Audit report reveals widespread licensing failures in Cyprus tourism sector

Special Report EE-EY 20/2026 by the Audit Office of Cyprus highlights significant deficiencies in the oversight and licensing of the tourism sector by the Deputy Ministry of Tourism. As of April 27, 2026, only 23% of the 728 registered hotels and tourist accommodations held full operating licenses. Another 22% operated under temporary permits, while 55% functioned without any valid licensing or temporary arrangement. The Ammochostos district recorded the lowest compliance rate, with only 24 out of 241 accommodations fully licensed. A sample audit of 150 listings on Booking.com and Airbnb revealed 23 instances of illegal or unidentified properties, with 14 lacking license numbers and 9 providing invalid information. Auditor General Andreas Papakonstantinou criticized the persistent reliance on extensions since the 2019 legislation, noting that such inaction undermines fair competition and safety standards. The report calls for a revision of laws if they are deemed unenforceable rather than continuing the cycle of extensions, which are currently set to expire at the end of 2026.