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Majorca Housing Crisis Intensifies as Travel Agencies Critique Tourism Decree
The escalating housing crisis in Majorca has drawn sharp criticism from travel agencies, who have voiced their concerns regarding the Balearic government’s latest tourism decree designed to address the issue. This marks the first time travel agencies have publicly commented on the controversial measures.
Travel Agencies Criticize Holiday Rental Limit as “Missed Opportunity”
The Balearic Islands government recently implemented a temporary cap of 90,000 holiday rental accommodations as an interim measure while considering a permanent limit. This initiative aims to manage the impact of tourism, focusing on containment rather than reducing visitor numbers. However, Aviba, the Balearic travel agencies association, has described this limit as a “missed opportunity” to effectively reduce tourism pressure and provide substantial relief to the ongoing housing crisis. Pedro Fiol, president of Aviba, labelled the accommodation space limit a “strategic error”, asserting that homes should be prioritised for residents and not allocated to visitors.
“Strategic Error” in Housing Policy, Argues Travel Agency President
Fiol elaborated, stating, “Reintroducing these accommodation options into the market, amidst a severe housing crisis and increasing tourism pressure, is a strategic error. We cannot permit visitors to occupy homes that should be reserved for residents.” He further explained that this practice inflates market prices and transforms essential housing into a tourist product.
He suggested that holiday rentals cater to individuals who cannot afford hotel stays, leading to a “lower quality offering,” and contended the present situation is “unsustainable.” In his view, the availability of such accommodation fuels greater tourist demand in an already congested market, creating a “vicious cycle”.
Need for Regulated Holiday Rentals to Address Market Distortion
Fiol clarified, “It’s not about condemning holiday rentals, but about properly organising them. Decades ago, villas and chalets served as supplementary options and did not distort the market. Today, the situation is unsustainable.” He highlighted the domino effect, stating, “More accommodation generates greater flight demand, and increased flights intensify pressure on a restricted area.”
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He also pointed to the changing landscape of towns, noting, “In numerous towns, the prevalence of real estate agencies displaying signs in foreign languages, rather than Spanish or Catalan, illustrates to whom our island is being marketed.”
Hotel Sector Echoes Concerns Over Accommodation Availability
The Mallorca Hoteliers Federation supports Mr. Fiol’s position, describing it as “scandalous” and “incomprehensible” that so many accommodation spaces remain accessible in light of the current housing crisis.
Record Tourist Arrivals in Balearic Islands
In 2024, the Balearic Islands witnessed a historic peak in tourism, welcoming 15.3 million visitors. This figure represents a 6.15% surge compared to the previous year, underscoring the escalating demand and pressure on the islands’ resources.