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Parliament Approves Pivotal Adjustments To Hotel And Tourism Accommodation Licensing Laws

The Hellenic House of Representatives has approved significant amendments to the law governing the establishment and operation of hotels and tourism accommodations. With a decisive vote of 25 in favor and 15 abstentions, the modifications aim to extend compliance deadlines for obtaining operating licenses and introduce a rigorous special permit regime for properties that are currently non-compliant.

Extended Compliance Deadlines And Refined Requirements

Lawmakers have granted operators critical additional time to meet licensing obligations. The revised framework extends the deadline for securing an operating license until November 30, 2026, and also provides a one-year extension for other statutory requirements as stipulated in Article 18 of the current law. These measures address the challenge faced by many hotels and tourism facilities that have been unable to fulfill the necessary documentation requirements to obtain their licenses.

Introduction Of Special Operating Permits Based On Fire Safety Standards

The reform, proposed by legislator Kyriakos Chatziannou of DISY representing Ammochostos and backed in part by AKEL, introduces the issuance of a special operating permit. This permit is contingent upon stringent conditions, including a comprehensive review of the facility’s architectural plans by an independent consultant and the submission of detailed fire safety studies. The initiative is designed to ensure that both active and passive fire protection measures are thoroughly verified by the relevant authorities, notably the Fire Service.

Comprehensive Enhancements To The Regulatory Framework

The amendments incorporate several critical updates:

  • Extension of the compliance deadline for obtaining an operating license until November 30, 2026.
  • A one-year extension of additional deadlines as outlined in Article 18 of the current law.
  • Replacement of the term “temporary operating license” with “special operating permit” to reflect enhanced safety requirements.
  • Substitution of the term “special fire protection plan” with “fire protection study”.
  • Extension of the Fire Service’s review period for submitted fire protection studies from 30 days to six months.
  • Implementation of a unified, standardized evaluation process for fire safety recommendations.
  • Revision of the special fire certification validity, now effective for three years, with a one-time renewal for an additional two years, subject to onsite inspections.
  • Provision for the automatic invalidation of the special fire certification if unauthorized building modifications occur.
  • Authority for the Fire Service to revoke the certification if the requisite fire safety measures are not maintained.
  • Modification of the validity of the special operating permit to three years, renewable once for a further two years.
  • A mandatory condition is that, following expiration, no hotel or tourism accommodation may operate without securing a valid operating license in accordance with the law.

These changes are set to modernize the regulatory landscape for the tourism sector, balancing the need for operational flexibility with uncompromising safety standards. By integrating extended compliance timelines and robust fire safety protocols, the new law aims to safeguard both public safety and the long-term viability of the hospitality industry.

Cyprus Introduces €200 Million Support Measures To Cut Energy And Food Costs

Comprehensive Relief Measures For A Resilient Economy

The government of Cyprus introduced support measures exceeding €200 million to reduce household expenses and support key sectors. The package targets energy costs, food prices, tourism and agriculture. Measures come in response to rising costs and supply pressures. Implementation begins in April and May 2026.

Energy And Fiscal Reforms

The government will reduce VAT on electricity for households to 5% from May 1, 2026, to March 31, 2027. The measure is expected to lower energy bills. Special consumption tax on transport fuels will decrease by 8.33 cents per liter between April and June 2026. Policy targets fuel-related costs.

Broadening The Zero VAT Initiative

Authorities will expand the list of products with zero VAT. Meat, poultry and fish will be included from April 1 to September 30, 2026. Existing zero-VAT categories already include fruits and vegetables. The government also decided not to introduce a green tax on fuels, avoiding an additional cost of about 9 cents per liter.

Sector-Specific Supports

The package includes a 30% wage subsidy for hotel employees for April 2026. Measure supports tourism businesses during the early season. Support for airlines aims to maintain connectivity with key destinations. The agriculture sector will receive subsidies covering 15% of costs for fertilizers and supplies in April and May.

Economic Stability, National Security

President Nikos Christodoulidis said economic stability remains a priority for the government. He noted that growth, fiscal balance and inflation trends support current policy decisions. Statement links economic policy with broader national priorities. The government continues to monitor external risks.

Ensuring Consumer Protection

Furthermore, the government has mandated rigorous market oversight and intensified inspections to prevent exploitative pricing during this period of economic intervention. This proactive stance ensures that the benefits of the measures directly serve the citizens without unintended inflationary impacts.

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