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Cyprus Hotel Licensing Crisis: What It Means For The Upcoming Tourist Season

As Cyprus gears up for its vibrant tourist season, a significant concern looms over the horizon. Out of 741 tourist accommodations readying their reopening, merely 100 have secured the necessary licenses. This figure represents just 13.5% of the total, a shortfall that is widely observed across all regions.

District Breakdown Of Licensed Hotels

According to recent data from the Deputy Ministry of Tourism, the disparity is consistent across districts: Famagusta licenses just 13 out of 253 hotels, Paphos 20 out of 184, Limassol 26 out of 114, Larnaca 22 out of 112, and Nicosia 19 out of 78.

Efforts To Tackle The Licensing Gap

There is an ongoing legislative proposal to alleviate the pressing issue of unlicensed hotels. Disy MP Kyriakos Hadjiyiannis, chair of the Tourism Committee, is at the forefront of this initiative, which aims to ease regulations with temporary operating permits. Such measures are crucial to maintain compliance, ensure safety standards, and bolster Cyprus’s standing in global tourism.

Moreover, embracing these challenges head-on not only supports local businesses but also aligns with broader economic goals. For example, recent economic forecasts like those by JPMorgan’s revision of the Euro area’s growth forecast further highlight the interconnectedness of regional stability and business prosperity.

As the season fast approaches, the industry’s ability to adapt and respond effectively will define the tourist experiences this year, securing Cyprus’s reputation as a must-visit destination.

Cyprus Construction Price Index Rises Amid Cost Pressures

The latest data from the Cyprus Statistical Service (Cystat) shows that the Price Index of Construction Materials in Cyprus reached 118.89 points in January 2026, based on a 2021 average of 100. Compared with December 2025, the index increased by 0.12%, indicating gradual price adjustments across the sector.

Year-Over-Year Growth

On an annual basis, the index recorded a 1.09% increase compared with January of the previous year. The rise reflects ongoing changes in contractor costs and highlights evolving market conditions within the construction industry.

Commodity-Specific Movements

The report provides a detailed breakdown by material category. Minerals recorded the strongest annual increase at 2.91%, followed by electromechanical products at 2.55%. Products made from wood, insulation materials, chemicals and plastics rose by 1.19%, while mineral products increased by 0.97%. In contrast, metallic products declined by 0.49%.

Volatility In Sub-Categories

More pronounced changes were observed within specific sub-categories. Mineral aggregates rose by 8.34%, while stones increased by 4.97% compared with January 2025. Electrical fixtures posted a 4.65% increase. Iron and steel products declined by 1.73%, and ceramics and cement continued to trend lower, falling by 1.47% and 1.38% respectively.

Methodological Insights

The index is calculated as a weighted average based on the expenditure share of sampled materials during the 2021 base year. Prices are collected monthly from a range of suppliers, using the 15th of each month as the reference date and excluding VAT. The Construction Costs Index applies specifically to new residential buildings.

This detailed analysis not only sheds light on current market trends but also offers stakeholders a robust framework for understanding the underlying cost dynamics in Cyprus’s construction materials market.

Aretilaw firm
The Future Forbes Realty Global Properties
eCredo
Uol

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