More than half of Cyprus’ hotels do not have an operating license, the country’s Audit Office revealed in a report last week. This long-standing problem casts a shadow over the legality and credibility of the Cypriot tourism product, as it poses risks related to the country’s reputation and visitor safety.
Out of the 728 hotels and tourist accommodations registered with the Deputy Ministry of Tourism as of April 27, only 168 (23%) have an operating license, while another 158 accommodations (22%) operate on the basis of a temporary operating license, as they are unable to comply with the obligations for full licensing.
The oversight agency identified serious weaknesses on the part of the deputy ministry in bringing hotel entrepreneurs into compliance with the licensing regime, while also detecting distortions in the management of grant schemes and inefficient utilization of public resources.
The Audit Office’s special report also saw deficiencies in control mechanisms, limited utilization of information systems, insufficient interoperability and weaknesses in internal control. It further pointed out the need to enforce rules and operate reliable accountability and control mechanisms.
