The Law on the Establishment and Operation of Hotels and Tourist Accommodation of 2019 (no. 34(I)/2019) (“Law”) introduced substantial changes to the legal regime on the licensing, classification and operation of hotels and tourist accommodation in Cyprus.

The Law and relevant regulations, which were introduced in March 2019, aimed at modernising a long-outdated legal framework, providing greater flexibility to the Cyprus tourism industry and an opportunity for hotels in Cyprus to obtain all required licenses and permits.

Main Changes in Licensing Requirements

Some of most substantial changes in the procedure for the licensing of Hotels in Cyprus are:

• Abolition of the Requirement for a Certificate of Field Suitability (πιστοποιητικού καταλληλότητας γηπέδου)
• Abolition of the requirement of Approval of the architectural plans by the Deputy Ministry of Tourism.
• Abolition of the requirement to submit room rates for approval,
• License is issued upon submission of all required certificates and licenses,
• Hotel license also covers restaurants operating within the Hotel premises,
• License & Classification are valid for a three (3) year period
• Classification granted based on quality, service & product offering
• Introduction of new Classes of “Boutique Hotels”, “Suite Hotels” & “City Hotels”
• Introduction of the Secret Visitor procedure.

Hotels: City Hotels, Boutique Hotels & Suite Hotels

Hotel Ratings under the new Law range from No Stars up to Five (5) Stars. Hotels established and operating in traditional buildings do not receive a star rating.

The New Law also introduced the following hotel categories:

• “City Hotels” for hotels located within a City Centre or a Central Commercial District and
• “Suites” or “Suite Hotels” for hotels with at least 80% of their rooms having an internal area of at least 40 m².

City Hotels with no more than 100 rooms or other hotels with no more than 80 rooms may also be designated as “Boutique Hotels” if they meet at least one of the following criteria:

1. There is a particular theme or character of decoration and/or architecture in the hotel,
2. There are different decorative themes in each room or
3. There is a specific decorative them in each communal area or room.

It is worth noting that an application for the designation “Boutique Hotel” must be accompanied by an explanation of the relevant theme/concept and signed by the responsible, licensed Architect or Interior Designer. There are no restrictions on having two or more hotels with the same theme or concept and a hotel may be designated as both “Suite” and “Boutique”.

Other Tourist Accommodation

The Law also provides for the following types of tourist accommodation:

• Camping Grounds and Car Camping grounds,
• Hotel Apartments and Serviced Flats, that form part of a unified development of at least 5 apartments,
• Tourist Villages,
• Tourist Villas and
• Traditional Buildings.

Organised Hotel Apartments and Tourist villages may be classified as Luxury, A or B Class or Unclassified.

Licensing Requirements

The Law specifically provides that a License for the Operation of a Hotel will be granted by the Deputy Ministry of Tourism within two (2) months of the submission of a duly completed application for a Hotel License.

On a final note, one of the most commonly referred to obstacles faced by Hotels under the previous regime was the need for approval of architectural plans by the ex-CTO (now Deputy Ministry of Tourism). Although this requirement has now been abolished, it is important to note that having a valid Building Permit (Άδεια Οικοδομής) is a fundamental requirement of the licensing procedure.

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