The majority of hotels and hundreds of leisure centers were operating without a license at the end of 2018, as the Parliamentary Audit Committee was informed today, which examined the report of the Audit Office for the CTO for the year 2017.
According to data presented by the Auditor General, Odysseas Michailidis, on 31.12.2018 there were 243 hotels and 3600 leisure centers, while due to the non-satisfaction of the relevant legislation, the operating licenses were renewed for only 59 hotels and 2234 leisure centers, ie 24% and 62%, respectively. Consequently, 76% and 38% of hotels and leisure centers, respectively, operated without a license, with Odysseas Michailidis warning that this situation poses risks to the safety and health of both customers and employees of these companies.
The main reasons, according to the Auditor, of not renewing the operating licenses are the arbitrary extensions and modifications, which are made by several hotel units and leisure centers without obtaining the relevant approvals (town planning permit, building permit, etc.)
As he mentioned, out of the 26 5 * hotels and the 58 4 * hotels that operated on 18.2.2019, only 4 5 * hotels and 9 4 * hotels have issued operating licenses for the year 2018, while 19 5 * hotels and 43 4 hotels * have been operating since 2009, without a license.
Odysseas Michailidis said that in October 2014 the President of the Organization informed the Audit Office that the choice of criminal prosecution against the owners of these accommodations would mean the issuance of suspension orders of dozens of large hotel companies and the dismissal of thousands of employees.
For his part, the Deputy Director General of the Ministry of Tourism, Theofanis Tryfonos, said that the new law that came into force a few months ago for the licensing and categorization of hotels and tourist accommodation gives a grace period of 5 years to obtain a license. At the same time, by law, many bureaucratic procedures considered by the CTO are no longer required. He further noted that the new law gives the owners of these accommodations incentives and many possibilities that they did not have before, such as city hotels, boutique hotels and traditional accommodations and based, as he said, the preferences of tourists "is a golden opportunity for them. hoteliers to realize and maximize the time allowed by the law ".
He stressed that in matters of safety and health "we are relentless" and that they carry out inspections "two or three times".
"Two-speed employees"
The Auditor General also referred to "two-speed employees" at the State Department, as a result of which CTO employees transferred to the Ministry maintained plans and funds (Welfare Fund, Mortgage and Training Loan Subsidy Fund, and Employee Staff) , which were in force while still employees of the CTO.
It is noted that by decision of the Council of Ministers no. 82.112 days 15.2.2017 approved the Agreement signed on 3.2.2017 between the Government and trade unions, which provided for the maintenance of these plans and funds with the entry into force of the Law on the Ministry of Tourism.
However, as the Auditor pointed out, Article 14 of the relevant law provides that every CTO employee is transferred to the Ministry of Tourism and "enjoys all the rights and benefits and has all the obligations and duties of civil servants" and therefore recommends the abolition. of these plans and funds.
In this regard, Mr. Tryfonos referred to both the agreement between the government and trade unions and the law on the establishment of the Ministry of Tourism, referring specifically to Article 14 (4), which provides that the salaries and other conditions of employees can not be changed. adversely.
Parties express concern, speak of insulting Cypriot tourism
DISY MP Annita Dimitriou, answering a question, expressed concern about the situation, stating that "most do not have a license and this is very important, because a license implies certain provisions, which should be met." The goal, he noted, is not to impose sanctions, but to respond to what needs to be done in order to operate legally, always with consumer protection in mind.
The President of the Movement of Ecologists - Citizens' Cooperation, George Perdikis, stated that "there are insignificant but also important illegalities and this situation of illegality and lack of control continues in perpetuity and offends the Cypriot tourism". He stated that the voting of the grace period "was another mistake of the Parliament". Mr. Perdikis expressed the view that there should be safety valves so that at the end of the grace period we do not face the same problems. We are not, he said, of the opinion that because they do not have an operating license they should close, but fines and penalties can be imposed and conditions for temporary operating licenses can be introduced and checked within a binding schedule of no more than 5 years that they will obtain the operating license .
Source: KYPE