Every traveller loves holiday rentals, but when they happen to eat up housing space in cities, there’s not much love lost. Last year, over 10,000 Lisbon residents signed a petition for a referendum on banning holiday rentals in residential buildings, followed by other countries like Croatia, cities from Malaga and Barcelona in Spain to Athens and Budapest, in face of a tourism-related housing price crisis.
In fact, last year lawmakers in France’s parliament passed a bill to strengthen short-term rental accommodation to combat the country’s affordable housing shortage. The law affects all short-term and seasonal rental home owners in France, who run cottages and holiday homes.
As these places have clamped down on short-term rentals in an effort to alleviate housing shortages and reduce prices for local people, the latest is Spain’s recent crackdown on Airbnb to remove over 65,000 listings due to housing regulation violations.
Some find this move supportive in face of the country’s escalating housing crisis and negative impact of overtourism on local communities, and acknowledge the need for stricter control in the short-term rental space. On the other hand, many are criticising this move as it may affect local businesses who rely on these rentals for income.
Surging rental prices and housing shortage in popular tourist destinations like Madrid and Barcelona are a major hassle for residents. The increasing number of short-term rentals, especially Airbnb, has contributed to rising rents and a shortage of available housing for residents, forcing them to raise concerns and demand government intervention.
With new regulations and enforcement, the Spanish authorities have asked the landlords to register properties in a national database and obtain permits before listing them on platforms like Airbnb or Booking.com. Non-compliance can result in fines up to €600,000.
While the regulations also aim to protect residents, they affect tourists and the short-term vacation rental industry. Travellers face higher accommodation costs due to reduced availability, and property owners must navigate complex regulatory landscapes.
But overtourism is a significant issue in many such tourist sites, impacting both residents and visitors, leading to overcrowding, infrastructure strain, and increased prices, negatively impacting the quality of life for residents and the overall tourist experience. As a result, several cities in Spain are implementing their own measures to combat overtourism. Media reports claim Barcelona is planning to phase out 10,000 tourist apartments by 2028 to reintegrate them into the long-term housing market; Málaga has imposed a three-year freeze on new tourist rental licences in 43 districts where holiday rentals exceed 8% of available housing. Amsterdam has imposed limits on river cruises and banned the construction of new hotels to reduce congestion, while Dubrovnik in Croatia has capped the number of cruise ships that can dock each day. Entry permits are being timed in US national parks and the Acropolis in Greece to control the number of visitors.
Among other destinations, Venice introduced a day-tripper fee to discourage visitation on peak days; Japan installed a screen to block an Instagrammable view of Mt Fuji.
However, Spain’s crackdown reflects a broader effort to balance the benefits of tourism with the needs of local communities. For instance, some of the global island destinations are facing water scarcity during peak tourist season. Greek islands, like Naxos and Thasos, are experiencing water shortage due to tourism demand.