Valencia introduces fines of up to €600,000 for unlicensed short-term rentals to combat over-tourism and rising rental costs. The move follows similar actions by Barcelona, Venice, and other popular European destinations.
Rising Concerns Over Short-Term Rentals
According to Airbtics, an analysis company specializing in Airbnb data, Valencia's short-term rental market is robust, with an average occupancy rate of 79%. In 2023, the median nightly rate for these rentals was €93, leading to an annual revenue of approximately €27,000 per host. As of mid-April, there were 9,128 active Airbnb listings, primarily concentrated in popular neighborhoods like Ciudad de las Artes y las Ciencias, La Lonja de la Seda, and near Valencia Cathedral.
However, the lucrative short-term rental market has also led to a surge in unregulated accommodations. Nuria Montes, a tourism official in Valencia, expressed concerns about these black-market rentals. "We cannot allow any kind of underground economy in accommodation. They escape any type of control, don't pay taxes, and pose significant safety risks," she said, noting the lack of compliance with local regulations regarding client identification, fire safety, and emergency protocols.
Montes estimates that there could be as many as 50,000 unlicensed short-term rental apartments across the region, exacerbating issues such as inflated local rental prices and strain on public infrastructure.
New Licensing Requirements
To combat these issues, Valencia now requires all short-term rental properties to obtain a Valencian Tourism Registry tourist license. This process involves providing detailed information about the property, including its intended use, compliance with quality and safety standards, and owner details. Essential documents such as proof of ownership, property floor plans, energy efficiency certificates, and insurance proof are also required.
A Broader European Trend
Valencia's crackdown is part of a broader trend among popular European tourist destinations grappling with over-tourism. Barcelona, for example, is phasing out all Airbnb-style apartments by 2028, even those with valid licenses, in an effort to reduce the strain on local housing markets. Venice has implemented restrictions on tourist group sizes and cruise ships, while Split in Croatia is addressing issues related to party tourism, particularly from the UK.
The Boom in Short-Term Rentals
Spain has long been a favored tourist destination due to its warm climate, rich cultural offerings, and well-developed infrastructure. In recent years, the short-term rental market has exploded, driven by tourists seeking affordable alternatives to hotels and a more authentic travel experience. The ease of booking through digital platforms has further fueled this growth, with many unlicensed rentals slipping through regulatory cracks.
Real estate companies have also capitalized on this trend, aggressively marketing Spanish properties to foreign investors and promising high returns on short-term rentals. This has attracted a diverse range of property owners, including expatriates and locals, to invest in the market.
Valencia's new measures reflect a growing recognition of the need to balance tourism with the well-being of local communities. As more cities across Europe implement similar regulations, the landscape of short-term rentals and tourism will continue to evolve, with a focus on sustainability and responsible tourism practices.
Source: Euronews
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