The House Commerce Committee is set to examine the need for stronger consumer protection and compensationmechanisms for travellers affected by travel agency bankruptcies or misleading package deals. The issue gained urgency after more than 200 complaints were filed against the Limassol-based travel agency Efi Strakottou Travel & Tours Ltd, which is now under official investigation.
On 26 September 2025, the Consumer Protection Service of the Ministry of Commerce announced it had launched an investigation into the company, warning the public not to make further payments. The agency said the operator appeared insolvent and might be unable to meet its contractual obligations under the law governing package travel services.
Affected customers who prepaid for services they never received were invited to submit written claims to the Association of Cyprus Travel and Tourist Agents (ACTTA) by 24 October, providing all supporting documentation to facilitate case management.
Allegations of negligent oversight
In a memorandum to Parliament dated 10 October 2025, the Cyprus Consumers Association reported that it had received 228 complaints against the same travel organiser since mid-September, involving a total of €103,000 in payments.
The association’s president, Marios Drousiotis, accused the authorities of negligent supervision and warned that legal action would be taken if all affected customers were not compensated in full. According to the Association, the agency’s guarantee fund is insufficient to cover the total amount owed to consumers.
Parliament will now discuss how best to safeguard consumers in cases where travel agencies collect payments but fail to deliver services - either due to insolvency or deliberate non-compliance.
Legislative framework under review
Currently, organised travel packages fall under the Package Travel and Linked Travel Arrangements Law of 2017, which grants consumers specific protections and rights. The Consumer Protection Service of the Ministry of Commerce serves as the competent authority for its implementation, while the ACTTA operates as the designated body managing financial guarantees issued by banks or other financial institutions, under the Service’s supervision.
As the number of complaints grows, lawmakers face pressure to determine whether the existing legal and oversight mechanisms are sufficient to protect travellers - or whether deeper reform is needed to restore confidence in Cyprus’s travel industry.