SANTA CRUZ DE TENERIFE, 5th April. (EUROPA PRESS) –
The Hotel and Non-Hotel Association of Tenerife, La Palma, La Gomera, and El Hierro, Ashotel, welcomes the Canary Islands Government’s initiative to draft legislation on holiday rentals to better manage a sector that has experienced a “significant increase” in recent years.
The draft proposal was presented on Thursday to various business and union associations in the Canary Islands during a meeting attended by the Deputy Minister of Tourism, José Sanabria, and the General Director of Planning, Miguel Ángel Rodríguez.
The new legislation, accompanied by a detailed explanatory statement, sets limits and regulatory tools that empower local councils to intervene. Until the councils have the necessary planning mechanisms in place, new holiday rental properties cannot be authorised at the municipal level, as highlighted by Ashotel.
As of March 30, 2024, the number of holiday rental units in the Canary Islands stood at 220,000, compared to 372,000 hotel and apartment units, as per Istac data from February. This represents a reduction of 56,700 units over the past ten years, transitioning from 428,626 in February 2014 to 371,915 in February 2024 (-13.23%). This decrease is attributed to a refurbishment of outdated facilities into modern ones and the conversion of non-hotel complexes into residential properties, thereby diversifying the traditional tourism market.
The significant surge in holiday rental units is seen by the association as a response to the upcoming regulation announcement, prompting owners to swiftly seek approval by submitting the necessary paperwork.
Ashotel has long highlighted the importance of categorising holiday rentals as a licensed activity subject to municipal approval, an aspect that many owners are currently failing to comply with.
The public consultation period is open for objections and suggestions on the proposed legislation until May 2, allowing different stakeholders to propose enhancements and tweaks to the regulatory framework.
While Ashotel supports the place of holiday rentals in the Canarian tourism landscape, it emphasises the need for territorial growth limits similar to those applied to other accommodation types, a regulation not currently outlined in sector regulations, as per decree 113/2015.
Although holiday rentals are not solely responsible for the housing scarcity issue in the Canary Islands, it is acknowledged that the practice contributes to the problem as it utilizes residential properties for commercial purposes without defined quantitative or urban growth limits.
The association states that it is in the process of preparing its feedback document to submit before the deadline.
LOW EMPLOYMENT IMPACT OF HOLIDAY RENTALS
Ashotel has also assessed the employment opportunities provided by holiday rentals as opposed to the accommodation sector, which currently lacks representation in Social Security records and official statistics.
Highlighting the tourism sector’s substantial contribution to regional revenue through direct and indirect taxes amounting to 3,400 million Euros and employing over 344,000 individuals, including 77,000 in hotels and apartments and 159,000 in the broader hospitality industry, as per the Impactur 2022 report.
Ashotel questions the employment contribution of holiday rentals in the Canary Islands in comparison.
Ashotel has raised concerns about the repercussions of unregulated holiday rentals for ten years, given the significant growth in the sector, which posed challenges for accommodation staff in finding nearby long-term rentals.
This led to many individuals seeking accommodation in distant locations, causing congestion on major transportation routes, especially in Tenerife.
