The Audit Office identifies significant delays in the implementation of projects related to the mooring areas of pleasure boats, with delays and non-payment of the annual fee. Problems that seem to have started from the first day of the decisions back in 1994, since although the strategy was adopted in it, significant legislative gaps seem to have been identified later.
The relevant special report of Hellas, published today, demonstrates serious weaknesses in the procedures for securing licenses for the management of yacht berths, but also in the imposition of the annual fee on the part of the beneficiaries, since according to the Audit, legislative regulation will be needed to resolve the problem.
They started wrong since 1994
First of all, we need to explain what the berths are, why they were created and since when the first problems appeared, since it seems that the issue with wrong procedures or delays had started decades ago and to this day it seems that it has not yet been resolved.
Specifically, in 1994, the then Cabinet decided on the strategy for the development of maritime tourism in Cyprus by defining a single navigation zone and siting marinas of different scales. The zone includes five large marinas (Larnaca, Limassol, Paphos, Ayia Napa and Paralimni), one medium-scale marina (St. Raphael) and small-scale marinas with limited services. However, for small-scale marinas, a legislative gap arose, which was finally corrected in 2007, with the regulation on the licensing and operation of yacht mooring areas, since the mooring areas, unlike marinas, are not official entry points into the Republic of Cyprus, have a smaller boat capacity and do not have residential developments.
Essentially, the development of small yacht moorings was significantly delayed, while the relevant strategy for maritime tourism had been adopted by the Council of Ministers as early as 1994 and the relevant law was passed in 2007.
The delay mainly concerned the need to amend the legislation on real estate, so that the embankments in the sea can be registered as state land and leased for the implementation of the projects.
This was followed by the decrees of 2015 and 2022, which defined the licensing criteria, while the responsibility for the promotion of the projects was transferred in 2019 to the Deputy Ministry of Tourism.
However, the process remains bureaucratic, since it requires the submission of studies, evaluation by a competent committee, publication of the application, approval by the Council of Ministers, securing planning and building permits and signing of a lease agreement for state land.
Although six marine areas were declared as berthing areas in the period 2018-2019, the implementation of the projects depends on the completion of all the above procedures and permits, something that seems to have not been done to date and at the same time another problem that needs legislative regulation is identified and concerns the payment of the annual fee.
Audit: Immediate legislative intervention is needed
The Audit Office finds that the significant delays, in addition to the non-implementation of the sites, also cause individual problems, since, as stated in its report, on the one hand the specific marine areas remain reserved for a long time, depriving the state of the ability to use them for other purposes of public interest and on the other hand the imposition of the annual fee and its payment by the economic operators who undertook the implementation of the project does not seem to be satisfied to the extent it should. The Service even calls on the state to proceed with a legislative regulation on the issue.
Specifically, as the Audit Office states in its report, the long delays in the licensing and implementation of berthing areas result in public sea areas remaining reserved for years, without being used for other purposes of public interest. At the same time, the beneficiaries of the licenses may obtain a financial benefit, without paying an annual fee before the start of the operation of the projects. The Legal Service considered that the imposition of a fee at this stage could be considered unduly burdensome or even unconstitutional, thus requiring legislation for a reduced fee during the licensing period. However, such a bill has not yet been promoted. The Audit Office also suggests clear consequences for unjustified delays, including the possibility of revoking permits or renouncing premises when beneficiaries fail to meet their obligations and schedules.
In particular, out of the six sites declared in the period 2018-2019, three applicants never paid the required fees and did not obtain a management license. In another case, the fee was paid only for two years, while in the two remaining cases the payment was made once, so that the licenses could be issued and transferred to other economic operators. The Audit Office points out that these transfers demonstrate that licenses can acquire economic value, even though the projects have not yet been activated.
It should be noted that the Deputy Ministry of Tourism, in response to the Audit, stated that the draft bill was completed in November 2025 and transmitted in January 2026, but consultation and legislative review were pending. He also adds that the delays are also related to the difficulties of securing individual permits and specialized studies, such as environmental, geological and coastal engineering.
Where are the berths located?
The six sites selected for yacht mooring are located in the following areas, by the following economic operators for their implementation:
1/ Muskita Holdings Ltd — Alaminos, Larnaca
2/ Leptos Calypso Hotels Public Ltd — Pegeia, Paphos
3/ Venus Rock Estates Ltd — Ha Potami, Kouklia, Paphos
4/ The Sunset Boulevard Tourist & Estate Company Ltd / Actinolite Ltd — Pachyammos, Kato Paphos
5/ Alpha Panareti Public Ltd / Agi-Cypre Property 16 Ltd — Softades, Kiti, Larnaca
6/ M. Afxentiou & A. Stylianou Developers Ltd — Softades, Kitty, Larnaca
