Cyprus lost more than €5 million in unpaid fees for yacht berthing sites

The state has lost more than €5 million because operators of six berthing sites for pleasure craft have not paid the required fees. The report by the Audit Office of Cyprus was discussed by the parliamentary oversight committee.

Sites for berthing facilities were allocated in 2018 in Peyia, Alaminou, Cha Potami, Pachyammos and Softades. Each site is designed to accommodate 150 pleasure craft, while the annual fee for one location ranged from €75,000 to €262,000.

The recipients asked for payments to be suspended until all the necessary permits were issued. In 2021, the Law Office considered it ruinous and unconstitutional to collect fees before licensing. Since then, none of the sites has become operational, although eight years have passed since they were allocated.

The auditors point out that while the state receives no fees and cannot manage the waters, the applicant acquires rights with economic value. In two cases, the licences were transferred to other companies. A 2023 bill on reduced fees during the construction period has still not been submitted to parliament after three years.

MPs called the situation a scandal. “Another major scandal, indicative of governance under Anastasiades and Christodoulides,” said Christos Christofides (AKEL). The deputy ministry of tourism noted that none of the berthing sites is operational yet, while current legislation does not allow sanctions to be imposed.

The Audit Office recommends submitting the bill to parliament, introducing reduced fees during construction, setting deadlines for reserving the waters and providing for the right to withdraw sites from investors who fail to meet the deadlines.