Approximately one-third of short-term rental properties promoted on platforms such as Airbnb operate unlawfully, as they are not registered with the Ministry of Tourism.

According to data provided to the Parliamentary Committee on Commerce, of the 8,248 properties registered, a significant number remain unregistered, and the Ministry has initiated only 14 prosecutions against these illegal operators.

Despite ongoing efforts to promote regulatory compliance, numerous challenges remain. The count of legally registered properties has grown considerably—from 2,343 at the end of 2022 to 8,248 by 2025. Nonetheless, the Ministry struggles to uphold regulations effectively due to limited legal mechanisms. Additionally, an extensive backlog of pending registrations is concerning, with more than 1,200 properties awaiting approval due to incomplete documentation.

In response to these issues, the Ministry is deliberating the introduction of limitations on the quantity of properties an individual can register. Moreover, a new legislative bill is under development to remedy deficiencies in the current regulatory framework. However, industry bodies such as the Self-Catering Accommodations Association express concern that the persistent increase in unlisted properties during peak tourist periods poses unfair competition for compliant businesses. Many legitimate operators contend that these unlawful accommodations facilitate tax evasion, diminish government revenues, and skew market dynamics.

Consumer protection emerges as a critical issue as reports of misleading property listings, substandard rentals, and non-existent accommodations being rented surface. The Consumers’ Association has documented numerous complaints related to fraudulent activities, with customers incurring financial losses and facing disrupted travel plans. These grievances have heightened pressure on the Ministry to adopt stricter monitoring and enforcement protocols.

In spite of these hurdles, the Ministry remains hopeful about the tourism sector’s robust expansion in 2025, with forecasts predicting unprecedented visitor numbers and revenue. Nonetheless, demands for tighter oversight are intensifying. Members of the Parliamentary Committee have called on the Audit Service to perform an exhaustive investigation into the magnitude of illegal rentals, arguing that infrequent inspections have worsened the situation.

As the short-term rentals market expands, authorities face the challenge of balancing tourism benefits with regulatory needs. While more stringent measures are under consideration, effective enforcement will be crucial to ensure fair play, safeguard consumers, and prevent tax evasion. The forthcoming years are likely to determine whether these interventions bring substantial improvements or if the issue of unlawful rentals continues to linger.