Breaking news

Parliament Prepares Vote on Revised Operating Hours for Recreational Venues Amid Industry Divide

The final draft for the legislation governing recreational centers now rests with Parliament. Lawmakers are set to present the proposal for approval at an extraordinary session. Despite a two‐week consultation period granted by the Parliamentary Commerce Committee to the government and affected agencies, the discussions have so far failed to yield a unified stance.

Proposed Regulatory Changes

The reintroduced bill, which is once again slated for debate before the Commerce Committee, outlines specific operating hours for various categories of establishments. Among the key provisions are:

  • Restaurants, Taverns, Pizzerias, Cafes, and Snack Bars: Permitted to operate daily from 6:00 a.m. until 1:30 a.m.
  • Pubs and Bars: Authorized to operate from 8:00 a.m. until 2:30 a.m.
  • Indoor Banquet Halls and Reception Venues: Allowed to function every day from 8:00 a.m. until 5:00 a.m. the next day.
  • Outdoor Reception Areas: Authorized operating hours from 8:00 a.m. until 1:30 a.m.
  • Nightclubs: Indoor venues can function daily from 8:00 p.m. to 5:00 a.m., while outdoor venues must close by 1:30 a.m.
  • Discos and Cabarets: Permitted to operate from 8:00 p.m. until 5:00 a.m. the following day.

Industry Reactions and Concerns

Preliminary submissions to Parliament reveal significant industry dissent. The Pan-Cypriot Association of Recreation Center Owners (ΠΑΣΙΚΑ) rejects the differentiation in operating hours, especially the inclusion of banquet halls under extended operational status. They warn that the bill could trigger cascading effects by reducing revenues for taverns, restaurants, bars, and breweries, thereby jeopardizing small businesses and endangering local employment.

Similarly, the Paphos Recreation Center Owners Association (ΣΙΚΑΠ) has voiced its opposition. According to the group, the proposed legislation favors a narrow segment of large enterprises while threatening the survival of hundreds of neighborhood venues, particularly in non-touristic locales and areas with traditionally modest business scales. The association is urging lawmakers to consider amendments that reduce both the extended hours and associated penalties, calling for a limitation of powers granted to the Deputy Ministry of Tourism and the exclusion of less frequented regions.

Divergent Views Within the Sector

In contrast, the Ammochostos Recreation Center Owners Association (ΣΙΚΑΑ) supports the general direction of the bill, even as it calls for further revisions. The association distances itself from what it describes as sweeping and alarmist criticism. According to ΣΙΚΑΑ, many industry representatives see the bill’s core provisions as beneficial for modernizing and streamlining sector operations, while still acknowledging that certain details, such as the designated operating hours for dining venues, warrant further refinement.

Closing Remarks

During previous debates, the General Director of the Deputy Ministry of Tourism, Kostas Konstantinou, indicated that all avenues for consultation have been exhausted, noting that discussions on the draft have persisted since 2018. With mounting pressure from industry stakeholders, members of the Commerce Committee have already signaled that the forthcoming debate may be held in a closed session, underscoring the high stakes inherent in these proposed changes.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

The Future Forbes Realty Global Properties
eCredo
Aretilaw firm
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter