Majorca‘s housing crisis has hit new heights as travel agencies have weighed in on the argument for the first time to critique the government’s new tourism decree.
Last week, the Government of the Balearic Islands in Spain agreed on a temporary 90,000 holiday rental space limit while they decide on a permanent limit in a bid to “contain” the impact of tourism rather than reduce the number of arrivals. However, the Aviba travel agencies association in the Balearics believe this is a “missed opportunity” to reduce tourism pressure and help alleviate the housing crisis. Calling the space limit a “strategic error” the president, Pedro Fiol, argues they cannot allow “visitors to occupy homes that should be reserved for residents”.
He said: “Reintroducing these accommodation places into the market, in the midst of a housing crisis and with growing tourist pressure, is a strategic error.
“We cannot allow our visitors to occupy homes that should be reserved for residents. This increases the market price and turns a basic good into a tourist product.”
Mr Fiol believes holiday rentals are for those unable to afford to stay overnight in a hotel and that this “generates a low-quality offer”.
The president believes the current situation is “unsustainable” with the accommodation generating more tourist demand in an already saturated market which he argues creates a vicious cycle.
Mr Fiol said: “It’s not about demonising holiday rentals, but about organising them. Fifteen years ago we had villas and chalets that were a complement and which didn’t distort the market. Today, the situation is unsustainable.
“More accommodation generates more flight demand. And more flights put more pressure on a limited area.
“In many towns, we see more real estate agencies with signs in foreign languages than in Spanish or Catalan. This reflects who our island is being sold to.”
The Mallorca Hoteliers Federation agrees with Mr Fiol, adding that it is “scandalous” and “incomprehensible” for so many places to remain available given the state of the housing crisis.
In 2024, the Balearic Islands received a total of 15.3 million visitors, a record high. This marked a 6.15% increase compared to the previous year.