Spanish government says housing market not ‘free for all' after Airbnb crackdown

Irish Examiner

2 days ago

Spain's government wanted to send a message last month with its crackdown on Airbnb: that the Spanish economy and its housing market, in particular, are not a 'free for all' that value profits over the rule of law, a minister said.
The Spanish government ordered Airbnb to remove almost 66,000 holiday rentals from the platform which it said had violated local rules by failing to list licence numbers, listing the wrong licence number or not specifying who the apartment's owner was.
Airbnb is appealing against the move.
Spain is one of the world's most visited countries. Last year, the Southern European nation of 49 million received a record 94 million international visitors.
Tourism has surged to unprecedented levels in recent years. But a housing affordability problem in Spain that is particularly acute in cities such as Madrid and Barcelona has led to growing antagonism against short-term holiday rentals, of which Airbnb is perhaps the best-known and most visible actor.
The Spanish government says the two are related: the rise of Airbnb and other short-term rental companies, and rising rents and housing costs.
'Obviously there is a correlation between these two facts,' consumer rights minister Pablo Bustinduy told The Associated Press.
'It's not a linear relation, it's not the only factor affecting it, there are many others, but it is obviously one of the elements that is contributing.'
A recent Bank of Spain report said the country has a shortfall of 450,000 homes. In the tourist hot spots of the Canary and Balearic Islands, half the housing stock is tourist accommodations or are properties owned by non-residents, the report said.
'Tourism is for sure a vital part of the Spanish economy. It's a strategic and very important sector. But as in every other economic activity, it must be conducted in a sustainable way,' Mr Bustinduy said.
'It cannot jeopardise the constitutional rights of the Spanish people. Their right to housing, but also their right to wellbeing.'
The country has seen several large protests that have drawn tens of thousands of people to demand more government action on housing.
Homemade signs including one that read 'Get Airbnb out of our neighbourhoods' at a recent march in Madrid point to the growing ire against short-term online rental platforms.
Airbnb said that while its appeal goes through the courts, no holiday rentals would be immediately taken down from the site.
'A balance must be found between the constitutional rights of the Spanish people and economic activities in general,' Mr Bustinduy said.
Regional governments in Spain are also tackling the issue. Last year, Barcelona announced a plan to close down all of the 10,000 apartments licensed in the city as short-term rentals by 2028 to safeguard the housing supply for full-time residents.
In response to Spain's recent order, Airbnb has said that the platform connects property owners with renters, but that it does not have oversight obligations, even though it requires hosts to show that they are compliant with local laws.
Mr Bustinduy said that Spain's recent action reflects a desire in Spain, but also elsewhere, to hold tech companies like Airbnb to account.
'There is a battle going on about accountability and about responsibility,' Mr Bustinduy said. 'The digital nature of these extraordinarily powerful multi-national corporations must not be an excuse to fail to comply with democratically established regulations.'
Mr Bustinduy, who belongs to the governing coalition's left-wing Sumar party, also took a shot at low-cost airlines.
Spain has pushed against allowing low-cost airlines to charge passengers for hand baggage. Last year, it fined five budget airlines, including RyanAir and easyJet, a total of 179 million dollars for charging for hand luggage.
'The principle behind these actions is always the same: preserving consumer rights,' Mr Bustinduy said.
'Powerful corporations, no matter how large, have to adapt their business models to existing regulations.'
Mr Bustinduy dismissed the idea that the Spanish government's action toward Airbnb could discourage some tourists from visiting.
'It will encourage longer stays, it will encourage responsible tourism and it will preserve everything that we have in this wonderful country which is the reason why so many people want to come here,' he said.