Airbnb beyond scope of the law
Flats rented out through web-based platforms such as Airbnb have not been included in a law regulating tourist units and will be left out of the official register to be created.
The relevant bill, submitted jointly by DISY President Averof Neophytou and EDEK MP Elias Myrianthous and discussed at the House Commerce Committee, saw the inclusion of self-service touristic units becoming eligible to receive an operating license.
Lawmakers found it best to leave apartments in residential buildings out of the law’s scope of regulation, invoking the possibility of social reactions in the event of legalization the renting of tourist apartments in residential areas.
Averof Neophytou said under current legislation, renting on a daily basis, any accommodation or apartment or individual villa or residence is prohibited.
The DISY chief said that the parliament “will not allow owners of apartments in residential areas to rent them out as tourist accommodation units while the area’s residents object to it”.
Myrianthous on the other hand, said the state is losing revenue that it could receive through licensing rights and that quality checks of the services provided could be carried out with amendments made to the regulations. He noted that there are around 20,000 illegal villas and dwellings, with most owners interested in acquiring licensing.
According to what was discussed in the committee by stakeholders, a third of tourists arriving in Cyprus seek accommodation in non-registered tourist units.
An estimated 3,000 of above mentioned non-registered tourist accommodation are to be found on Airbnb’s platform, with hoteliers appearing disappointed with the non-inclusion of these rooms in the law.
Hoteliers are believed to be unhappy with this development because they are subjected to strict regulations and have invested significantly in upgrading their product and pay taxes but are faced with unfair competition. Hotels also fear that these units, while in the short term appear to be beneficial, especially at a time where booking a Cyprus holiday seems impossible as hotels are fully booked, in the long run they may endanger efforts to enhance the country’s tourism product.
Chrisemily Psilogeni, President of the Association of Cyprus Tourist Enterprises
the agrees with this view.
“Such residencies which operate illegally, without any license and do not conduct various safety and hygiene checks, are only causing damage to our tourism product, while depriving the Cypriot economy of income,” said Psilogeni.
He added: “The services provided in this type of accommodation are characterised by low quality and undermine the efforts of all tourist partners to upgrade our tourist product”.
The head of ACTE told the Financial Mirror that the issue has long been a concern for ACTE. "We are not opposed to modern trends, but we claim legitimacy and defend the rights of hundreds of businesses that have been working for decades under adverse conditions, trying to maintain a high standard in tourist services.”