Cyprus tourist association says housing shortage exacerbated by Airbnb

The Cyprus Tourist Enterprises Association (Stek) on Wednesday issued a warning about the unchecked operation of short-term rentals and the escalating influx of tourists into the occupied areas, highlighting “asymmetric risks” for the hotel industry.

In a press release, the association pointed out that the legitimate hotel industry in Cyprus is continuously and increasingly affected by the reckless rise of short-term property rentals and the growing tourist flow into the occupied territories.

Concerning short-term property rentals, like those offered on Airbnb, Stek reiterated its profound concern about the matter, citing a persistent increase in unfair competition.

“On one hand,” the association states, “there are thousands of accommodations that have yet to be registered in the relevant registry and are therefore operating completely uncontrolled, possibly illegally and untaxed,” Stek said.

“On the other hand, there are properties that have been registered in the registry but provide hotel services without paying the associated fees/taxes, lacking proper licensing, and not following the same operational rules as hotels,” it added.

Moreover, the association noted that the influx of residential properties into the short-term rental market has led to a significant shortage of properties for purchase, especially for long-term renting, resulting in a continuous rise in property prices and rents.

This phenomenon has prompted many European cities to impose strict regulations on the sector, including restrictions on the allowed rental duration or even complete bans on short-term rentals in specific areas.

Stek believes that “it’s time for the state to address this issue seriously and decisively” and urges relevant authorities to conduct a comprehensive study as soon as possible.

The study, the association added, should “accurately assess the extent of the problem and, at the same time, propose specific recommendations for its resolution”.