Resicom – Holiday Investment – 04-21 – LB

Spanish Competition Commission Supports Holiday Lets

The National Commission on Markets and Competition (CNMC) in Spain has announced that it intends to challenge any attempt by city councils to limit the activity of accommodation websites.

In contrast to many other major holiday let destinations such as Paris and New York who have been introducing new regulations to combat short term rental platforms like Airbnb, the Spanish National Commission on Markets and Competition has come out in support of the platforms.

The Spanish market regulator also published a report defending the accommodation platform’s model. Across multiple pages the report’s authors laud the copious benefits of short-term holiday rentals, including:

  • A broader range of tourist accommodation;
  • The opportunity to earn more money for property owners;
  • Better information for consumers;
  • Enhanced competition in the tourist accommodation market, leading to lower prices (for tourists);
  • The empowerment of the consumer.

By contrast, in a solitary one-page section on the ‘possible’ downsides of short-term holiday rentals, the report only mentions a ‘potential’ increase in noise and other disturbances for neighbours.

The report also disputes claims ‘there is no conclusive evidence’ that short-term holiday rental operators have pushed up the price of accommodation for locals in popular tourist destinations, whether in terms of rents or purchases.

It goes on to say ‘although if there has been a general rise of house prices in Spain in recent years, this is due to a confluence of economic factors. No evidence exists of a direct and exclusive relationship between the supply of tourist housing and property prices.’

The move by the National Commission on Markets and Competition is in stark contrast to other governments who have been seen to support local councils in the battle against short-term holiday lets.

However, it can only be good news for overseas property investors wishing to rent out their holiday homes in Spain.

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