More than half of Cyprus‘ hotels and tourist accommodations are operating without a full license, according to a new report from the country’s Audit Office, exposing long-running regulatory shortcomings that could undermine confidence in the island’s tourism sector.
The report found that, as of April 27, only 168 of the 728 hotels and tourist accommodation establishments registered with the Deputy Ministry of Tourism held a full operating license. Another 158 properties were operating under temporary licenses because they had yet to meet all regulatory requirements. That leaves more than 400 establishments without either form of operating authorization. Licensed hotels have a total of over 32,000 rooms and nearly 64,000 beds according to the Deputy Minister of Tourism.
The findings raise concerns about visitor safety, regulatory compliance and the international reputation of Cyprus, where tourism remains one of the country’s most important economic drivers.
The Audit Office criticized the Deputy Ministry for failing to bring hotel operators into compliance with licensing rules despite years of transitional arrangements. It also identified weaknesses in the administration of grant programs intended to support the tourism sector.
Among the report’s findings were deficiencies in monitoring and enforcement, limited use of digital information systems, poor interoperability between government agencies and weak internal controls.
Auditors said these shortcomings reduce transparency and accountability while limiting the effective use of public funds. The report called for stronger enforcement of licensing regulations, improved oversight and more reliable control mechanisms across the tourism sector.
Cyprus welcomed a record 4.53 million international tourists in 2025, underlining the importance of maintaining high standards across its accommodation industry.
