Spain tourism’s rapid expansion is putting immense strain on local housing markets, and Alicante is feeling the pressure firsthand as it postpones a much-anticipated crackdown on illegal holiday rentals. The city, a major coastal destination popular with international visitors, especially from the UK, had planned to inspect and penalize unlicensed tourist flats. However, the enforcement plan has stalled due to a lack of inspectors and administrative delays in transferring regulatory authority from regional to local officials. This delay comes amid growing national unrest over overtourism and rising housing costs, sparking concerns that unregulated short-term rentals are exacerbating Spain’s urban housing crisis.

Alicante’s Crackdown on Illegal Holiday Rentals Stalls Amid Staff Shortages and Housing Pressure

Plans to tackle the surge of unregulated tourist accommodations in Alicante, a popular Spanish holiday destination among British travelers, have hit an unexpected delay. The city had been preparing to implement a large-scale inspection program aimed at identifying and penalizing illegal short-term rentals, but the initiative has been postponed due to a shortage of trained inspectors and administrative complexities.

Enforcement Plan Stalled Due to Administrative Bottlenecks

The ambitious strategy was intended to verify the legality of thousands of tourist flats, many of which operate without proper licenses. The city planned to impose sanctions and collect fines from non-compliant property owners. However, Alicante’s urban planning councillor, Rocio Gomez, announced during a recent plenary council session that the city is currently unable to proceed, citing insufficient personnel to conduct the necessary checks.

Gomez clarified that while the city is working toward establishing a dedicated inspection unit, the formal process of assuming authority from the regional government has yet to be completed. She refrained from offering a specific timeline for when enforcement might begin, underscoring the bureaucratic hurdles that remain.

Alarming Numbers of Unregistered Tourist Properties

Alicante’s city council disclosed in a January assessment that an estimated three-quarters of vacation rental units across the city lack formal registration. In some of the most visited neighborhoods—including the culturally significant Old Town, the vibrant city centre, and the popular coastal stretch of San Juan—tourist rentals account for nearly 20% of all housing, with a large portion operating informally and bypassing official oversight entirely.

In response to the mounting concerns, Alicante introduced a two-year suspension on new tourist rental licenses in December 2024. This moratorium was designed to give officials time to conduct comprehensive assessments of each neighborhood, allowing for more informed decisions about how many tourist accommodations are sustainable in each district.

A City Caught Between Tourism and Housing Pressure

Alicante, situated on Spain’s southeastern coast, is renowned for its Mediterranean charm, sunny climate, and cruise ship arrivals. The city’s port ranks among Spain’s most active cruise destinations, having welcomed over 80,000 cruise passengers from 72 port calls as early as 2007. Since then, visitor numbers have continued to rise sharply, mirroring national tourism trends.

However, this popularity has placed Alicante’s housing infrastructure under increasing strain. The boom in short-term tourist rentals has made it more difficult for locals to find affordable long-term housing. Residents complain that tourist flats are pushing up rents and displacing families, particularly in central and coastal neighborhoods.

This friction has contributed to a broader national backlash against mass tourism. In April 2025, tens of thousands of Spaniards took to the streets in more than 40 cities to protest the housing crisis. Their message was clear: Spain’s growing reliance on tourism must be balanced against the basic needs of its residents.

Growing National Movement Against Overtourism

The sentiment in Alicante reflects a wider anti-tourism movement that has gained momentum across Spain. In the Balearic Islands, seven protest organizations in Majorca recently penned an open letter urging tourists to reconsider visiting the island, citing the overwhelming strain on local infrastructure and housing.

These calls come amid increasing evidence that unregulated holiday rentals are contributing to the worsening housing shortage in many Spanish cities. Urban residents, especially younger and lower-income groups, are being priced out of their own neighborhoods as landlords prioritize short-term profits from tourists.

Next Steps for Alicante’s Housing Policy

While the delay in enforcement is a setback, city officials maintain that their commitment to addressing illegal tourist accommodations remains firm. The planned inspection unit is currently under development, and Alicante is expected to formally request full regulatory control from the regional authorities once its internal capabilities are in place.

During the ongoing two-year licensing freeze, authorities aim to collect detailed data on the distribution of tourist flats across the city. This will enable them to design more targeted, neighborhood-specific policies that ensure a fair balance between tourism and residential needs.

In the meantime, activists and local residents continue to pressure the government to act swiftly. As tourism remains a vital economic engine for Alicante and the wider Valencian Community, city leaders are under growing pressure to find a solution that sustains the local economy without sacrificing the livability of the city.

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