Spain, the world's second-largest tourist destination, is tightening regulations on the accommodation-sharing platform Airbnb.
On the 19th (local time), Reuters reported that Pablo Bustinduy, Minister of Consumer Affairs of Spain, said, "We will no longer protect those who exploit housing rights for profit," and urged to "remove over 66,000 Airbnb listings."
The Ministry of Consumer Affairs of Spain mentioned that most of the Airbnb listings targeted for deletion either "do not properly specify the license number issued by the Spanish government, or it is unclear whether the owner is an individual or a corporation."
According to major foreign media, major cities in Spain such as Madrid, Barcelona, and Seville are suffering from one of the worst housing crises in Europe.
Short-term rental housing platforms targeting tourists, like Airbnb, are cited as the main culprits of the housing crisis. Real estate owners prefer tourists, who pay significantly higher average daily accommodation fees, over locals who rent and stay long-term.
According to a 2020 study by the University of Barcelona, the average local rental price in Spain rose by 1.9%, and the sale price increased by 4.6% due to Airbnb activities. In the top 10% of areas where Airbnb activities are most active, rental prices soared by 7% and sale prices by 17%.
Since the pandemic began to attract tourists, this trend has accelerated. According to Euronews, rental prices in major tourist cities such as Barcelona and Madrid have skyrocketed by 74% over the past decade. In contrast, the supply of long-term rentals has halved.
Now, young people in Spain are unable to find suitable housing and become independent at an average age of 30.4 years. According to the European Union (EU), this is four years longer than the EU average (26.3 years).
The Organisation for Economic Co-operation and Development (OECD) pointed out that Spain lacks 500,000 dwellings. The European Parliament noted, "40% of Spanish citizens spend more than 40% of their income on housing costs, which is four times the EU average (10.6%)."
Experts evaluate that this measure is a symbolic event showing that the conflict between tourism and housing rights has reached a tipping point, beyond simple regulation violations.
Not only in Spain but also across Europe, Airbnb regulations are intensifying. Barcelona decided to abolish the licenses for 11,101 apartments currently approved for short-term rentals by November 2028. Amsterdam in the Netherlands has implemented a 30-day annual rental limit.
The EU passed the so-called Airbnb law (EU Short-Term Rental Regulation) last year, which mandates that each accommodation register its ID number and rental days with national authorities.
In the financial sector, it is anticipated that the European Union's strong regulatory moves across the sharing economy will negatively impact Airbnb's revenue.
Airbnb has strongly opposed the Spanish government's decision and declared a legal battle.
An Airbnb spokesperson rebutted, "This decision violates EU law and Spanish law, as well as previous rulings by the Spanish Supreme Court," and argued that the root cause of the housing crisis in Spain is the severe lack of supply compared to demand.