31.08.2023
The Association of Cyprus Tourism Enterprises ( Stek ) on Wednesday warned of the uncontrolled operation of short-term rentals and the growing influx of tourists into the occupied areas, highlighting “asymmetric risks” for the hotel industry.
In a press release, the association noted that the legitimate hospitality industry in Cyprus is constantly and increasingly being affected by the reckless growth of short-term rental properties and the growing tourist flow to the occupied territories.
As for short-term property rentals like those offered on Airbnb , Stek reiterated its deep concern, citing the continued rise in unfair competition.
“On the one hand,” says the association, “there are thousands of accommodations that are not yet registered in the relevant register and therefore operate completely uncontrolled, perhaps illegally and not taxed. On the other hand, there are properties that are registered in the register, but provide hotel services without paying the relevant fees/taxes, do not have proper licensing and do not follow the same operating rules as hotels,” it added.
Moreover, the association noted that the influx of residential properties into the short-term rental market has led to a significant shortage of properties for purchase, especially for long-term rentals, resulting in a continuous increase in property prices and rents. This phenomenon has prompted many European cities to introduce strict regulations in the sector, including restrictions on the permitted duration of rentals or even a complete ban on short-term rentals in certain areas.
Stek believes that “the time has come for the state to seriously and decisively address this issue” and calls on the relevant authorities to conduct a comprehensive study as soon as possible. The study, the association added, should “accurately assess the scope of the problem and at the same time offer concrete recommendations for solving it.”
