The need for a rational and modern framework to regulate short-term rentals was at the heart of a recent meeting between the Cyprus Property Developers Association and the Chairman of the Parliamentary Committee on Energy, Commerce, Industry, and Tourism, Mr Kyriakos Hadjiyiannis.
Mr Yiannis Misirlis, Chairman of the Cyprus Property Developers Association, accompanied by Board Member Mr Nikola Karoullas and the Association’s Director General Ms Mersina Isidorou, underlined the significant role that short-term rentals play in supporting the Cypriot economy and boosting tourism.
He stressed that such rentals provide vital accommodation options for tourists, promote economic activity in less central areas, and offer citizens the opportunity to earn an additional income, especially critical during a time when rising living costs are placing increasing pressure on households.
Misguided comparisons with Barcelona
During the meeting, Mr Misirlis addressed comparisons that are often drawn between Cyprus and cities such as Barcelona, calling them misguided. He noted that Barcelona is grappling with overtourism, whereas Cyprus is actively seeking to attract more visitors and enhance the competitiveness of its tourism sector.
He also clarified that Barcelona did not impose an outright ban on short-term rentals; rather, it introduced a regulatory framework to manage them more effectively. The implication being that Cyprus should follow a similar path of sensible regulation rather than pursue prohibition.
The impact of banning short-term rentals
The Association raised several potential consequences that could result from a blanket ban on short-term rental properties:
- Damage to the tourism sector: A reduction in the availability of accommodation options could make Cyprus less attractive and less competitive as a tourist destination.
- Loss of supplementary income for citizens: Many Cypriot families rely on the extra income generated from short-term letting, particularly as inflation continues to erode household budgets.
- Negative impact on related professions: A slowdown in short-term rental activity would also affect those working in associated sectors such as electricians, plumbers, cleaners, and other service providers.
- Decline in rural tourism: Visitors who choose to stay in short-term rental accommodation outside urban centres often spend money in local businesses such as restaurants, cafés, shops, entertainment venues, and local tour operators, thereby stimulating the rural economy.
A call for balanced, forward-looking regulation
In light of these points, Mr Misirlis reiterated the Association’s position: that Cyprus needs a modern, well-structured regulatory framework for short-term rentals. One that ensures fair competition, tax compliance, and sustainable growth for the property and tourism sectors alike.
The meeting concluded on a constructive note, with the Cyprus Property Developers Association assuring Mr Hadjiyiannis of its willingness to actively participate in the policymaking process.
The Association committed to contributing its insights and proposals to help develop a comprehensive and effective regulatory environment – one that serves the interests of the Cypriot economy, the public, and property owners.
(Translated & summarised from a Greek article in StockWatch)
A very simple solution.
Rather than a prohibition, it’s a matter of clarifying that illegal (not following the regulations) short-term rentals are not tolerated any longer.
In other words, the law must be followed, and those who violate it should be held accountable.
This benefits all parties involved.