Audit office report identifies delays and loss of revenue in marina projects

The Audit Office of Cyprus issued a special report (EE-EY 21/2026) regarding small-scale boat docking areas declared between 2018 and 2019. The report criticizes administrative inertia and delays in the development of six designated marine sites in Alaminos, Peyia, Ha Potami, Pachyammos, and Softades. Although these areas were reserved for development by private entities including Muskita Holdings, Leptos Calypso Hotels, and others, most projects remain stagnant. The Legal Service previously advised that charging annual management fees before the start of operations could be unconstitutional, yet the necessary legislative amendments have not been promoted. Consequently, public maritime areas remain occupied without proper utilization or regular payment of fees to the state. The Ministry of Tourism and the Ministry of Energy, Commerce, and Industry are the primary bodies overseen in this audit. The report highlights that investors benefit from the increased valuation of their properties while the state incurs a loss of expected public revenue.