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Unlicensed tourist accommodation constitutes a major “headache” for Cyprus and its tourism product. As the findings of the Audit Office also demonstrate, such accommodation accounts for a significant share of the market, putting both foreign visitors and local tourists at risk.
Specifically, in its latest annual report concerning the Deputy Ministry of Tourism, the Audit Office found that the majority of registered tourist accommodation establishments did not have an operating licence.
This is a fact that should not only concern the competent authorities, but should also have prompted an immediate solution, given that a significant part of the Cypriot economy relies on services, and particularly on tourism.
This is especially concerning given that the 2019 Law on the Regulation of the Establishment and Operation of Hotels and Tourist Accommodation Establishments is already in force, yet, as it appears, its provisions are not being fully complied with.
What the figures show
According to data from the Audit Office, out of 728 hotels and tourist accommodation establishments registered with the Deputy Ministry of Tourism as of 27 April 2026, only 168 of them — approximately 23% — had applied for and obtained an operating licence.
At the same time, 158 accommodation establishments — approximately 22% — are operating with only a temporary operating licence. The reason for the temporary nature of these licences highlights the seriousness of the issue.
Specifically, these 158 establishments with temporary licences had not met all the operating requirements and, as of April 2026, had been unable to comply with their obligations in order to obtain full licensing.
As the above figures demonstrate, in simple mathematical terms, approximately 55%, or the majority of hotels and tourist accommodation establishments — a total of 402 tourism businesses — continue to operate and conduct business in Cyprus’s most important economic sector without an operating licence.
It is worth noting that unlicensed hotels and tourist accommodation establishments are found in all districts of Cyprus. Even more troubling is the fact that businesses operating without a licence constitute the majority in every single district, without exception.
According to the figures:
In Nicosia, there are 30 licensed tourist accommodation establishments and hotels, 4 with temporary licences, and 48 without a licence.
In Limassol, there are 44 licensed tourist accommodation establishments, 22 with temporary licences, and 49 without a licence.
In Larnaca, 32 licensed tourist accommodation establishments are operating, along with 13 establishments with temporary licences. The number of unlicensed tourist accommodation establishments is particularly high, reaching 74.
In Paphos, there are 38 licensed tourist accommodation establishments, 31 with temporary licences, and 102 without any licence from the competent authorities.
Finally, in Famagusta, there are 24 licensed tourist accommodation establishments, 88 with temporary licences, and 129 without a licence.
Of particular importance is the fact that, following an inspection by the Audit Office of 150 listings on the Booking.com and Airbnb platforms, 23 cases of tourist accommodation establishments were identified that were not registered either in the Tourist Accommodation Register or in the Self-Catering Accommodation Register.
In 14 of these cases, the tourist accommodation listings on the popular platforms did not display a registration licence number. In the remaining 9 cases, a registration licence number may have been displayed, but it could not be located in the official Registers.
All these findings should raise serious concerns for the competent Deputy Ministry and the state authorities. If the majority of tourist accommodation establishments do not hold an operating licence, this means that the state’s supervisory mechanism is unable to effectively inspect and monitor them, creating a major problem for the Cypriot tourism market.
Furthermore, the tourists themselves — whether foreign visitors or local residents — are placed at risk when staying in hotels or tourist accommodation establishments for which an operating licence has not been issued, presumably because they have not met all the necessary requirements.
Beyond the visitors themselves, serious health and safety risks also exist for the staff working in unlicensed hotels and accommodation establishments.
At the same time, the continued operation of these tourist accommodation establishments also puts Cyprus’s tourism product itself at risk, damaging its reputation in terms of the tourism services provided and their quality.