The Spanish government is putting in place actions to address the sharp increase in the quantity of holiday rentals in tourist areas.
About the situation
Recently, Spanish hotels have been limited in their expansion, but now they are leading the luxury tourism sector due to government efforts. The restrictions imposed on daily rentals help the sector develop.
In detail
Spain, the world's second most visited country after France, received around 95 million tourists in 2024, which is 2 times more than the country's population. Residents complained about numerous short-term rental offers in the summer. This has resulted in implementing actions at the state level.
Since the beginning of the year, bans and stricter rules have been introduced in Barcelona and Tenerife for tourist apartments, which has led to a reduction in their number.
According to Mayor Jaume Collboni, Barcelona continues to prohibit the building of new hotels in the centre, which allows businesses to upgrade and add up to 5,000 new rooms in other parts of the city. Moreover, all 10,000 apartments are expected to be inaccessible by 2028.
Kollboni said that hotels could provide better quality and employee rights protection than the apartment sector. In addition, daily rent prevents locals from renting an apartment for a long time or buying it. Therefore, rents have risen by 68% over the past 10 years, and the cost of housing has went up by 38%, which has made real estate less affordable for Spaniards.
There are plans to increase the number of beds by a thousand in new luxury hotels in the southeastern part of Tenerife, which has the highest concentration of 5-star hotels in Europe.
Investment
Spain has exceeded the UK and become the largest market for hotel sector investments in Europe. Two Spanish cities, Madrid (2nd) and Barcelona (6th), are also ranked among the top cities in Europe.
The country is implementing various upscale hotels, with a new 5-star Grand Hyatt in Barcelona, and new hotels in Mallorca and Tenerife set to open before the year ends. Another popular investment trend involves acquiring an existing fund, restoring and upgrading it to the high-end market.