1. REPUBLIC OF CYPRUS 54 of 1969 50 of 1977 48 of 1978 62 of 1979 66 of 1980 63 of 1981 16 of 1985 34(I) of 1995 3(I) of 1997 19(I) of 1999 35(I) of 2005. THE CYPRUS TOURISM ORGANIZATION LAWS 1969 TO 2005 (English translation and consolidation) Office of the Law Commissioner Nicosia, December, 2005 Provisionally released by the Office of the Law Commissioner ΓΕΝ (Α) L.... NICOSIA
2 THE CYPRUS TOURISM ORGANIZATION LAWS, 1969 TO 2005 ARRANGEMENT OF SECTIONS PART I.- PRELIMINARY Section 1. Short title 2. Interpretation PART II.- ESTABLISHMENT AND OBJECT OF THE ORGANIZATION 3. Establishment of the Organization 4. Object of the Organization PART III.- ADMINISTRATION OF THE ORGANIZATION 5. Board of Directors 6. Director General 7. Services of the Organization 8. Ministerial supervision PART IV.- FUNCTIONS OF THE ORGANIZATION 9. General functions of the Organization 10. Supervising functions of the Organization 11. Business activities of the Organization 12. Tourist programme PART V.- FINANCIAL PROVISIONS 13. Fund 14. Loans 15. Estimates
3 16. Subsidies and Assistance 17. Financial operation 18. Audit of accounts PART VI.- GENERAL 19. Exemption from taxation 20. Representation of the Organization 21. Regulations 22. Transitional provisions 23. Entry into force of this Law
4 No. 54 of 1969 54 of 1969 50 of 1977 48 of 1978 62 of 1979 66 of 1980 63 of 1981 16 of 1985 34(I) of 1995* 3(I) of 1997 19(I) of 1999 35(I) of 2005. Short title. Interpretation. A LAW TO PROVIDE FOR THE ESTABLISHMENT AND FUNCTIONING OF A CYPRUS TOURISM ORGANIZATION [25 th July, 1969.] The House of Representatives enacts as follows: PART I.- PRELIMINARY 1. This Law may be cited as the Cyprus Tourism Organization Laws, 1969 to 2005. 2. -(1) In this Law unless the context otherwise requires- «Board of Directors» or «Board» means the Board of Directors of the «Minister» means the Minister of Commerce and Industry. «Organization» means the Cyprus Tourism Organization established under section 3 of this Law. «Regulations» means the Regulations made under this Law. 40 of 1969 52 of 1970 17 of 1973 34 of 1974 28 of 1985 42(I) of 1993 80(I) of 1995 16(I) of 1999 68(I) of 1999 91(I) of 1999 170(I) of 2000. (2) Any other expression, not specifically provided in sub-section (1) shall have the meaning assigned to it by the Hotels and Tourist Establishments Laws, 1969 to 2000. PART II ESTABLISHMENT AND OBJECT OF THE ORGANIZATION Establishment of the Object of the Organisation. 3. There is hereby established an Organization to be known as the «Cyprus Tourism Organization» which shall be a body corporate having all the attributes of a body corporate and shall be governed by this Law. 4. -(1) The object of the Organization shall be the organization and promotion of tourism in the Republic by making full use of all existing possibilities. (2) For the purpose of achieving this object, it shall be the duty of the Organization to provide for: (a) the preparation and implementation of a plan for the tourist development of the Republic as well as for the making and submission of proposals for legislative and administrative changes in relation to the development of the tourist industry; * See Note at the end of the text.
