Friday, August 08, 2014

Balearics Out Of Step On Holiday Lets

Something significant has happened in the Canary Islands. The regional government headed by Paulino Rivero has announced that it will regulate private holiday accommodation in the islands. The draft legislation will be ready before the end of the year, Rivero's government having given a commitment to this effect to the Canaries association of holiday rentals.

Rivero had signalled his willingness to consider such regulation some time ago. That his administration is now going to turn this willingness into firm legislation does mark a very significant moment for Canaries' tourism. Those islands have typically been as antagonistic towards the private accommodation sector as the Balearics. But even more significant is the fact that the Canaries will join Catalonia, Valencia and Andalusia in either having a system of regulation or being on the point of introducing one. Of the five main sun-and-beach tourism regions of Spain, the Balearics will be the exception to the rule. Other regions of Spain, among them the less sun-and-beach-dependent Basque Country and the not sun-and-beach-dependent-at-all Madrid are also in the process of regulating.

As ever, it is important to point out what regulation means or might mean. It doesn't mean stamping out (this is a commonly made mistake by some commentators who confuse the term regulation with prohibition). It means putting in place specific rules governing the rental of private accommodation for holiday purposes, Catalonia's regulation being the model that other regions are inclined to follow.

With the Balearics out of step with other regions, might there be a change of heart here? Not while the current government is in power. But what might happen following the next regional elections? It's anyone guess at present to try and figure out what sort of hybrid shambles of an administration might emerge, assuming the PP doesn't win (and it looks unlikely that it will, or be in a position to carry on in coalition). But PSOE, at the heart of this probable unholy alliance of Podemos and the left collective of other parties, would be inclined to go down the regulation route. Put it this way, it voiced its support for a relaxation in rules when all the tenancy act furore arose last year.

It's some time off, but the holiday-lets issue could yet prove to be a major political matter come next spring. The hoteliers, for one, will be doing all they can to try and ensure the PP stay in power. But if doesn't, then there's going to be one hell of a fight between the hoteliers and a PSOE-led pact.

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