Spain’s efforts for sustainable tourism may lead to a staggering $25 billion deficit as rising rents and housing crises escalate, challenging tourism policies.

Spain’s efforts to tackle overtourism may come at a hefty price, with economists cautioning that the country could face a £25 billion shortfall as a result.

Airbnb has highlighted the positive contributions of short-term rentals to families, rural communities, and small businesses, arguing that restrictive regulations are unfairly blamed for Spain’s ongoing housing challenges. The platform has called for collaborative solutions, stating that overtourism and housing issues require balanced approaches rather than scapegoating rental activities.

Spain is currently grappling with significant challenges stemming from overtourism, including a housing crisis and an 80% surge in rental costs over the past decade. Acknowledging the problem, Airbnb has been working with local governments to propose solutions. According to a report by Express, the company has introduced a regulatory framework rooted in four core principles.

The first principle is distinguishing between professional tourist rentals and occasional home-sharing to ensure clear regulation. The second focuses on creating a free, unified online registration system that complies with EU regulations. Third, Airbnb recommends rules that are proportionate, evidence-based, non-discriminatory, and rooted in data. Lastly, it advocates for tailored regulations to support less-traveled rural areas, aiming to spread tourism more evenly across Spain and ease pressure on urban hotspots.

Rising rents, driven in part by high tourist activity, have placed immense strain on residents. For example, in the Balearic Islands, securing housing has become a near-impossible task, with the cost of renting a room in a shared flat climbing 17.5% in 2024 to an average of €574 per month. The Shared Housing in Spain 2024 study reveals that rental prices in Catalonia (€636 per month) and Madrid (€586 per month) are even higher, though residents in these regions generally earn more than their Balearic counterparts.

In response to these challenges, some regions have taken decisive action. Last year, the Majorcan political party Més per Mallorca proposed cutting tourist accommodation by 40% as part of a “degrowth” strategy to curb tourism on the Balearic Islands. This proposal, presented to the Balearic government in October, aims to significantly reduce the overall number of visitors, prioritizing sustainability and local well-being.

The post Spain’s Push for Sustainable Tourism Faces a Shocking Twenty Five Billion Dollar Deficit as Housing and Rent Crises Escalate appeared first on Travel And Tour World.