5 (b) the monetary and general financial benefit of the Republic to be secured by the maximum possible attraction of foreign visitors to the Republic, the prolongation of the tourist season and of the time spent by visitors in the country; (c) defining and developing the tourist areas of the Republic within the framework of the general town and country planning scheme, as well as the taking of all steps towards their development; (d) the development of tourism within the Republic among wider, as far as possible, sections of the population of the Republic and the consequential development of cultural and financial relations; (e) the taking of all other steps for promoting its objects. PART III - ADMINISTRATION OF THE ORGANIZATION Board of Directors. 5. -(1) There shall be in charge of the Organization the Board of Directors. The Board shall govern the Organization, manage its assets and its resources and represent it before every authority. (2) In particular the Board shall have the following functions:- (a) to make suggestions on the general scope of the tourist policy of the Republic, prepare and readjust the tourist programme and indicate the steps to be taken for its implementation; (b) to prepare quarterly as well as annually at the end of each year, a report on the work done by the Organization for submission to the Minister; (c) to study and make suggestions on bills submitted in relation to tourist development and the draft regulations made thereunder; (d) to approve the annual estimates of the Organization; (e) to appoint the employees of the Organization and to exercise on them (including the Director-General) disciplinary control; (f) to decide on all matters of general importance as well as on the financial acts of the Organization which are of particular importance in accordance with the provisions of the Regulations; (g) to prepare and suggest to the Minister all matters within the sphere of his competence in respect of tourism; (h) to decide on all matters connected with the administration and management of the Its functions on these matters may be delegated, by resolutions of the Organization, to the Director-General or other senior officers of the 2(a) of 3(I) /97. (3) (a) The Board of Directors shall be composed of nine members appointed by decision of the Council of Ministers for a period not exceeding three years. By this decision the Chairman of the Board shall be appointed by the members. The Council of Ministers may, at any time, terminate the term of office of any member. (b) The members of the Board of Directors shall be selected, as far as possible, from among persons possessing knowledge of or experience in matters of the tourist industry. Out of these, three may belong to the public service.
6 (4) The Chairman and other members of the Board of Directors may receive such remuneration as may be determined by the Council of Ministers. (5) The Director-General shall take part at the meetings of the Board of Directors but shall not be entitled to vote. 2 of 48/78 2 of 16/85. 2 of 16/85 2(b) of 3(I)/97. (6) The Board of Directors may delegate its powers to the Director-General or to Committees composed of its members, in which the Director-General and or other Officers of the Organization may participate. The Board of Directors may also form advisory Committees constituted by persons representing Organizations, connected with the tourist industry or other persons and or officers of the (7) The majority of the total number of members shall form a quorum at meetings of the Board of Directors as well as at meetings of Committees constituted pursuant to subsection (6). (8) All matters relating to the meetings and functioning of the Board of Directors shall be governed by resolutions of the Board. (9) Any vacancy existing on the Board of Directors shall not affect the validity of its decisions. Director - General. 2 of 35(I)/2005. 6. -(1) (a) There shall be in charge of the Services of the Organization the Director-General, who shall be the supreme executive body of the (b) The Director-General shall be chosen and appointed, following a decision of the Board of Directors on a five-year contract, which shall be governed by the relevant Scheme of Service and any conditions which the Council of Ministers may determine. (c) The decision of the Board of Directors for the appointment of the Director-General shall be submitted to the Council of Ministers for approval. (d) The Council of Ministers must deliver a duly reasoned decision, pursuant to paragraph (c), in case of non approval of the decision of the Board of Directors. (2) The Director-General shall exercise the following functions: (a) he shall be in charge of the services and officers of the Organization and direct their work; (b) he shall prepare and submit to the Board of Directors for consideration and approval the tourism plan, the estimates and annual progress report, the periodical progress reports provided by the preceding section, and every other subject falling within the competence of the Board; (c) he shall carry out the plan approved by and shall comply with the decisions of the Board of Directors within the limits laid down by it for the time being; (d) he shall exercise every function delegated to him in accordance with general or special resolutions of the Board of Directors. 2 of 35(I)/2005. Services of the (3) (Repealed). 7. -(1) The structure of the services of the Organization and the posts shall be prescribed by Regulations made by the Board of Directors with the approval of the Council of Ministers.
