishments have carried out illegal structural alterations, making it difficult for relevant authorities to issue the necessary certificates,” the deputy ministry said.
“For instance, if a swimming pool has been built without a legal building permit, health and electromechanical services cannot issue the required safety documents, thus halting the licensing process.”
Fire safety is another major concern, as unauthorised structural changes often block emergency exits and fire protection measures, preventing the Fire Service from issuing the necessary safety certification.
Urgent push for licensing ahead of Easter
As the clock ticks towards Easter, the government is looking for ways to accelerate the licensing process without compromising safety. A legislative proposal has been submitted to the House of Representatives that would offer temporary extensions to hotels unable to secure full licences in time. The proposal aims to allow businesses to continue operating while they address urban planning violations.
Hotels that cannot secure full licensing by September 30, 2025, will be granted permission to operate until August 31, 2026. However, by the September deadline, they must submit all health and safety-related certificates. The building permit issue will be addressed under a separate regulatory arrangement.
“Our priority remains ensuring safety and quality for both visitors and employees,” the ministry stressed.
“This temporary solution balances the need for strict regulations with the reality that resolving urban planning issues takes time.”
While the proposed bill offers short-term relief, hoteliers are calling for a long-term strategy to address the ongoing bureaucratic hurdles that continue to delay licensing. Since the scheme’s introduction in 2013, over 900 applications have been approved nationwide. However, many businesses are still struggling with delays in the regulatory process.
