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Cyprus Business Permits - Operating A Hotel

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Information on permits required to operate a Cyprus hotel

Cyprus Hotel                                         Photo © CyprusExpat.co.uk

Operation of Hotels and other Tourist Establishments
    
Description

In order to operate a hotel or other tourist establishments in the Republic of Cyprus, natural and legal persons need to secure a Licence for the operation of a hotel establishment from the Cyprus Tourism Organisation.

Eligibility Criteria

A licence to operate a hotel or other tourist establishment in Cyprus, can be granted only to natural or legal persons resident in the Republic of Cyprus or citizens of another member state or legal persons situated in another member state.

Additionally, the appointment of a person to the post of manager must be made following the approval of the Board of Directors, which must examine the qualifications of the person proposed and assess his ability and experience. Specifically, the manager of the hotel must possess the following qualifications:

As regards to hotel units of the class of five and four stars, he/she must possess a diploma or degree of at least a two year post-secondary course in general hotel education, from a recognised higher school or college, or any other equivalent qualification and at least five years prior service in a managerial position in a hotel of at least three stars;

As regards hotels of the class of three and two stars with a capacity of over 100 beds, he must possess a diploma or degree of at least a two year post-secondary course in general hotel education, of a hotel or tourist school or other equivalent qualification and at least three years prior service in a position of authority in a hotel:

As regards to hotels of the class of two stars with a capacity up to 100 beds, he must possess at least a certificate of hotel or tourist school and at least three years of service in a position of authority in a hotel;

As regards to the hotels of the class of one star, he must at least possess a certificate of studies of a school of secondary or equivalent education, and at least two years of service as a hotelier or hotel employee;

 As regards all hotel units:

Besides the official language, he must have a good knowledge of at least one of the prevailing foreign languages in the tourist trade, as regards hotels belonging to the classes of five, four and three stars, and an elementary knowledge of at least one foreign language in all other cases;

He/she must be above 25 years of age;

He/she must not been convicted of theft, conversion, fraud, blackmail, any offence against morality, breach of the laws relating to the protection of currency, smuggling, using or facilitating the use of drugs, or sentenced to a fine exceeding fifty pounds or to imprisonment for breach of the hotel legislation in force for the time being;

He/she must be of a moral standard.

Application Procedure

In order to obtain an operating Licence for a Hotel or other Tourist Establishments in the Republic of Cyprus one must file the following applications, which can be submitted either through the PSC Cyprus or directly to the competent authority. Please note that the submission of the aforementioned online application form necessitates the use of an electronic signature, which has to be under the sole control of the applicant.

The Cyprus Tourism Organisation

P.O.Box 24535,

1390 Nicosia

Tel. +357 22691234, +357 22691165

Fax +357 22338541

1. Application for the Procurement Suitability Certificate of the site for the erection of hotels or tourist establishments;

2. Application for the approval of plans for the erection of a hotel establishment.

Firstly, the applicant must submit the application (1) above to the CTO to secure a certificate of suitability of the plot intended to be developed, which must satisfy the terms and conditions referred to in the Regulations.

Secondly, the applicant must submit the application (2) above to the CTO to secure approved plans. In order to do so, the architectural studies and plans of newly proposed establishments must be submitted to the CTO for approval, after securing the Town Planning Permit, referring either to the erection of a new building or the alteration or the extension of an existing building, in compliance with the prescribed terms of the proposed category and class.

The examination of the study and plans of the hotel establishment by the CTO is an absolute prerequisite for the granting of the building permit, without binding the relevant Authority in the exercise of its powers and competencies. The examination fees for the approval of the architectural plans are shown in the section related documents.

In addition, the application for the approval of plans for the erection of a hotel establishment needs to be accompanied by the following documents:

an original land survey plan;

an original landscape plan of the site;

a copy of the suitability certificate of the site for the erection of hotels or tourist establishments , issued by CTO;

a copy of the Title Deed of ownership;

an original of the Planning Permit (two sets of drawings and conditions);

a complete set of architectural drawings (plans, elevations and sections);

the original certification of the Planning Authority for the approval of the environmental impact study, where it is needed.

CTO also examines and approves the name of the hotel establishment, irrespective of whether it has been approved by the Registrar of Companies. The name of the hotel establishment can be included in the relevant application for the approval of the architectural plans or later by submitting to the CTO separate application (letter) for the approval of the hotel’s trade name.

The approval of plans by the CTO is valid for one year. It is prohibited after the expiration of the said period to grant a building permit unless an application to the appropriate authority is submitted prior to its expiration.

The operator of the hotel establishment must, at least three months before the date when the hotel begins to operate, submit to the Board of Directors of the CTO an application for classification and licencing of hotel establishment and an application for the position of a manager of a hotel establishment.

In parallel, in the case of operating an existing hotel establishment, the application for a hotel establishment operator is to be submitted along with the application for the position of a manager of a hotel establishment either through the PSC Cyprus or directly to the competent authority.

The electronic online application form for a "Hotel Establishment Operator" must be accompanied by the following documents:

copy of identity card or passport of the new operator (in case of a physical person);

copy of Certificate of Registration (in case of legal entity);

copy of Certificate of Directors and Secretary (in case of legal entity);

copy of Article and Memorandum of Association (in case of legal entity);

copy of Certificate of Registered Office Address(in case of legal entity).

The electronic online application form for the "Details of the Manager of a Hotel Establishment" must be accompanied by:

copy of the Identity Card or Passport

copy of Certificates of academic qualifications

copy of proof of industrial experience from past employers or relevant evidence

copy of valid and recent criminal offence record of the manager in accordance with the requirements of section 5(3)(d) of the Law. The original certificate/s must be submitted prior to approval of application.