7 (2) For every post the Board of Directors shall prepare a scheme of service, which, shall be approved by the Council of Ministers. (3) The general conditions of service of the officers of the Organization and the exercise of disciplinary control over them shall be prescribed. Ministerial supervision. 8. -(1) In addition to the cases specifically provided in this Law for the exercise by the Minister of competence to make decisions in respect of the Organization, the following powers are also conferred on the Minister:- (a) to supervise the functioning of the Organization and to exercise preventive control, pursuant to the directions of the Council of Ministers, over the managerial acts of the Organization which are of particular importance, and he shall be entitled to alter or annul the same; (b) to give to the Organization directions of a general nature regarding the exercise of its functions which are necessary for the general interest of the Republic, and the Board of Directors shall be bound to carry out such directions; (c) to require the Board of Directors to furnish to him any reports, accounts and other information in relation to the assets of the Organization and the activities of the Board of Directors and the Board of Directors shall be bound to furnish him with anything which the Minister may require by virtue of this paragraph and afford every facility for its verification; 3 of 3(I) /97. (d) to be present at meetings of the Board of Directors whenever he considers it necessary in which case he shall preside over such meening. He may also monitor the meetings through the Secretary-General of the Ministry or other representative thereof. PART IV. FUNCTIONS OF THE ORGANIZATION General functions of the 9. -(1) Subject to the provisions of this Law, it shall be the duty of the Organization:- (a) to secure favourable conditions for the entry, stay and travelling of visitors in the Republic and the constant improvement in the quality of the services provided for them; (b) to promote tourist establishments and places in the areas of the Republic which are suitable for the stay of, or touring by, visitors and the establishment and operation therein of suitable and adequate tourist establishments, that is to say, hotels and establishments of every other kind as well as restaurants and places of entertainment which will provide services, amenities and comforts of the appropriate standard; (c) to organise congresses and international meetings and conferences of all kinds, as it may deem fit; (d) to organize festivals for the purpose especially of emphasizing and depicting local colour, as well as visits and excursions to places of interest in the country; (e) to advertise folk art and arrange for articles produced to be provided to visitors; (f) to advertise, from the tourist point of view, the Republic abroad as well as locally;
8 (g) to promote the excursionist and holiday movements among the population of the Republic; (h) to cultivate the tourist conscience of the people; 2 of 66/80. 2 of 66/80. (i) to regulate the prevention and avoidance of pollution of tourist areas; (j) as for any other matter related directly or indirectly with the tourist development of the Republic. (2) The Organization shall have power, for the purpose of carrying out its objects, to acquire compulsorily immovable property in accordance with the provisions of the Law in force for the time being relating to compulsory acquisition for purposes of public benefit. Supervising functions of the 10. -(1) For the purpose of securing conditions of spotless appearance and the provision of tourist services of a satisfactory standard, the Organization shall exercise supervision over all tourist industries operating in the Republic or industries directly or indirectly serving the tourist trade and over all persons professing tourist trades, in accordance with existing specific statutory provisions concerning the same. (2) In particular, the Organization shall exercise supervision over- (a) all kinds of tourist hotel industries of the Republic; (b) tourist and travel agencies; (c) tourist guides; (d) what are termed «tourist» restaurants, confectioneries and other places of entertainment; (e) retail traders carrying on business at tourist spots and transport stations, porters and other persons offering small services. (3) The Organization shall also- (a) follow up, direct and control the activities of associations in the Republic pursuing, according to their rules, objects mainly connected with tourist development and excursions; (b) exercise supervision over the organised excursionist movement in the Republic through establishments which are specially recognised as tourist associations; (c) exercise supervision, in co-operation with the other appropriate organs or authorities, on the manner of use of the tourist spots of especial importance, excepting archaeological spots, in order to avert damage to the aesthetic values of the landscape and to prevent the disposal, in whole or in part, of any of such spots for works impeding their use for purposes of tourism. 3 of 48/78. (4) For the purposes of subsections (1), (2) and (3) of this section as well as of section 9, the Organization shall have the power, subject to the provisions of this Law and without prejudice to any other provisions thereof, to proceed with any step or action which is required for the execution of duties assigned to it and in particular shall have the authority- (a) to do any act which it deems proper for the prevention and avoidance of pollution of tourist areas; (b) to give directions, circular guidelines or notifications which aim at the promotion of the flow of tourism; and (c) to do any related or associated activities, which shall be helpful and necessary for the realisation or promotion of the objects of the
