Valencia joins Barcelona, Madrid and the Canary Islands in limiting tourist rentals

Valencia joined Barcelona, Madrid and the Canary Islands in limiting tourist rentals to combat mass tourism and record house pricing for residents.

After increasing demonstrations urged the government to take measures, Barcelona´s mayor stated that he would shut down more than 10,000 tourist flats in the city.

How Valencia will limit tourist rentals

Valencia´s head of tourism Nuria Montes announced that the regional government will now fine homeowners as much as €600,000 for renting rooms to tourists short-term. The government is now alerting platforms that they need to remove these types of rentals. Moreover, all short-term apartments will have to offer 24-hour reception service and internet access, with all tourism rentals acquiring a five-year license to operate.

Why Valencia is limiting tourists

According to Montes, tourist rentals in Valencia have surged 170 per cent from 2015; the number of registered tourist rentals has more than doubled since then, now reaching at least 105,111.

As a measure to give back power to the residents, Valencian president, Carlos Mazon promised to control the housing crisis, stating that short-term rentals have “damaging effects which, in the case of tourist apartments, could create social problems, a drop in housing supplies and the consequent increase in prices.”

Although it is already prohibited to rent out individual rooms, the government recently found a platform for renting out around 5,000 rooms which were rented illegally.

With the increase in short-term rentals, long-term rentals are becoming extremely difficult to find, especially in urban centres. According to a study from the University of Valencia´s Institute of Housing, the city has a deficit of approximately 20,000 rental units.

The local government is aware of the importance of tourism in the city; tourism in Valencia accounts for 13 per cent of total GDP, according to CaixaBank Research.

Hence, aiming to find a balance between economic benefits and economic losses of tourism, Carlos Mazon stated; “With this legal framework, we provide security and certainty, and we move forward in our model of sustainable tourism that does not renounce anything or condemn anyone.”

How Madrid and the Canary Islands have limited tourists

Since April, the Canary Islands have been implementing the Law on Sustainable Management of Tourism Accommodation, in which 90 per cent of the residential buildable area is used as a permanent residence. Meanwhile, in Madrid, the granting of new licenses to tourist apartments is completely prohibited until 2025.