The applicant is informed regarding the authorisation decision within 3 months from the date that the application form and supporting documents were duly submitted. Upon approval, the applicant needs to pay the fees provided below.

The licence is valid for one or two years, depending upon the category of the particular establishment and expires on the 31st of December of the year following the year of the issue and it is renewed upon renewal for the classification or upon reclassification.

The fees for a licence to a operate a hotel establishment payable by the operator of the hotel business, in cash, cheque or bank transfer, for the issue or renewal of the licence are presented in related documents.

Obligations and Supervision

The manager and entrepreneur of the hotel establishment whether the entrepreneur is a physical person or legal person, a legal entity in the name of which the operating licence of a hotel establishment is issued have obligations before any Authority, Law and Regulations, which are mainly the following:

Classification and Licence to Operate (Regulation 2-4)

The entrepreneur must submit to the Organisation an application for classification and issue of an operating licence at least three months before the commencement of the operation of the hotel establishment;

It is prohibited to operate a hotel establishment before its classification and the issue of its license without the prior written approval of the Organisation;

The operating licence of a hotel establishment must be displayed at a prominent place either at the office of the management or at the reception area;

The name of the hotel must be displayed in a conspicuous place on the outside of the hotel in the language in which it has been recognised in the licence and in any other language of those prevalent in the tourist trade.

Pricelists (section 3 Regulation 8-9, Regulation 60)

Every hotel establishment must submit to the Organisation for approval a pricelist which must include all food and beverages offered in the establishment describing in detail the goods served;

Prices on all items in the pricelists must include all charges such as the service charge, and V.A.T.;

Pricelists must be written in Greek and in other foreign predominating language;

Prices over all goods should correspond to normal quantities and qualities and the food must be prepared and presented in a professional way;

Pricelists must clarify the following:

The type of fish or meat used for the preparation of every food; and whether it relates to local, freshly imported or frozen goods.

Cyprus coffee must always be served with potable water;

Copies of the approved pricelist must be readily available in the establishment where food and beverages are being served;

Prices which are approved are valid from the 1st of April of every year until the 31st of March of the following year when they expire and must be renewed.

Client information and statistics (Regulationj 10,64)

It is imperative to keep a record of registration cards with information about the name, address, nationality, profession, dates of arrival and departure of every client in the establishment;

Every entrepreneur or Manager of a hotel establishment must submit to the Organisation, any information regarding the transportation of clients in the business as well as display at a prominent place of the establishment any circular and bring to the attention of the clients any directives of the Organisation, whenever requested;

The entrepreneur or manager of the hotel establishment may refuse entry to clients who refuse to complete and sign the registration card.

The Manager of the hotel establishment (Section 11.20)

The Manager is in charge in every hotel establishment and must have the minimum qualifications required for every category and class in accordance with the relevant provisions of the Law. The management may be carried out by the entrepreneur or a physical person if he has the necessary qualifications.

Services provided to clients (Regulation 49,59,67,68 ect. Article 15A)

The Manager of a hotel establishment and its staff must be polite with the clients and show willingness and eagerness in the execution of their duties. Every hotel establishment must, if in operation, be open for business and have a reception service on a twenty-four hour basis.

A card must be displayed at a prominent place in every room in which the number of the room or apartment, the number of beds, and the price approved by the Organisation be written as well as any other information prescribed by the Organisation.
Every hotel establishment depending on its class and capacity must employ the necessary number of staff with the appropriate specialisation to provide a satisfactory level and standard of service to the clients and in general for its smooth operation.

The hotel establishment shall among other matters be responsible for the following:

Providing services and amenities offered and advertised by the Organisation;

Daily cleaning of rooms and the supply of toilet paper and soap;

Perfect hygiene and appearance of the linen and utensils used provision of clean sheets and towels to every client.

Replacement of towels and bed linen should be as follows:

Daily as regards five star hotels and luxury tourist establishments;

Every two days as regards four and three star hotels and Class A tourist establishments;

Every three days as regards one star and two star hotels, Class B and C tourist apartments and traditional buildings;

Disinfection with suitable sprayers of all the areas of the business;

The explotation and transformation of the uncovered unused area of the building site of the business with the creation of green and gardens and their maintenance into a clean and pleasant condition;

The allocation of rooms by the establishment in such a way in order to avoid overbooking of rooms beyond the hotel's capacity and the practice of stop sales.

It is prohibited for the entrepreneur or Manager to:

Lease rooms or use any areas of the business when the building and its surroundings have not yet been completed;

Publish misleading or false information or material regarding the establishment;

Refuse to offer rooms in order to satisfy the needs of internal tourism, when there are available rooms on the day when the client requests to reserve a room;

Receive greater sums or give discounts beyond those approved by the Organisation;

Lease or sub lease to persons unknown to the establishment restaurants or other categories of catering & entertainment establishments which are possibly in operation within the hotel establishment.

Other Associations

Cyprus Hotel Association

P.O. BOX 24772

1303 Nicosia

Telephone: + 357 22 452820

Fax: +357 22 375460

Assosiation of Cyprus Tourist Enterprises

P.O. BOX 20958

1665 Nicosia

Telephone: + 357 22 374433

Fax: +357 22 374466

Cyprus Hotel Managers Association

Telephone: +357 22889890

Fax: +357 22667593

Source PSC

Last Updated 24 January 2017

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