A2.2 Another action taken at the Balearic level was the creation of tourist taxes, first in 2002 and later in 2016, but the only effect they have had is an increase in administrative procedures at hotel receptions, with the money collected being allocated to investments of dubious utility for reducing the negative impacts of tourism. Regarding improvements in infrastructure and public services, they are always carried out long after their collapse, and when these improvements are completed, they are already at their capacity limit due to the delay. As I mentioned before, these improvements always lag far behind the real need of the moment.
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A2.4. Reflections on unintended consequences:
Long-term rentals and rent increase cap:
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I would be interested in hearing from others in this discussion if there have been studies on the potential unintended consequences on rent increase caps given the fact that it could lead to (for instance) property owners perceiving this as a barrier and choosing to swap to touristic rentals instead, reducing the number of properties available for long-term. Or turning to informal agreements, which could reduce tenantâs protections.
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Also Iâve read that restrictions on rent increases and extended eviction processes could lead to higher rents to mitigate risks for owners.
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The issue of rental affordability is complex. Higher rents can increase the likelihood that tenants will struggle to pay, leading to evictions and financial instability. This, in turn, can prompt landlords to prefer short-term rentals, perceived as less risky and more profitable, thereby reducing the availability of long-term rental properties. This cycle exacerbates housing shortages and makes it harder for residents to find stable housing. The prevalence of vacant properties in Ibiza highlights this issue, suggesting that many landlords avoid long-term leases due to perceived risks.
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Un buen ejemplo.
La limitaciĂłn del crecimiento turĂstico no solo debe afectar al sector reglado hotelero. En mi opiniĂłn la saturaciĂłn proviene de la oferta de pisos turĂsticos en zona residencial que ademĂĄws suponen una clara competencia desleal al sector
Q1. Specific situation of small rural locations in sites of natural environmental beauty in Scotland.
Negative social consequences include (a) Unaffordability of local housing as more second homes are owned to rent out for AirBânB style holiday lets leading to difficulties of local young people in particular to get a foot on the housing ladder. (b) Tensions between locals and visitors - car parking, traffic jams, higher prices in local food outlets, disruption of everyday lives as locals have to fit into tourist behaviour patterns. (c) Tensions between local hospitality providers and local residents - illustrated predominantly in objections to planning applications, hostility towards street cafe developments, objections to temporary holiday accommodation by those who already have invested in temporary holiday accommodation! (d) Shortage and fluctuations in local labour markets for employment opportunities - here in the UK there has been an explosion of âzero hours contractsâ which can lead to highly exploitative behaviours particularly in times of economic uncertainty which leads to unhealthy competition for decent jobs and a âpoachingâ culture within the hospitality sector which degrades employer-employee loyalty and creates unhealthy tensions among different hospitality service providers. This is exacerbated by seasonal swings in employment, ultimately leading to socially unstable workforces who are unable to have job security enabling them to get on the housing ladder and therefore reinforcing their vulnerability to high housing rents.
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A2.5. More reflections on unintended consequences of long-term rentals and rent increase cap:
- Small property owners often feel vulnerable when dealing with non-paying tenants, as eviction processes can be very lengthy, sometimes exceeding a year. During this time, tenants may continue not paying rent, leaving landlords to cover expenses like mortgages without rental income. This insecurity drives many landlords to opt for short-term rentals, despite the potential for regulatory and ethical challenges. To address this issue, policies need to be developed that strike a balance between protecting tenantsâ rights and providing assurances to landlords. This would encourage more long-term rental agreements, benefiting both parties.
- Moreover, exploring the role of companies could provide insights into innovative solutions. Companies can contribute by offering rental guarantees, mediation services, or technology platforms that ensure better compliance and trust between landlords and tenants.
- These dynamics reveal the necessity of a nuanced approach to rental policies that consider both the protection of tenants and the incentives for landlords to offer long-term leases. Understanding and addressing these aspects are crucial for creating a more accessible and stable housing market.
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A2. Important to be cognisant of how policies may interact - cannot treat housing and tourism policies completely separately. For example, in markets with rent controls in the private rental sector, but little/no regulation in the short-term let sector there may be additional incentives to switch from PRS to short-term lets. Policymakers need to take a more holistic approach to any regulations, with much greater cross-department/agency collaboration.
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Translation Q2.1: In the case of Torroella de MontgrĂ-LâEstartit, located in the center of the Costa Brava, a municipality that began its tourism expansion in the mid-1950s, democratic town councils made a determined effort to limit tourism growth through Municipal Urban Planning Plans (POUM).
Thus, the Plan approved during the tourism expansion phase of 1969 envisaged the creation of 120,000 accommodation places, of which only 10% were for the local population, in a municipality that at that time had 5,000 inhabitants. The democratic town councils formulated two new Urban Plans (1983 and 2001), one of the main objectives of which was to reduce developable areas and ensure the conservation of landscapes and ecosystems of great value that give identity to the municipality: Medes Islands, MontgrĂ Massif, Ter River mouth.
