Hundreds of Cypriot hotels operating without final licences could be granted a one-year “special temporary permit” under a new legislative proposal designed to prevent the immediate closure of non-compliant tourist units. Kyriakos Hadjiyiannis, DISY MP and Chairman of the House Energy Committee, tabled the amendment on Thursday.
The proposal seeks to extend the deadline for submitting essential documentation until November 2026, following the expiry of the previous grace period two months ago.
The legislation aims to create a “special status of legality” for establishments currently struggling to secure final certification due to bureaucratic delays or minor building irregularities. Under the proposed terms, hotels would be allowed to continue operations only if they meet stringent fire safety standards and comply with broader national laws.
Hadjiyiannis described the measure as the only “realistic choice” between the immediate cessation of operations for unlicensed units and the perpetuation of the current unregulated status quo. The move has received preliminary backing from hotelier associations and opposition parties, provided that the rigorous requirements for final licensing are not diluted.
The licensing bottleneck is attributed to a complex web of requirements involving multiple government agencies, including the District Local Government Organisations (EOA), the Fire Service, and the Health Ministry. Currently, a final licence requires a vast array of certificates ranging from pool safety and liquor permits to comprehensive fire protection plans. In some instances, delays are caused by unauthorised structural interventions that require retrospective approval.
By granting a temporary reprieve, lawmakers hope to provide owners with a clear “exit route” to regularise their obligations without disrupting the broader tourism industry, which remains a cornerstone of the national economy.
While the immediate focus is on the one-year extension, the House Energy Committee plans to initiate a broader discussion on simplifying the “chaotic” licensing framework.
Hadjiyiannis noted that the practice of granting successive annual extensions has failed to solve the underlying problem. Future reforms are expected to focus on streamlining the involvement of various authorities to prevent recurring delays, without compromising safety or public health standards.
For now, the focus remains on the November 2026 deadline, which is intended to be a final window for the industry to achieve full legal compliance.
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