The Association of Cyprus Tourist Enterprises (Stek) has renewed its call for stricter oversight of short-term holiday rentals, arguing that a recent Audit Office report confirms long-standing concerns about weak regulation and enforcement.

Audit Findings Reinforce Long-Standing Concerns

According to Stek, the report exposes significant shortcomings in the supervision of online short-term rental platforms, raising concerns about visitor safety and the reputation of Cyprus’ tourism industry.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

“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,” the association said.

For years, Stek has argued that the existing legal framework has failed both in design and implementation, allowing accommodation providers to operate without the licences required by law.

Calls For A Stronger Regulatory Framework

Maintaining a property register alone is no longer sufficient, the association said. Instead, Cyprus needs a comprehensive system based on inspections, effective supervision and meaningful enforcement to ensure all accommodation providers operate under the same rules and safety standards.

Beyond creating unfair competition for licensed hotels, the rapid expansion of short-term rentals has also increased pressure on housing availability, disrupted residential neighbourhoods and, in some cases, created safety concerns for guests.

Stek welcomed the Deputy Ministry of Tourism’s plans to revise the legislative framework, describing the review as an opportunity to address longstanding weaknesses and bring Cyprus closer to practices already adopted in several European countries.

What Stek Wants To See

Among the proposed measures are systematic inspections, stronger enforcement powers backed by meaningful financial penalties and mandatory registration numbers displayed on all online listings.

Stek also supports closer cooperation between booking platforms and public authorities to remove illegal listings more quickly, as well as introducing a maximum annual rental period for short-term accommodation.

Additional proposals include allowing local authorities to restrict short-term rentals in areas facing housing shortages or excessive tourism pressure, introducing an overnight stay levy and applying common safety, health and insurance standards across all accommodation providers.

Europe Is Tightening Regulation

Pressure for reform is growing across Europe as governments seek to address the impact of short-term rentals on housing affordability and local communities.

Several cities, including Paris, have introduced stricter limits on the number of days primary residences can be rented each year, while EU rules that entered into force in May 2026 require hosts to register properties through a common database, making it easier for authorities to identify illegal listings.

The issue is becoming increasingly significant in Cyprus. Eurostat data show that guests booked 1.71 million overnight stays through online platforms such as Airbnb, Booking and Expedia during the fourth quarter of 2025.

Across the EU, online short-term rental accommodation recorded 144.3 million guest nights in the first quarter of 2026, up 9.7% from a year earlier, highlighting the sector’s continued expansion and the growing focus on stronger regulation.