Cyprus is implementing a stringent new water pricing policy that is disproportionately impacting its golf courses, compelling them to shoulder significantly higher costs for a resource now viewed as increasingly precious. The Water Development Department (WDD) has initiated a phased withdrawal of water supply from state dams to these leisure facilities, a move designed to ensure all water consumers contribute equitably to the upkeep of the island's finite water reserves. This policy shift, driven by environmental imperatives and the looming threat of European Union sanctions, is pushing golf courses towards alternative, and more expensive, water sources.
The rationale behind this policy recalibration, which has been in motion since 2005, is multifaceted. A 2017 piece of legislation aimed at safeguarding the island's water tables underscored the urgency of a more sustainable approach to water management. Consequently, since the recent green tax reforms in 2025, golf courses have seen their water tariffs escalate dramatically. The WDD asserts that the current pricing structure reflects the true cost of water resource maintenance, stating unequivocally that "water can no longer be viewed as 'granted and free.'" This sentiment is echoed by departmental sources who emphasise the imperative of a universal application of the law, warning that "The application of the law must be universal. Cyprus risks European sanctions if it does not apply pricing policy equally."
The financial burden on golf courses is starkly evident when contrasted with other water-intensive sectors, particularly agriculture. While farmers utilising private boreholes incur a nominal fee of €0.01 per cubic meter, and those drawing from government projects pay €0.17 per cubic meter, golf courses now face substantially higher rates. Fees for water extracted from government water projects have been adjusted from €0.36 to €0.42 per cubic meter. Furthermore, an "environmental and resource fee," a crucial component of the new policy, has quadrupled, rising from a modest €0.02 to €0.08 per cubic meter for these facilities.
The WDD attributes the substantial water bills experienced by some golf courses not to exorbitant tariffs per se, but rather to the sheer volume of water they extract. Complaints regarding high bills are being addressed by the department, which contends that the significant consumption, particularly from underground aquifers, is the primary driver of these costs. This increased scrutiny and financial pressure necessitate a strategic pivot for golf course operators, including prominent establishments like Minthis Hills, Elea Estate, Limassol Greens, Aphrodite Hills, and Secret Valley, predominantly located in the Paphos region.
By May 2026, the supply of water from state dams to all golf courses will be permanently discontinued. This impending deadline compels these facilities to accelerate their transition to alternative water provisions, such as recycled wastewater or desalinated water. While these solutions offer a path forward for maintaining their operations, they invariably come with a higher operational expenditure. The long-term implications of this policy are a recalibration of the economic model for golf tourism in Cyprus, with water costs becoming a more significant factor in the overall viability of such ventures. The island's commitment to sustainable water management, while essential, is undeniably reshaping the landscape for its premium leisure industry.