In a bid to safeguard the local community from being displaced by holiday rentals, Palma de Majorca, a favored vacation spot for British travelers, is taking action to restrict the proliferation of new holiday rental properties.
Local authorities in Palma de Majorca are set to implement measures aimed at increasing housing availability for residents facing housing challenges. While licensed apartment holiday lets have been banned for some time, the authorities are now extending the prohibition to include houses and villas.
Councilor Óscar Fidalgo emphasized the necessity of this decision, considering it a fair and timely move to shield island residents from soaring property prices. Fidalgo expressed concerns over the unprecedented growth of holiday rentals, highlighting the strain it puts on the integration between tourists and locals.
Majorca Daily Bulletin reported Fidalgo’s statement that the expansion of tourist accommodations diminishes residential availability, complicates inspections, and fosters fraudulent activities, necessitating enhanced inspection capabilities. Fidalgo stressed the importance of urban sustainability and neighborhood coexistence, emphasizing the need to protect communities and prevent resident displacement.
A technical report from the town hall concluded that Majorca is unsuitable for new holiday rental properties. In a recent crackdown, over 8,000 illegal Airbnb listings in Majorca were removed, eliminating more than 40,000 illicit tourist beds, as part of a joint effort between Airbnb and Spanish authorities to reduce the number of active rental properties.
Penalties for running unlicensed holiday lets in Palma de Majorca are severe, with landlords facing fines up to €40,000 (£34,700) and a team of inspectors ensuring compliance. To facilitate reporting of rule-breakers, the government has established an online reporting platform for the public.
Following regulatory changes to alleviate the housing crisis, the number of homes listed for holiday rentals in May decreased by 6% from the previous summer to 1.43 million, based on data from the National Statistics Institute. Affordable Majorca campaign group highlighted a significant 40% increase in rents in Palma since 2013.
Palma de Majorca’s decision aligns with other destinations’ efforts to regulate tourism activities. Formentera in the Balearics recently banned nearly 700 beach loungers and ordered the removal of 339 parasols, with the restriction effective until 2029.
Approximately 2.3 to 3.6 million British tourists visit Mallorca annually, with the UK ranking as the second-largest source of international visitors, accounting for about 20% to 26% of tourist traffic, trailing behind Germany, according to Road Genius.