The process was initially very complicated and conflictive, but the results have been evident, recognised, and currently have a high consensus among the local population. Compared to other municipalities on the Costa Brava, it has built the fewest second homes and tourist rentals in relation to the local population; however, it is the second in Gross Domestic Product and unemployment rates are lower than the average in the Baix EmpordĂ region.
A2.3. Currently, restrictions on vehicle access to Ibiza Island are being considered. In Formentera, restrictions have been in place for some years, and a similar situation occurs on Capri. These restrictions can help to a limited extent and are applicable on islands since all vehicles arrive via maritime routes where control can be implemented. On the other hand, some people propose limiting the purchase of housing by foreigners or requiring empty houses to be rented out, but this may go against current European legislation in the first case and may have the opposite effect in the second case.
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Some of the ways in which you can promote cultural economy and also ensure that tourism is spread out is via catalytic grants programmes that help highlight and promote other tourist spots.
Jobs are created, economy of various other 2nd and 3rd tier cities are helped out and the risk of untenable housing prices / rents can be addressed.
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A2.4. Regarding housing, since the 1960s, Spain has tended to protect tenants (leaving landlords unprotected) and to cap prices. In all cases, these decisions have resulted in higher prices and reduced supply, especially due to the perceived insecurity by landlords. Moreover, even if all empty houses were put on the market, they would be insufficient because since the 2008 crisis the construction of new housing has significantly decreased. Between 1993 and 2008, more housing was built than needed to meet demand because it was a form of investment for many individuals and was very profitable. After the 2008 crisis, the previous excess allowed the new demand to be met for some time, but 16 years have passed since then and in Ibiza and many areas of Spain there is not enough housing to meet all the demand at reasonable prices.
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Translation: Good afternoon,
A1.1 The challenges we face are mainly:
- Solving the progressive seasonal saturation.
- Mitigating gentrification (the process of renewing an urban area, usually popular or run-down, which involves the displacement of its original population by another with greater purchasing power).
- Promoting the balance between the resident and floating populations (including tourists).
- Reliably determining our hosting capacity.
- Improving infrastructure to protect the quality of life for residents and tourists.
- Ending the lack of dignified residential housing.
- Promoting environmental awareness as a necessary element in our society.
- Leading the fight against illegal tourism practices.
Collaboration among businesses, civil society, and government is crucial to address the challenges posed by tourism growth. Here are some strategies and examples:
- Public-Private Partnerships (PPPs):
o Strategy: Encourage joint initiatives between government agencies and private businesses.
o Example: In the Lake Tahoe-Truckee region, stakeholders collaboratively developed a vision and plan for destination stewardship1. - Shared Marketing and Demand Generation:
o Strategy: Pool financial resources for marketing efforts.
o Example: Tourism businesses within a destination create joint sales and marketing plans to boost low-season business2. - Data Sharing and Knowledge Exchange:
o Strategy: Foster collaboration by sharing information and insights.
o Example: Industry associations and local governments collaborate to collect and analyze tourism data for informed decision-making. - Capacity Building and Training:
o Strategy: Enhance skills and knowledge across sectors.
o Example: Workshops and training programs bring together stakeholders to learn about sustainable practices and collaboration3.
Remember, collaboration can lead to redefining success in tourism, benefiting stakeholders, increasing resilience, and addressing future challenges
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Our third question today:
Translation:
ILLEGAL PRACTICES IN THE TOURIST ACCOMMODATION SECTOR. VARIOUS CONSIDERATIONS AND PROPOSED SOLUTIONS:
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ANALYZE THE CAUSES IN ADVANCE: rental of vacation homes in residential areas (some with a tourist license, others without), the lack of protection for the owner against fraudulent tenants, the boom of collaborative platforms that market residential homes without permission for tourist use, etc.
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DISTINGUISH BETWEEN LEGAL AND ILLEGAL PRACTICES
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Legal practices: allowing hotel activities in residential homes that are permitted to be tourist accommodations but not subject to the same regulations and requirements as hotels.
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Illegal practices: the illegal exploitation (without a tourist license) of residential homes.
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REQUIRE THE EUROPEAN UNION TO DEMAND THAT COLLABORATIVE PLATFORMS CLEARLY INDICATE IN A VISIBLE TAB WHETHER THE ADVERTISED PROPERTY HAS A TOURIST LICENSE.
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CREATE A WORKING GROUP AGAINST ILLEGAL PRACTICES IN TOURISM, with representation from civil society, public administration, and the tourism sector.
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DEFINE PARAMETERS AND INDICATORS to periodically measure the progress of the working group in combating illegal practices.
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Processed complaints.
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Annual inspections.
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Sanctioned parties.
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Paid fines.
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INTENSIFY INSPECTIONS, WITH MORE FINANCIAL AND PERSONNEL RESOURCES dedicated to combating illegal practices.
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DISCOURAGE ILLEGAL RENTALS AND PRACTICES with an AGGRESSIVE SANCTIONING REGIME.
