Filenews 20 September 2025 - by Angelos Nikolaou
With the aim of streamlining and unifying fragmented legislation, the Council of Ministers forwarded to the House of Representatives the bill "The Establishment and Operation of Catering and Entertainment Establishments Law of 2025". The bill brings sweeping changes to the regulatory framework of all places that provide catering and entertainment services and the first reactions from entrepreneurs in the sector are already being recorded. The new framework introduces stricter restrictions for catering, while favouring closed-type entertainment establishments, giving precedence to businesses with larger infrastructure.
The reactions are mainly focused on the reduction of opening hours, especially in the evening hours, which, according to businessmen, is expected to have an economic impact on tourism and the local market, especially during the summer months.
The bill was approved by the Council of Ministers on September 3, 2025 and replaces the existing "Leisure Centers Law". The aim is to modernize the institutional framework, reduce bureaucracy and enhance the quality of services. It is to be discussed in the parliamentary Committee on Commerce, where it will take its final form after any amendments that may be made and will largely determine the changes in the catering and entertainment sectors.
The new framework provides: ● Simplification of licensing procedures and abolition of the categorization of premises based on the items offered. ● Abolition of anachronistic obligations, such as the approval of price lists. ● Redefinition of hours according to the type of premises. ● Increase in fines for violations and provisions for suspension of operation in cases of recurrence.
COMPARATIVE TABLE OF OPENING HOURS
Reactions of P.A.S.I.K.A. – "Parody bill"
However, the legislative proposal has provoked strong reactions, mainly from the Pancyprian Association of Leisure Center Owners (PASIKA), which speaks of discriminatory treatment and downgrading of the role of catering.
P.A.S.I.K.A. characterizes the bill as "sketchy and unconstitutional", complaining that it serves specific economic interests at the expense of small and medium-sized enterprises.
It points out in particular that the reduction of opening hours for catering businesses (taverns, restaurants, pubs) is a blow to their viability, especially for small businesses that cannot operate as music and dance venues, banquet halls or nightclubs. Furthermore, he notes that the bill unilaterally favours entertainment venues with very slow hours, while catering will be synchronized to more limited hours, which creates unfair competition.
They predict a reduction in incomes, staff layoffs, and even the closure of small businesses that will not be able to operate profitably under the new restrictions.
There is also a reaction to the renaming of the law, from "Recreation Centers" to "Dining and Entertainment Venues", considering that this changes the character of the institutional framework and downgrades the cultural and social role of catering as part of the Cypriot tradition.
P.A.S.I.K.A. It also denounces possible constitutional violations (such as freedom of occupation, equal treatment of businesses, the principle of proportionality) and speaks of an "over-concentration of powers" that can lead to arbitrariness.
Main points of disagreement
Opening hours: The Association reacts to the reduction of opening hours for taverns, restaurants and beer gardens, in contrast to the extension of operation until 05:00 for music and dance venues and banquet halls, which they consider unfair competition.
Abolition of the term "leisure": It is considered to degrade the cultural identity of Cypriot catering.
Economic consequences: They warn of small business closures, job losses, and a decline in government revenues.
Constitutional issues: They raise concerns about violation of fundamental rights and over-concentration of powers in the Deputy Ministry's Director-General.
Specific effects
Limitation of live music and DJs due to schedules. Inability to organize receptions in small businesses. Loss of competitiveness against spaces that will operate until the early hours of the morning. Alteration of the local culture by transforming Cyprus into a "one-dimensional party destination".
P.A.S.I.K.A. calls on the government to dialogue, proposing: Retention of the term "recreation". Uniform opening hours for all. Review of fines and sanctions. Ensuring constitutional legality.
The government's position: Modernize, simplify and support entrepreneurship
The Deputy Ministry of Tourism emphasizes that the new framework aims at flexibility, simplification of procedures and upgrading of services, with a clear separation of businesses into two categories: Restaurants, taverns, cafes, grills, pizzerias, snack bars, souvlaki joints.
Entertainment Venues: Beer/bar, banquet halls/banquet halls, music and dance clubs, discotheques, cabarets.
According to the Deputy Ministry of Tourism, the aim of the bill is to reduce the administrative burden, strengthen entrepreneurship and improve the quality of services. The new law simplifies the procedures and criteria for the establishment and licensing of catering and entertainment venues. According to the Deputy Ministry, anachronistic regulations and obligations are abolished, such as categorization based on the items offered, the approval of price lists and strict technical specifications. At the same time, the opening hours are redefined by type and category of premises.
Stricter provisions for infringements are also introduced, including out-of-court fines and the possibility of suspension in case of repeated infringements.
The new legislative framework aims to reduce the administrative burden, strengthen entrepreneurship and improve the quality of services provided to the public.
A three-year operating license is established, with the possibility of renewal, provided that all requirements (urban planning, sanitary, electrical, etc.) are met. Exceptions are provided for places such as take-away, school canteens, traditional cafes, etc.
Suggested opening hours:
Dining: 06:00 – 01:30
Entertainment – Pubs / Bars: 08:00 – 02:30
Banquet Halls (Indoor Type): 08:00 – 05:00
Banquet Halls (Open Type): 08:00 – 01:30
Music and Dance Centers (Indoor Type): 20:00 – 05:00
Music and Dance (Open Type): 20:00 – 01:30
Discotheques / Cabaret: 20:00 – 05:00
Municipal or Community Councils will be able to approve an extension or reduction of working hours by one hour for a period of up to six months in each calendar year, subject to conditions.
Main Points of Comparison
1. Focus: From a maximum of 03:30 to a fixed 01:30. Reduction up to 2 hours.
2. Bars/Pubs: Definition of a special category. Today they are open until 03:30. Operation until 02:30.
3. Music and dance: Today they operate until 02:00-03:00. Significant extension of operation until 05:00. Extension of working hours up to 2 hours more.
4. Banquet halls: For the first time, hours are set by separation by type of premises. It is established for closed type until 05:00 and open until 01:30.
