Short term tourist accommodation operators in Cyprus are facing a weaker season, with occupancy rates and prices both falling by up to 15 per cent this year,

Speaking with Alpha TV on Saturday, Self-Service Tourist Accommodation Association (Stek) president, Konstantinos Karakontis said demand had slowed compared with last year’s strong performance, although the market had improved compared with that seen in 2024.

“This year is certainly moving at a slower pace compared with last year,” he affirmed, adding that “occupancy is lower by 10 per cent to 15 per cent and prices are also reduced by 10 per cent to 15 per cent”.

The number of active properties advertised on digital platforms has remained between 12,000 and 15,000 in recent years, according to Karakontis, but only around 8,500 currently hold an official licence from the Deputy Tourism Ministry.

He said one of the main challenges facing the sector was the lack of direct connection between the official licensing register and platforms such as Airbnb and Booking.

Karakontis said legislative changes were being promoted to allow live verification of registration numbers, allowing platforms to remove properties operating without valid licences.

“When the registration number is not the real one, the platforms can at the same time delete the property from the platform,” he said.

He also raised concerns over communication between state bodies following the collapse of an apartment building in Yermasoyia, where one of the units had reportedly been used as short term accommodation.

Karakontis said the apartment had obtained a permit, but questioned why information about the building’s condition held by the EOA had not been shared with the tourism authorities.

“The question was simple, why didn’t the EOA give this difference further down?” he said, suggesting that authorities should publish lists of buildings considered unsuitable rather than introduce additional administrative requirements.

Addressing criticism that short term rentals have contributed to housing shortages and rising rents, Karakontis rejected the claim, saying much of the sector’s growth had been concentrated in tourist areas such as Famagusta and Paphos.

He said visitor behaviour remained positive but acknowledged difficulties in managing large numbers of dispersed properties.

“The only thing that really needs to be cracked down on is illegal rentals,” he concluded.