A presentation by Foro Vacacional earlier this year. | @Forovacacional


According to the Foro Vacacional organisation, the new holiday rentals legislation has directly affected more than 6,000 families and will result in a loss of potential business amounting to 527 million euros in global terms next year.

At a conference in Alcudia, the president, Juan Estarellas, who was formerly the president of the Aptur holiday rentals association, described the legislation as a "policy of terror". The reform had come, he noted, at "an ideal time" to ruin a sector that was asking for regulation and not for prohibition. The moratorium on any new licences "doesn't do the sector any favours".

The organisation has presented a report which indicates that there has been a 40% increase in holiday rental demand in Majorca this summer and a rise of 94% in Minorca. Average occupancy of rental properties between September last year and August this year was 65%, and 82% of properties received maximum quality rankings from clients.

Since the new regulations came into force, however, there has been a 30% drop in business. This is leading to a 15% increase in prices for regulated (legal) tourist accommodation, while it is generating an increase in unemployment and is bringing about the closure of businesses and the "ruin" of many families. Estarellas observed that almost 21,000 properties have been affected of which 4,600 are second residences.

The vice-president of the Majorca association of tourist villa holiday businesses, Yolanda Loeffler, said that owners in the association - some 1,400 - are concerned that they will not be able to get new registrations, despite the majority marketing stand-alone properties. Cristina Meca of Fincallorca noted that many owners had undertaken renovations of properties in order to rent them out but are now unable to.

Foro Vacacional is encouraging any owner facing proceedings to appeal against them and claim that the right to lease a property is covered by the Constitution. It also suggests that a change in government after the next election (in 2019) will bring about an amendment to the recent legislation.