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PROPOSE A LAW AGAINST ILLEGAL PRACTICES, eliminating obstacles like the inviolability of the home and establishing a strict sanctioning regime.
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EXPAND THE SCOPE OF INSPECTIONS: residential homes illegally conducting tourist activities (commercial actions) should be considered businesses, allowing inspections without the resident claiming âinviolability of the homeâ to deny access to inspectors and police, as it would not be considered a home.
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EXTEND THE RESPONSIBILITY FOR VIOLATIONS to all involved parties, including shared responsibility. Violations should apply to both the traveler who contracts the illegal rental, the person or company offering the rental without a license, and the platform advertising it. Shared responsibility for fines among those involved in the violation: the renter, the lessee, and the platform.
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CONTROL THE ARRIVAL OF TRAVELERS TO THE BALEARIC ISLANDS: require all travelers to fill out an online form (like Google Form) when purchasing a plane or boat ticket, indicating their travel date, duration of stay, and accommodation location.
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LAUNCH AN EDUCATIONAL, INFORMATIONAL (AWARENESS AND SANCTIONING REGIME INFORMATION), AND STRONG COMMUNICATION CAMPAIGN, warning of the consequences of contributing to illegal practices and the harm they cause to society.
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REQUIRE THAT EVERYONE IN THE TOURIST ACCOMMODATION SECTOR FOLLOW THE SAME RULES AND REQUIREMENTS. STANDARDIZE TOURIST, HEALTH, ADMINISTRATIVE, FISCAL, LABOR, LEGAL, REGULATORY, AND ENVIRONMENTAL STANDARDS.
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PROMOTE A NATIONAL ANTI-ILLEGAL PRACTICES CONVENTION TO SHARE SOLUTIONS AND BEST PRACTICES.
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CREATE AN ANONYMOUS EXPRESS COMPLAINT BOX (VIA WHATSAPP, ETC.) with a streamlined protocol for initiating the sanctioning process.
LACK OF HOUSING FOR OUR HUMAN RESOURCES AND NEW RESIDENTS
Regarding the lack of housing, the following solutions are proposed:
- Maintain an inventory of underutilized buildings and public areas that can be converted into housing.
- Optimize buildable spaces, allowing the creation of more smaller-sized homes.
- Prioritize the creation of multi-family housing over single-family homes.
- Build more VPO (Officially Protected Housing) for rental to avoid speculation in those acquired through purchase.
- Allow hotels to construct rooms exclusively for accommodating their staff.
- Provide legal security to residential property owners to protect them against fraud and non-payment. Many apartments remain vacant due to fear of non-payment and the lengthy judicial process to recover them.
A3: There needs to be more support and collaboration instilling stewardship/guardianship. By that I mean, a public-private collaboration is crucial and centre. There must be measurement to be able to monitor and manage demands on all resources, ensuring equitably for all. This will help protect the quality of living for now and the future.
Luckily, we have a benchmark for aspects of this, like certification programmes, which encourage businesses to adopt sustainability certifications and eco-labels (e.g. Green Key England).
I urge business owners and budding sustainability professionals to read more about Costa Ricaâs âCertification for Sustainable Tourism (CST)â (for community-based tourism initiatives), New Zealandâs âTourism Industry Aotearoaâ (TIA) (a quality assurance programme), the âGreen Scheme of Slovenian Tourismâ (a collaborative destination management programme) and my personal favourite â the âInternational Partnership for the Satoyama Initiativeâ, a sustainable tourism promotion by Japanâs Tourism Agency â which I was recently exposed to during a Japanese government funded trip to Japan (I was invited by a GSTC-certified travel business in Japan to consult with the local communities in sustainable development of the Hachijojima, one of the islands off of the mainland).
Destination and regional management should be trailblazing this model â collaboration of local stakeholders, business owners, private and public sector. In my opinion, there isnât enough of a drive from Public-Private Partnerships (PPPs). There should be more imputes on PPPs to fund and investment in public resources, in order to develop a sustainable tourism infrastructure.
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A3. Collaborative data collection and sharing efforts between short-term let platforms, regulators, local government, tax authorities etc. to regularise the sector e.g. in Denmark where authorities worked together with Airbnb to implement a data sharing agreement.
-Comprehensive short-term let register and collaboration between relevant government departments, local governments and other state agencies.
-Recognition of very localised impacts of short-term lets on particular communities and the need for varied policy responses depending on the specific circumstances and engagement with local communities.
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A3. Considero que lo apropiado serĂa diseñar una estrategia de desarrollo local global, a partir de la cual, se diseñen Planes estratĂ©gicos para sectores clave. Actualmente, considero que se da prioridad a los âPlanes de Marketing TurĂsticoâ y a corto plazo, sobre Estrategias a largo plazo y globales.
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Translation: A good example.
The limitation of tourism growth should not only affect the regulated hotel sector. In my opinion, the saturation comes from the offering of vacation rentals in residential areas, which also represent clear unfair competition to the sector.