Madrid takes action against Airbnb and overtourism

Madrid is the latest city to tackle the challenges of overtourism, as the Spanish capital moves to impose stricter controls on the availability of Airbnb and homeshare listings.

José Manuel Calvo, Secretary for sustainable urban planning, unveiled the proposed regulations last week, aiming to directly address the impact of mass tourism.

The new rules have been introduced in response to concerns from locals who fear being priced out of their own neighborhoods.

Other popular destinations across Spain, including Valencia and Mallorca, as well as Venice in Italy, have also enacted severe measures to curb overtourism and promote responsible travel.

New regulations

The proposed regulations in Madrid will limit apartment rentals to tourists to no more than 90 days annually. Additionally, entire apartment buildings can no longer be used exclusively for short-term rentals unless they are officially licensed as hotels.

Different restrictions will be imposed based on the location of the apartments within the city. As expected, more stringent rules will apply to properties situated in the city center.

Airbnbs in the central area will be required to have a separate entrance, distinct from that of the building's permanent residents.

This measure would eliminate most of the vacation rental apartments currently in use, signaling a major shift for the city.

The city has reported that the Central district hosts 23 times more tourists than all the other 20 districts of Madrid combined.

Room with no view

In Valencia, on Spain’s southeastern coast, officials have introduced proposals to limit private holiday rentals to no higher than the first floor.

The outcome? No more rooms offering spectacular views. Instead of panoramic vistas of the Mediterranean, you're more likely to face a view of parked cars.

In the Ciutat Vella, the historic old town of Valencia, no new rental properties will be permitted.

Earlier this year, Palma, the capital of Mallorca, enforced a strict ban on apartments being used as private vacation rentals.

"Airbnb is helping local families cover rising living expenses while also supporting the local economy," Airbnb stated in an interview with Dinogo Travel.

"It's part of the solution to housing challenges in cities, and it's putting tourism dollars into the hands of local families rather than large hotel chains."

Airbnb insists that "Airbnb has no meaningful impact on housing availability in Madrid."

According to a recent report, Airbnb stated that "home listings booked for more than 90 nights in 2017 made up only 0.3% of the total housing supply in Madrid."

The company emphasized that they would continue engaging in "constructive discussions" with Madrid and Valencia regarding the future of Airbnb in these cities.

Airbnb highlights recent changes in Berlin, where previously strict regulations were relaxed to allow short-term apartment rentals.

Ongoing issue

The problem of overtourism goes far beyond the scope of Airbnb.

In Mallorca, activists have proposed a fee for cruise passengers and a limit on the number of ships docking in the city, capping it at two per day.

In Venice, long regarded as the unfortunate poster city for overtourism, a new strategy has been introduced to manage the overwhelming crowds during the May Day weekend: separating locals from tourists.

Temporary measures were put in place to control pedestrian and water traffic, ensuring that crowds were directed away from local residents.

Traveler Faye Richards visited Venice during this busy holiday weekend.

In the heart of the city, the crowds were overwhelming,” she told Dinogo Travel. “Especially on the narrow streets, we had to move at a crawl, constantly behind others.”

Richards and her group waited in long lines to visit St Mark’s Campanile and the Basilica at St Mark’s Square. When traveling by boat from the Venetian island of Murano to Burano, their queue stretched from the dock back into the square, filling the area with tourists.

“But once you move away from the center, there are many tranquil spots that are really pleasant. The crowds also didn’t linger too late into the evening, so nighttime was perfect for exploring,” she says.

Richards shares that she didn’t feel like she was being steered away from locals, though she didn’t necessarily see that as a positive thing.

“My overall impression of Venice was that it felt like there were almost no locals. I think they all live outside the city. Everything seems to be set up for tourists,” she says.

Alternative approaches

They emphasize the importance of listening to locals, tourists, and authorities in order to promote meaningful dialogue.

Justin Francis, CEO of Responsible Travel, a company dedicated to responsible tourism, states, “It’s encouraging to see places finally hearing from residents and taking charge of how tourism evolves, aiming to prevent overtourism.”

“Airbnb has become a double-edged sword for many tourist hotspots worldwide,” he reflects.

“Initially, it appeared to be a promising way to empower locals—opening up the accommodation market, creating new opportunities in communities, and distributing the benefits more broadly beyond just the big hotel chains.”

“It positioned itself as a disruptive force, but I don’t think we anticipated how much disruption it would cause for local residents.”

Francis commends the decision to involve local voices in Valencia and Madrid and advocates for a new approach based on open communication.

“For tourism to have a responsible future in these cities, we must move away from the ‘growth at any cost’ mentality and begin measuring tourism’s success through indicators that prioritize the well-being of local communities.”