The number of registered short-term rental properties in Cyprus has surged by 73% since April 2023, reaching 8,248 units, according to Deputy Minister of Tourism Kostas Koumis. Speaking on Tuesday after a session of the Parliamentary Committee on Tourism, Koumis addressed the implementation of legislation governing short-term rental accommodations.

Discussing the future of tourism in 2025, Koumis highlighted a record-breaking year in 2024, with peak revenues and arrivals. He anticipates a similarly strong performance in 2025, with the key challenge now being the extension of the tourist season.

Koumis acknowledged that the issue of short-term rentals is a significant concern in many countries and was recently debated in the European Parliament. The primary focus of the Parliamentary Committee session was to assess whether all short-term rental properties operating in Cyprus have been registered with the Deputy Ministry of Tourism.

"As I stated in the Parliamentary Committee, registrations in the ministry’s official registry have increased by 73% since April 2023. This percentage could rise to 99.8% once all pending applications, currently at 1,275, are processed," Koumis said. He also noted that 1,170 applications remain incomplete due to applicant-related issues.

The Deputy Minister attributed the rise in registrations to the ministry’s awareness campaigns. In numerical terms, in April 2023, the registry included 4,765 properties with a total of 7,138 beds. Today, the registered properties stand at 8,248, accounting for 36,640 beds.

Koumis emphasized that the regulation of short-term rentals requires a holistic approach. "A legislative amendment has already been submitted to the Legal Service for review. We are currently in an ongoing process of formulating a comprehensive approach to this issue," he said.

When asked about restrictions imposed in other European countries to protect the hotel industry and address housing shortages, Koumis explained that the impact of short-term rentals varies by country and city. Spain was among the first to take strict measures by delegating regulatory authority to local governments. However, most countries have not implemented immediate restrictions. Instead, Spain has opted for a gradual approach, aiming to ban short-term rentals by 2028. Meanwhile, Greece introduced regulations in 2024, prohibiting new short-term rental registrations in three central districts of Athens starting January 1, 2025.

"Each country approaches the issue differently based on its unique circumstances, and the same applies to Cyprus," Koumis noted. "The regulatory approach for Nicosia is expected to differ from that of coastal destinations."

He acknowledged the complexity of the issue, stating that while short-term rentals contribute to the tourism economy, they also compete with the hotel industry. "We are particularly concerned about what is referred to as 'para-hospitality,' as a destination’s reputation is shaped by the overall quality of its accommodation and the first impression it provides to visitors," Koumis emphasized.

When asked whether 2025 will be a strong year for Cyprus tourism, Koumis stated that 2024 was an exceptional year, marking record highs in both revenue and arrivals.

"For us, the crucial achievement was closing the gap left by the loss of the Russian market within two years," he said. Over this period, both arrivals and revenue grew by more than 25%.

Looking ahead, he expects 2025 to be equally successful. "The biggest challenge now is extending the tourist season," he concluded.