Palma.—Over the past few weeks the Majorcan Chamber of Commerce and the island's two main restaurant associations have called on the Balearic government to quickly regulate the residential tourism sector now that Madrid has given the autonomous regions the powers to do so.

It is estimated that three billion euros from rental incomes goes undeclared every year in Spain the government should be looking to recoup that while here in Majorca, the Chamber of Commerce claims that residential tourism accounts for 45 percent of the holiday market that it generates a serious amount of money for the local economy and creates jobs.

The Chamber of Commerce is also concerned that the Balearic Ministry Tourism's slow reaction to the shake up in the law is hampering the region's ability to compete with destinations like France and Italy where residential tourism is booming and encouraged by the authorities.

But, needless to say, the hoteliers are furious.
Yesterday, the President of the Majorcan Hotel federation, Aurelio Vazquez, branded the regulation of the residential tourism sector as a “momentous error”.

He explained that while he is not opposed to residential tourism, it should be considered as a complimentary offer to hotel accommodation. But what he is concerned about now is that “any property can be used for residential tourism.” Hoteliers have been lobbying hard to block any shake up in the residential tourism market but appear to have lost out, although what the Balearic Minister for Tourism actually does remains to be seen, he may well buckle under the weight of the hoteliers.

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