Tourism is regarded as a major growth industry for the TRNC and in order to increase tourist numbers, the government provides incentives to tour operators for each tourist brought into the country.
However tour operators are complaining that these incentives are not being paid and are therefore withholding payment to hotels.
Lapethos Hotel coordinator, Serhat Apagun has stated that this has created difficulties for his hotel which is owed TL 1 million.
Mehmet Dolmaci, owner of Manolya Hotel says that the government should be as prompt with payments as it is with tax demands.
The director of the Malpas Hotel, Fahri Altinor agrees, saying that his hotel is also owed TL 1 million.
Hoteliers point out that the whole payment system is the responsibility of one civil servant. If he is ill or on leave, the whole process is delayed. Further, they say that during the summer months, this employee is inundated with files relating to each charter flight.