Impact of Airbnb on housing shortage highlighted by Cyprus Tourist Association

The Cyprus Tourist Enterprises Association (Stek) warns that Airbnb-style rentals are worsening housing shortages. Stek highlights the risks for hotels and the need for regulations.

The Cyprus Tourist Enterprises Association (Stek) recently voiced concerns over the unregulated proliferation of short-term rentals, particularly through platforms like Airbnb, which is leading to a surge in tourists flocking to occupied regions and posing "uneven risks" to the hotel industry.

In an official statement, Stek underscored the mounting challenges faced by the legitimate hotel sector in Cyprus due to the unchecked surge in short-term property rentals and the inflow of visitors into the occupied territories.

With regards to short-term property rentals, including those facilitated by Airbnb, Stek emphasized its deep apprehensions, pointing to an ongoing surge in unfair competition.

"On one hand," the association highlighted, "there exists a multitude of accommodations that remain unregistered within the designated registry, essentially operating without any oversight, potentially infringing on legal and taxation requirements."

"On the other hand," Stek continued, "there are properties listed in the registry that offer hotel-like services while evading requisite fees, taxes, proper licensing, and sidestepping the standard operational protocols adhered to by hotels."

Furthermore, Stek highlighted that the influx of residential properties into the short-term rental market has exacerbated the shortage of properties available for purchase, especially for long-term rental purposes. This scarcity has subsequently contributed to a consistent escalation in property prices and rental rates.

This prevailing trend has spurred numerous European cities to implement stringent regulations on the sector, ranging from limitations on permissible rental durations to complete prohibitions on short-term rentals within specific zones.

Stek firmly believes that it is "imperative for the government to confront this issue with seriousness and resolve," urging relevant authorities to initiate an exhaustive analysis without delay.

The association asserted that this study should "precisely evaluate the magnitude of the predicament while concurrently offering tailored recommendations to address the matter."

The impact of Airbnb-style rentals on Cyprus' housing issue is a concern that Stek is raising. Hotels are feeling the pinch, and putting some rules in place could help solve this.