A draft bill proposed by the Deputy Ministry of Tourism has become the focus of strong disagreement within Cyprus’ hospitality sector. The legislation, which introduces a revised regulatory framework for the operation of restaurants and entertainment venues, was presented this week before the House Commerce Committee.
At the heart of the dispute is the categorisation of venues into separate types: 'dining' and 'entertainment' establishments, with different operating hours for each. Industry representatives argue this change will disrupt business models and unfairly favour certain types of venues over others.
Following backlash, the bill has been sent back to the Deputy Ministry for further review.
Proposed operating hours
The proposed law sets out the following opening hours:
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Dining venues: 06:00am–01:30am
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Entertainment venues (bars, beer halls): 08:00am–02:30am
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Event venues (receptions/banquet halls):
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Open-air: 08:00am–01:30am
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Indoor: 08:00am–05:00am
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Dance/music clubs:
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Open-air: 08:00pm–01:30am
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Indoor: 08:00pm–05:00am
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Cabarets: 08:00pm–05:30am
Industry concerns
Phanos Leventis, Secretary General of the Association of Leisure Venue Owners, voiced strong opposition to the bill, particularly regarding the split between dining and entertainment venues.
“This bill effectively bans entertainment in tavernas, driving customers to nightclubs,” he said. “This will be devastating for traditional leisure venues under the ‘dining’ category. Jobs will be lost, and so will small businesses.”
Leventis accused the government of interfering with Cypriot cultural traditions, stating that the bill institutionalises a shift towards Cyprus becoming a “party destination”. He also alleged that small, family-run businesses are being marginalised in favour of large, commercial venues such as nightclubs and banquet halls.
“Overnight, the Deputy Ministry of Tourism reclassified banquet halls as nightclubs,” he said, calling the move unconstitutional. He urged the President of the Republic to rectify what he described as “a mistake that threatens 3,000 businesses.”
A step toward market order?
In contrast, Nikos Vasiliou, President of the Federation of Dining and Entertainment Establishments, supported the initiative, arguing that the bill introduces much-needed order to a chaotic marketplace.
“Right now, everyone stays open until 03:30, with no consistency. This creates unfair competition and noise pollution in residential areas,” he said.
According to Vasiliou, some resistance stems from venues losing the “easy profits” of operating as hybrid spaces without proper classification or oversight.
Allegations of favouritism
DISY MP Kyriakos Hadjiyiannis, who chairs the House Commerce Committee, criticised the bill as unbalanced and favouring certain business interests.
“It’s a one-sided approach that disrupts market fairness,” he said, describing the bill as a “blatant intervention.” He acknowledged that, while consultation was claimed, the draft law introduces unnecessary divisions.
The Committee will prioritise discussions on the bill, seeking a path forward that addresses the concerns of all stakeholders. Hadjiyiannis also expressed disappointment that Parliament is being forced to assume responsibilities that should lie with the Executive.
Objectives of the bill
According to the accompanying explanatory report, the draft law aims to modernise and streamline the regulatory framework for dining and entertainment venues in Cyprus, enhancing competitiveness and public safety while reducing bureaucratic burden.
Key goals include:
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Eliminating outdated or burdensome infrastructure criteria
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Replacing the old classification system with a simplified two-tier model (dining vs. entertainment)
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Abolishing the requirement to submit menus for official approval
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Enhancing health and safety protections for both customers and staff
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Introducing differentiated operating hours by venue type to help reduce noise disturbances
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Allowing local authorities limited discretion (up to 1 hour) to adjust operating hours
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Providing for administrative fines and court-issued closure orders for non-compliance