9 Business activities of the 11. -(1) Notwithstanding the powers conferred on the Organization by the provisions of the foregoing sections, the Organization may, with the special approval of the Council of Ministers obtained from time to time, undertake the construction and operation of hotels of all types as well as of any other tourist premises and establishments and to engage in any other business activity aimed at promoting its objects, either by itself or in co-operation with any other body corporate or person. (2) In the course of such activity as aforesaid, the Organization is free to lay down the course of action indicated in each particular case in accordance with the rules of private finance and to carry out any transaction as if it were a private businessman. (3) There shall be prescribed all matters relating to the business activities of the Organization, and to the purchase, sale, lease and exchange of immovable property or the acquisition of any other rights on immovable property. Tourist programme. 12. -(1) The organizing of tourism in the Republic shall proceed on the basis of a plan of works and activities, which shall be drawn up and modified by the Organization, within the framework of the annual and long-term plan for the economic development of the Republic. (2) By this plan there shall be specified, within the existing financial potential of the Republic, the particular projects of the Organization in every field, there shall be pre-estimated the required expenditure and there shall be laid down the order, the time and the manner for their realization. (3) This plan shall be approved by the Council of Ministers. PART V. FINANCIAL PROVISIONS Fund. 4(a) of 48/78 2 of 63/81. 40 of 1969. 4 of 1977 67 of 1979 9(1) of 1999. 91 of 1979* 1 13. -(1) The Organization shall have a separate fund in which there shall be paid- (a) the grants by the State; (b) the profits realized from its business activities pursuant to section 11 of this Law; (c) the earnings from the management of its assets; (d) the donations made to the Organization; (e) the fees to be collected from the granting of licences; (f) the amount of any loan raised by the Organization; (g) fines or other monetary penalties imposed and collected in accordance with the Hotels and Tourist Establishments Laws and Regulations and the Tourist Occupations and Associations Law and Regulations made thereunder the Regulation of Marinas Law and Regulations made thereunder, the Tourist Establishments Laws and Regulations made thereunder, as well as the Cyprus Tourism Organization Laws and Regulations made thereunder; and 5 of 1980* 2 7 of 1981. 54 of 1969. * 1 The Tourist Establishments Law, 1979 (L.91/79) was repealed, with some reservations, by the Catering and Entertainment Establishments Law, 1995 (Law 29/85). * 2 The Tourist Occupations and Associations Law, 1980 (L.5/80) was repealed by the Tourism and Travel Offices and Tourist Guides Law, 1995 (L.41(I)/95).
10 4(a) of 48/78. 4(b) of 48/78. (h) any other income given to the Organization or collected by it or any other member of its staff. (2) Out of the fund of the Organization there shall be paid: (a) all salaries of the members of the Staff of the Organization and the remuneration of the members of the Board of Directors; (b) the payment of interest and principal of any money borrowed by the Organization in general any other sum lawfully due by the Organization; (c) for the saving of adequate funds for the substitution of the assets used by the Organization; (d) for the saving of general and other reserves which may be invested or distributed with the approval of the Minister of Finance; (e) generally the payment of any other sum owed by the Organization. (3) Any money of the Organization not immediately required for the lawful payment by it may be invested in such manner as the Minister of Finance may deem fit. Loans. 14. -(1) The Organization may, for the purpose of furthering its objects, raise loans under such terms and from such source as the Council of Ministers shall determine. (2) The Government may guarantee, in such manner and on such terms as it shall deem fit, the payment of any loan raised by the Estimates. 3 of 16/85. 