The Aviba travel agencies association in the Balearics has added its criticism of the government's decree for tourism containment that will consolidate 90,000 holiday rental accommodation places. The association believes this is a "missed opportunity" to reduce tourism pressure and simultaneously alleviate the housing crisis.
The president, Pedro Fiol, argues that "courage" is required in maintaining a sustainable tourism offer. "Reintroducing these accommodation places into the market, in the midst of a housing crisis and with growing tourist pressure, is a strategic error."
The travel agencies have never been vocal on this issue in the past, but Fiol believes his members need to be forceful and take a stand on one of the most important debates in the Balearics. "We cannot allow our visitors to occupy homes that should be reserved for residents. This increases the market price and turns a basic good into a tourist product."
He feels that certain holiday rentals are a "lure" for visitors who cannot afford to stay overnight in a hotel and that this "generates a low-quality offer". The association is urging the development of a coherent strategy that balances the different accommodation on the islands. "It's not about demonising holiday rentals, but about organising them. 15 years ago we had villas and chalets that were a complement and which didn't distort the market. Today, the situation is unsustainable.
"More accommodation generates more flight demand. And more flights put more pressure on a limited area." This, he argues, creates a vicious cycle that contributes to the islands' overcrowding problems.
As to the housing crisis, Fiol points to speculation and large purchases by investment funds and other major property owners. There is an unstoppable rise in supply aimed at high-net-worth foreign buyers. "In many towns, we see more real estate agencies with signs in foreign languages than in Spanish or Catalan. This reflects who our island is being sold to."
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James JonesNo revenue? I pay the government 19% on every penny generated. All the maintenance, supplies, services, etc. are hired and paid for locally - in the local economy. And I pay 21% VAT on top of all of it. And the tourists that book them? They tend to be quite a bit different breed... a bit more affluent, spending more in the local economy than the average resort hotel-dwelling tourist. And less problematic. But that's not really what this is about. It's about not being able to afford rent on an apartment in Palma, which has precious little to do with tourism and much more to do with demand, economics, and risks of long term rental laws. They just conflate the two for lack of nuance.
So, there's no vested interest here. yeh, right. They get no revenue from private rentals so they don't want them.