The Cyprus Hotel Association (STEK) has expressed support for updating the regulatory framework governing short-term holiday rentals, advocating for balanced measures to ensure a level playing field across the island’s hospitality sector.
The association’s call for reform follows the publication of an Audit Office report, which highlighted inconsistencies in the licensing and oversight of both self-catering properties and traditional hotels. STEK noted that addressing these gaps represents a positive opportunity to enhance safety standards, protect the local housing market, and strengthen the overall sustainability of Cyprus’s tourism industry.
A Cooperative Approach to Short Term Rental Oversight
To help integrate short-term rentals smoothly into local communities, STEK has welcomed the Deputy Ministry of Tourism’s plan to review existing laws. The association has proposed several constructive updates to bring the local framework in line with practices already successful in other European nations:
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Consistent Safety and Quality: Applying uniform health, safety, and insurance guidelines to guarantee a reliable experience for all visitors.
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Targeted Local Flexibility: Granting local municipalities the authority to establish maximum annual letting limits or restrictions in areas experiencing high housing demand.
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Administrative Transparency: Making the display of registration numbers mandatory across all digital booking platforms to encourage compliance.
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Standard Contributions: Introducing a modest overnight levy for short-term rental guests, similar to standard hotel practices, to support municipal infrastructure.
STEK emphasizes that clear guidelines and mutual standards will foster a cooperative environment where both traditional hotels and independent hosts can thrive.
Audit Office Identifies Areas for Administrative Alignment
The recent review conducted by the Audit Office outlined structural areas where both the short-term rental and hotel sectors can work toward greater compliance.
1. Self-Catering Accommodation Registry
As of May 6, 2026, Cyprus had 8,464 officially registered self-catering holiday homes. However, a sample survey conducted by investigators revealed that several online listings operated with incomplete registration records or outdated licensing numbers.
The Deputy Ministry of Tourism is actively working to resolve these administrative discrepancies. Officials expect regulatory alignment to improve significantly with the implementation of EU Regulation 2024/1028, which establishes shared registration guidelines and went into effect on May 20, 2026.
2. Hotel Sector Compliance
The report also shed light on licensing timelines within the traditional hotel sector. Out of 728 registered hotels and tourist accommodations evaluated as of April 27, 2026:
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23% (168 properties) held full operating licenses under the current legislation.
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22% (158 properties) operated successfully under active temporary authorizations.
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55% (402 properties) were operating without fully completed paperwork or temporary permits, indicating a need to simplify the state’s licensing application process.
Collaborating Toward Sustainable Tourism
STEK has confirmed its intention to participate actively in the upcoming public consultation on the revised legislation. By focusing on clear, enforceable rules and balanced market growth, the association aims to support a modern framework that safeguards local neighborhoods, ensures guest safety, and maintains the excellent reputation of Cyprus’s tourism product.
Source: Stockwatch.com.cy