Around 350 hotels and tourist accommodation establishments risk closure because they are unlikely to obtain the fire safety certificate required by law to continue operating by 28 February 2027, even where they remain without an operating licence from the Deputy Ministry of Tourism.
In an effort to prevent such an outcome, a legislative proposal submitted by DISY, DIKO and ELAM will be discussed by parliament's Commerce Committee next Tuesday. The proposal seeks to extend the transitional period until February 2029.
At the same time, the proposal would grant a further extension until 31 December 2030 to hotel and tourist accommodation establishments that already hold a building permit and have previously secured an extension until 31 December 2028 for licensing purposes. The aim is to allow them sufficient time to obtain all permits and approvals required for an operating licence from the Deputy Ministry of Tourism.
According to the explanatory memorandum accompanying the bill, the additional two-year extension is considered necessary due to the objective difficulties businesses face in securing the required documents, certificates and approvals.
The proposal argues that lengthy procedures across various government departments have made compliance with current legal deadlines practically impossible.
According to Politis sources, the Deputy Ministry of Tourism also supports extending the deadlines.
Widespread planning irregularities
The delays are not linked only to slow administrative procedures.
Significant planning and building irregularities identified in hotels and tourist accommodation establishments have also complicated efforts to obtain the necessary licences, permits and certification.
Previous extension granted in April
Last April, parliament approved legislation proposed by the Deputy Ministry of Tourism that extended operating permits until 31 December 2028 for hundreds of hotels and tourist accommodation providers while they sought the approvals required for full licensing.
However, that arrangement applied only to establishments that already possessed a building permit.
Hotels and tourist accommodation providers without a building permit were instead given until 28 February 2027 to secure at least the fire safety certificate required for continued operation.
Warning of economic consequences
Asked whether the proposed legislation effectively prolongs illegality and grants favourable treatment to hotel operators that have failed to comply with the law, DISY and DIKO MPs argued that the hotel industry remains one of the most important pillars of the Cypriot economy.
They noted that the sector contributes approximately 15% of GDP, while supporting employment, tourism and a wide network of related industries, including restaurants, transport services and suppliers.
According to the MPs, the closure of more than 300 hotels and tourist accommodation establishments would have serious and potentially unpredictable consequences for tourism, visitor services and the wider economy.
They warned it could result in significant income losses, the disappearance of thousands of jobs and damage to broader business activity across the country.