15. -(1) Before the commencement of each financial year the Organization shall prepare its Estimates, which shall be submitted to the Minister for approval. (2) The Organization shall submit to the Minister immediately after the close of each financial year, the final accounts for the year ended and a report of its activities during the financial year. (3) The financial year of the Organization shall commence on the 1 st January and shall end on the 31 st December of each year: Provided that the first financial year of the Organization shall commence on the date of the coming into operation of this Law and shall end on the 31 st December of the following year. Subsidies and Assistance. 16. -(1) Funds out of those entered in the Budget of the Organization may be placed at the disposal of Government Services, Authorities or Organizations for the execution by them, under the supervision of the Organization, of works conducive to tourist development. (2) Similar funds may likewise be placed at the disposal of, and for the assistance of Organizations, associations or enterprises for the promotion of their tourist activities. Financial operation. 17. There shall be prescribed: (a) all matters regarding the keeping of the Accounts of the Organization; (b) the manner of verification and collection of the income of the Organization;
11 (c) all matters regarding the undertaking of liabilities on behalf of the Organization and the mode of authorisation, incurring and verification of its expenditure; (d) all matters regarding the investment of moneys of the Organization not required for its functioning; (e) all matters regarding the book-keeping system and the system of managing the funds, material and property of the Audit of accounts. 2 of 50/77. 18.-(1) The accounts, the balance-sheet and in general the financial administration of the Organization shall be audited by auditors appointed by the Council of Ministers. (2) Detailed audited accounts of the Organization, together with the report of the auditors, shall be submitted the soonest possible to the Minister, who shall forward a copy of same to be submitted before the House of Representatives for briefing. (3) The audit expenses shall be paid by the PART VI.- GENERAL Exemption from taxation. 2 of 136(1)2002.* Representation of the Regulations. 2 of 19(I)/99. 2(a) of 62/79. 2(b) of 62/79. 19. The Organization shall be exempted- (a) (Repealed). (b) from the payment of any stamp duties payable under the legislation for the time being in force relating to stamp duties. 20. The Chairman of the Board of Directors shall represent the Organization in all its relations with other persons or bodies and before any Court, and he shall sign on its behalf every contract entered into by the 21. -(1) The Council of Ministers shall make Regulations for the better carrying into effect of the provisions of the Law and for prescribing anything which under the provisions thereof is required to be, or may be prescribed: Provided that the Regulations made under this section and which relate to matters or regulate matters of personnel including the terms of service and evaluation of the personnel, may have a retroactive effect and ratify acts or actions which were made before their issue and after the time of commencement of their effect. (2) Regulations made under this section may provide that failure to comply therewith shall constitute an offence punishable with imprisonment not exceeding six months or with a fine not exceeding three hundred pounds or with both such penalties. (3) Regulations made under the provisions of this Law shall be laid before the House of Representatives. If within twenty-one days of such laying the House of Representatives does not by resolution amend or annul, in whole or in part, the Regulations so laid, they shall then, soon after the expiry of the period hereinbefore mentioned be published in the Official Gazette of the Republic and they shall come into force as from such publication. In the event of their amendment, in whole or in part, by the House of Representatives, such Regulations shall be published in the Official Gazette of the Republic as amended by the House and they shall come into force as from such publication. *Section 19(a) of the principal law has been repealed by the Tax Exemption (Repeal) Law, 2002 (L.136(1)/2002), which came into force on the 1 st of January, 2003.
12 Transitional provisions. Entry into force of this Law. 22. The ownership or possession of any of the hotels or other tourist establishments existing at the date of the coming into operation of this Law, which belong to the Republic may, by decision of the Council of Ministers, be transferred or given to the 23. This Law shall come into operation on a date to be fixed by notification of the Council of Ministers to be published in the Official Gazette of the Republic. Different dates may be fixed regarding the date for the coming into operation of the different sections of this Law. NOTE Section 2 of the Cyprus Tourism Organization (Amendment) Law, 1995 (L. 34(I)/95) contains the following special provision: «Special 2. Notwithstanding any other provisions of the principal law or the regulations made provision. thereunder, the Organization may appoint on a permanent basis a person who is not a Cypriot citizen so long as it is a spouse or child of a Cypriot citizen of the Republic, has his ordinary residence in the Republic and satisfies all remaining conditions of this Law.».