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The European Union is considering new rules to restrict Airbnb and other short-term rental platforms in areas facing housing shortages. The proposal aims to address rising housing costs in popular tourist destinations, where residents have protested the growing number of holiday rentals.

The draft Affordable Housing Act would allow authorities to identify areas under housing pressure based on factors such as housing affordability, population growth and the balance between housing supply and demand. Instead of outright bans, governments could introduce limits on short-term rentals or protections for existing operators.

European Commission Vice-President Teresa Ribera is expected to present the proposal on September 9. It will then need to be debated by EU member states and the European Parliament before becoming law. The plan follows new EU rules requiring short-term rental platforms to share listing data with authorities, while industry groups have warned against disproportionate restrictions.

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In the first half of 2024, Spain experienced a 13% surge in foreign tourists, positioning the country for yet another record-breaking year for visitor numbers, despite growing concerns over the holiday industry’s impact on popular tourist areas. According to Spain’s data agency INE, 42.5 million international visitors arrived in the country from January to June, with June alone seeing a 12% increase to 9 million, signaling the busy summer season. With this momentum, 2024 is set to surpass last year’s record of 85 million tourists, making Spain the second most visited country in the world, trailing only France.

However, residents in top tourist destinations like Mallorca, Barcelona, and the Canary Islands are increasingly worried about the influx of visitors and its effect on housing prices. Protests have erupted, including a recent incident in Barcelona where anti-tourism activists used water pistols on foreign tourists while chanting “tourists go home,” which garnered global media attention.

Tourist spending also rose significantly, totaling 12.3 billion euros in June—up 17% from the same month last year—contributing to economic growth but complicating efforts by the government to balance tourism with local community interests. Rising housing costs in Spain are partly attributed to the surge in holiday rentals through platforms like Airbnb and Booking.com. Data from the report indicates that there has been a 30% increase in tourists opting for rented apartments, while hotel stays rose by 11%.

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