A majority of Cyprus hotels and hundreds of catering establishments operated without the necessary licenses in 2018, according to auditor general Odysseas Michaelides.
Some 76% of Cyprus hotels and 38% of leisure enterprises were operating without a license, which poses risks to the safety and health of customers and employees, said the Auditor General in a report commissioned by the Deputy Ministry of Tourism.
Michaelides told the House Watchdog Committee that at the end of 2018 there were 243 hotels and 3600 catering establishments.
Of these, only 59 hotels and 2234 catering establishments — that is 24% and 62% respectively – had renewed their operating license.
The remainder (76% and 38% respectively) failed to do so as they did not satisfy certain provisions of the law.
Michaelides said the main reason behind hotels failing to renew their permits, were the extensions and other structural changes made by hoteliers to their premises without first securing the necessary planning and building permits.
Only four of the 26 five-star hotels and 19 out of 58 four-star hotels operating in February this year, had valid operating permits. Michaelides said that 19 five-star and 43 four-star hotels have been operating without a permit since 2009.
If the authorities chose to take legal action against the owners, this would mean court injunctions suspending operation of the businesses, leading to thousands of job losses, he noted.
Acting permanent secretary of the Deputy Tourism Ministry Theofanis Tryfonos said the new law on licensing and classification of hotels and tourist accommodation provided for a five-year grace period for them to acquire a permit.
He added that the new law offers incentives to hoteliers to issue the relative licenses, as there is a variety of categories which they can register their hotels under.
“It is a golden opportunity for hoteliers to benefit from the new law’s provisions,” said Tryfonos, urging them not to wait until the grace period expires.
Tryfonos said officers are carrying out regular health and safety inspections at hotels, exhibiting zero tolerance.
DISY MP Annita Demetriou, expressed concern over the fact that “most hotels are not licensed implies specific provisions have not been met".
The goal, she noted, is not to impose sanctions, but to respond to what needs to be done in order for hotels to operate lawfully with a view to consumer protection.
Green MP George Perdikis said that the lack of control over hotels damages the reputation of Cypriot tourism. He said giving them a grace period "was a mistake on behalf of parliament".
