Audit office report highlights licensing issues in Cyprus tourism sector

A special report by the Audit Office of Cyprus, released in July 2026, reveals that only 23 per cent of hotels and tourist accommodations currently hold a full operating licence. The report criticizes the Deputy Ministry of Tourism for ineffective supervision, noting that 55 per cent of units operate without full legitimacy and 22 per cent use temporary permits. Authorities specifically identified regulatory failures in the Famagusta district, where only 9.9 per cent of establishments are fully licensed. The Audit Office also highlighted a significant lack of coordination, citing a case where a building in Germasogeia, which had been declared dangerous in March 2026, continued to be rented out via online platforms until its collapse. The Deputy Ministry of Tourism acknowledged the long-standing nature of the problem, citing a 30-year backlog exacerbated by urban planning incentives in 2013. The Ministry noted that new legislative efforts introduced in 2023, which extended compliance deadlines to December 31, 2025, have improved the figures, raising the number of fully licensed units from 6 per cent in April 2023 to 23 per cent currently. However, the Audit Office maintains that over 50 per cent of tourist units have never submitted a licensing application, calling into question the overall effectiveness of current enforcement mechanisms.