The Spanish government has recently taken a firm stance against Airbnb, signalling that the country's economy and housing market are not a "free for all" where profit trumps regulation, a minister has said.
Last month, authorities ordered Airbnb to remove almost 66,000 holiday rentals from its platform, citing violations of local regulations. These violations included failing to list license numbers, listing incorrect numbers, or not specifying the apartment's owner. Airbnb is currently appealing the decision.
Spain, a popular global tourist destination, hosted a record 94 million international visitors last year. However, cities like Madrid and Barcelona are grappling with housing affordability issues, leading to increased resentment towards short-term holiday rentals, with Airbnb being a primary target of criticism.
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 AP. “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 properties owned by nonresidents, 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," Bustinduy said. “It cannot jeopardize the constitutional rights of the Spanish people. Their right to housing, but also their right to well-being.”
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 neighborhoods” at a recent march in Madrid point to the growing anger.
“A balance must be found between the constitutional rights of the Spanish people and economic activities in general," 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.
Airbnb said that while its appeal goes through the courts, no holiday rentals would be immediately taken down from the site.
In response to Spain's order, Airbnb has said the platform connects property owners with renters but it doesn't have oversight obligations, even though it requires hosts to show that they are compliant with local laws.
Bustinduy said 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,” Bustinduy said. “The digital nature of these extraordinarily powerful multinational corporations must not be an excuse to fail to comply with democratically established regulations.”
Bustinduy, who belongs to the governing coalition's left-wing Sumar party, 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.
The minister also took a shot at low-cost airlines. Spain has pushed against allowing such airlines to charge passengers for hand baggage. Last year, it fined five budget airlines, including RyanAir and easyJet, a total of $179 million for charging for hand luggage.
“The principle behind these actions is always the same: preserving consumer rights,” Bustinduy said. “Powerful corporations, no matter how large, have to adapt their business models to existing regulations.”
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