The Cyprus tourist association is advocating for stronger regulation of short-term holiday rentals following a recent report from the Audit Office that confirms their long-standing concerns.
- The Cyprus tourist association is advocating for stronger regulation of short-term holiday rentals following a recent report from the Audit Office that confirms their long-standing concerns.
Stek, the association representing Cyprus tourist enterprises, expressed that the findings from the Audit Office reveal serious weaknesses in the supervision and enforcement of online short-term rental platforms. These shortcomings pose significant risks not only to visitors but also to the broader tourism industry in Cyprus.
According to Stek, “The weaknesses in the supervision and control mechanisms for electronic short-term rental platforms constitute a significant risk to the safety of users and may have a direct negative impact on the credibility and quality of Cyprus’ tourism product.” This statement highlights the urgency of addressing regulatory gaps that have persisted for years.
Despite numerous warnings from the association about the inadequacies of the current legal framework—both in provisions and implementation—many accommodation providers continue to operate without the necessary licences. Inspections remain limited, and cooperation among relevant authorities is insufficient.
Stek argues that merely maintaining a register of accommodation properties is no longer adequate. Instead, a comprehensive framework of supervision, inspections, and effective enforcement is required to ensure compliance with safety standards and obligations applicable to all hospitality sector operators.
The association also noted that inadequate regulation leads to unfair competition, disadvantaging licensed hotels and other legitimate businesses. Furthermore, the rapid increase in short-term rentals is contributing to pressures on the housing market, making it harder for permanent residents to secure affordable accommodation. This trend is not only detrimental to local communities but also threatens the quality of life in neighbourhoods and exposes visitors to potential safety risks.
Welcoming the intention of the Deputy Ministry of Tourism to revise the legislative framework governing short-term rentals, Stek sees this as a crucial opportunity to rectify long-standing issues and introduce measures implemented in various European nations. The association advocates for systematic inspections to identify and eliminate illegal accommodation providers and for stronger enforcement mechanisms, including significant administrative and financial penalties for non-compliance.
There is also a call for mandatory display of registration numbers on all online booking platforms, as well as enhanced cooperation between these platforms and authorities to ensure illegal listings are promptly removed. Additionally, Stek proposes introducing a maximum annual rental period for short-term lets, similar to regulations in several European countries.
Local authorities should be empowered to restrict or prohibit short-term rentals in areas experiencing housing shortages or where the quality of life for residents is deteriorating, according to Stek. The association also suggests implementing a mandatory overnight stay levy and establishing common safety, health, and insurance standards for all accommodation providers.
Many European countries have demonstrated that the sustainable operation of short-term rentals relies on clear rules and effective supervision. Stek believes that a balanced approach can support tourism while also protecting local communities and housing markets.
In light of ongoing discussions, the association plans to actively participate in public consultations regarding the new legislation, submitting detailed proposals aimed at creating a modern and enforceable framework that ensures fair competition and safeguards both visitors and local communities.
The renewed push for regulation comes as various European governments tighten controls on short-term rentals, amid growing concerns over their impact on long-term housing supply and accommodation costs in popular destinations. Cities like Paris have introduced stricter limits, including caps on the number of rental days for primary residences, imposing substantial fines on property owners who violate the rules.
At the EU level, a new piece of legislation set to come into force in May 2026 will mandate hosts to register properties in a common database, enabling authorities to identify and remove illegal listings more efficiently.
Recent Eurostat data underscores the growing significance of online booking platforms in Cyprus’ tourism market, showing that in the fourth quarter of 2025, there were 1,711,525 guest nights in short-term rental accommodation booked through these platforms. This reflects an increasing reliance on services like Airbnb, Booking, and Expedia for accommodation. Across the EU, guests spent 144.3 million nights in short-term rentals booked online during the first quarter of 2026, marking a 9.7 per cent increase from the previous year and a 16.6 per cent rise from two years prior, further illustrating the sector’s rapid expansion.
