The country has introduced a number of measures to tackle overtourism in recent years, including restrictions on short term rentals – but it could come at a high cost
Spain is taking measures to curb overtourism, but it could lead to a staggering £25bn deficit, economists have warned.
In an attempt to address the impact of tourism on local lifestyles, Spanish authorities have introduced several regulations, including local rules controlling short-term rentals. Malaga recently took the bold step of banning new short-term apartment rentals in 43 neighbourhoods deemed “tourist-saturated”, while Barcelona will ban all short-term rentals from 2028.
A study by Oxford Economics, utilising data from Eurostat and Airbnb, suggests that this rule could cost Spain €30 billion, equivalent to over £25 billion. The report also indicates that it could jeopardise 2% of Spain’s GDP and 400,000 jobs within the country.
Rental platform Airbnb criticised Spanish officials for formulating these regulations “without taking into account important considerations”, such as rural or urban settings and whether the activity is occasional or dedicated. In a statement, it argued: “This has resulted in general bans in some cities, broad restrictive regional regulations or excessive bureaucracy that is driving out those who carry this activity on an occasional basis, mainly families, without solving any of the problems,” as reported by Majorca Daily Bulletin.
Airbnb further underscored the positive impact of rental activities on families, rural regions and small businesses. It concluded by arguing that these regulations are being scapegoated for “the scapegoat for the great housing challenges,” that Spain is currently grappling with.
However, various locations in Spain are grappling with the issue of overtourism, which has led to a housing crisis and an 80% surge in rent over the past decade. Airbnb has recognised this issue and is collaborating with governments to alleviate the housing crisis, proposing a regulatory model based on four principles, reports the Express.
Firstly, it suggests a clear distinction between business activities through tourist rentals dedicated solely to short-term rentals and occasional accommodation in family homes. Secondly, it emphasises the importance of a single, free, online registration system that aligns with EU rules.
Thirdly, it advocates for evidence-based, data-driven, proportionate, non-discriminatory and justified rules. Lastly, it proposes regulations tailored to the needs of less frequented and lesser-known areas, such as rural regions, as opposed to the complexities of urban areas, promoting the dispersion of trips throughout Spain.
Rising rents have caused much hardship in Spain, particularly in areas that welcome in a lot of tourists. According to Menorca, “accessing a home in the Balearic Islands has become a practically impossible mission” – in no small part because the average price of a room in a shared flat shot up 17.5% in 2024, ending on 574 euros per month.
The ‘Shared housing in Spain in 2024’ study found that the price of an average room rose from 489 euros per month in December 2023 to 574 euros per month in December 2024. In Spain, only Catalonia, where 636 euros per month are required to rent a room, and Madrid, with 586 euros, are more expensive. Both of those areas have significantly higher average salaries than the Balaerics.
Last year a Majorcan political party announced plans to “degrow” tourism on the Balearic Islands with a 40 per cent cut on tourist accommodation. Més per Majorca tabled strict new measures to the Balearic government in October, designed to significantly reduce overall tourist numbers.
