Published on : Thursday, August 10, 2017
From Tuesday onward, the Balearic Islands in Spain will impose fine on landlords for renting apartments to the visitors illegally. Penalization of up to 40,000 euros ($47,228) in the midst of a counterattack against the effects of mass tourism all over the country will be inflicted.
This initiation is a kind of an escalation to identify home-sharing sites like Airbnb by city councils or local authorities in Spain. This effort was initiated as concerns were growing in terms of the ill-effects of their growing popularity.
Airbnb, similar to ride-hailing firm Uber, is facing an attack from global legislators triggered by the hotel industry which considers rental service as an unjust practice.
This June, the Balearic Islands succeeded in attracting more foreign visitors than other Spanish regions, rental costs have increased tremendously and there are apprehensions of a scarcity in renting for residents.
If we take a look, the rental prices in Palma de Mallorca, the Mediterranean archipelago’s biggest city, have increased 40 percent in five years, according to property platform Mitula.
Also, according to data from analytics firm Airdna, the island of Ibiza has the highest density of Airbnb rentals where one can find a tourist apartment for every 30 residents. In the year 2012, renting apartments without a proper license was forbidden in the region. However, the enforcement was absent most of the time, as per the Balearic government.