Thursday, July 16, 2026

LICENSING CHAOS IN AIRBNB AND HOTELS - CHANGES DEMANDED







LICENSING CHAOS IN AIRBNB AND HOTELS - CHANGES DEMANDED - Filenews 16/7 by Angelos Angelodimou


In the immediate future, the discussion regarding the regulation of the operation of self-catering accommodations (Airbnb type) is expected to culminate. The issue came to the surface again with the report of the Audit Office for the Deputy Ministry of Tourism, in which, among other things, it was done in the part of licensing, both airbnb and hotel and other tourist accommodation.

The findings of the Audit Office had raised serious concerns about the entire licensing process, while the possible risks that arose were recorded, on the occasion of the collapse of a building in Germasogeia on April 11, 2026, in which it was found that three self-service apartments were operating.
Yesterday, STEK, in a statement issued, referred extensively to this issue, on the occasion of the report of the Audit Office, stressing that it comes to confirm the long-standing concerns of the Association. He notes that the fact that accommodation continues to operate and advertise without the required permits, without substantial controls and without effective interconnection of the competent authorities, demonstrates that the current system cannot meet its mission. Subsequently, STEK emphasizes that the inadequate regulation of the sector does not only create conditions of unfair competition at the expense of the legal hotel industry. It also affects the housing market, makes it difficult for permanent residents to find affordable housing, creates problems for local communities, affects the quality of life in neighbourhoods and poses risks to the safety of visitors.


The suggestions

The association of tourism businesses lists seven suggestions, which, as it states, could be included in the bill prepared by the Deputy Ministry of Tourism, such as:

(1) Effective and systematic controls to detect and crack down on illegal accommodation operations.

(2) Effective enforcement mechanisms with dissuasive administrative and financial sanctions.

(3) Mandatory indication of the registration number on all electronic platforms and cooperation of the platforms with the competent authorities for the immediate withdrawal of illegal registrations.

(4) Setting a maximum short-term rental period per year, following the standards of many European countries.

(5) Possibility for local authorities to restrict or even prohibit short-term rentals in specific areas where there is a serious burden on the housing market, intense nuisance or disturbance of the quality of life and the common peace of the residents.

(6) Mandatory payment of an overnight fee.

(7) Implement uniform standards of safety, health and insurance coverage for all hospitality service providers.

What the Audit Office found

It is recalled that in its remarks, the Audit Office stated, among other things, that on 6.5.2026 8,464 licensed self-catering accommodation establishments were registered on a nationwide basis in the Register of Self-Catering Accommodation. Following a sample check, it is added, which was carried out on online booking platforms, indications emerged that a significant number of self-catering accommodations operate and advertise without being registered in the Register or with inaccurate licensing details, which does not allow their effective control and supervision. Also, a large number of accommodations could not be identified.

Of the twenty accommodations in the sample that could be identified, only six (30%) were registered in the Register and had a valid registration license. Of the rest, ten accommodations (50%) did not indicate a registration license number and did not appear to have been registered in the Registry, while in four cases (20%), although a registration license number was indicated, it did not agree with the data of the Registry, as it either did not correspond to a valid registration number or related to a different accommodation.

In its response, the Deputy Ministry of Tourism informed that a number of accommodations that advertise on online platforms are not registered in the Register of the Deputy Ministry or do not display a registration number. This, he adds, will be addressed by the implementation of European Regulation (EU) 2024/1028 of April 11, 2024, which entered into force in May 2024, with its relevant obligations applicable from May 20, 2026.

A problem with hotels as well

However, it is worth noting that in addition to self-catering accommodation, the Audit Office's report also recorded that only 23% of hotels and tourist accommodation were fully licensed while 22% had a temporary license. Characteristically, it was stated that on 27.4.2026, out of a total of 728 hotels and tourist accommodation, only 168 had secured an operating license based on the relevant legislation. This figure reflects a compliance rate of only 23%, while another 158 accommodations, about 22% of the total, operate under temporary arrangements as certain conditions are met. Therefore, the majority of hotels and tourist accommodation establishments (402 entities or 55%) continue to operate without an operating license or without any other temporary arrangement, which shows that the facilities and temporary arrangements adopted in recent years have not worked effectively either.