Competition Law in Tourism

REGULATION OF SHORT-TERM HOUSING RENTALS IN SPAIN 697 Similarly, a Decree approved in 2016 by the Region of Andalusia warned that private housing marketed through online platforms did not always provide an excellent service or even a minimum guarantee for users16. A Decree approved in Galicia in 2017 provides a list of potential problems of short-term housing rentals: their social and economic impact, taxation issues, protection of users, quality of supply and consumer satisfaction, disturbances to neighbours and other residents, and illicit and unfair competition17. To achieve their objectives, first-wave regional regulations included various forms of restrictions onto the activity of short-term housing rentals. Some of the most usual forms refer to installation formalities (like the obligation to submit a declaration of compliance or to inscribe in a registry before commencing with business activities), technical requirements for housing (e.g., external ventilation or minimum size for rooms) or equipment obligations (e.g. furniture, heating, air-conditioning). Less frequent restrictions refer to time limits (e.g., maximum or minimum length of stays) or territorial restrictions. 2.2. The Second Regulatory Wave (2017-2018) Touristic activity had remained stable during the years of the financial crisis. The number of foreign visitors remained practically unchanged between 2007 (58.6 million) and 2012 (57.4 million). In 2013, the situation changed, as tourism started increasing at fast rates. The average annual growth rate between 2013 and 2017 was at 7.3%. In 2018, the number of visitors entering Spain was at 82.7 million, a 44% increase from 201218. This rapid increase put significant pressure on touristic infrastructures. It contributed to a public impression of tourist congestion and to public signs of weariness among locals within the most popular touristic destinations19. Regulation responded to these new issues by focusing on the protection of the environment and public resources, as well as access to housing by resident population. A Law approved in the Region of Baleares in 2017 justifies the limits imposed on short-term housing rentals in the need to safeguard 16 Decree 28/2016, of 2 February. 17 Decree 12/2017, of 26 January. 18 Source: Instituto Nacional de Estadística (INE) and Instituto de Turismo de España (Turespaña). 19 For example, the website www.hosteltur.com has a newspaper archive specialising in tourism. 191 results appear under the tag “tourist phobia” (“turismofobia”), out of these, 4 results correspond to the period 2010-12, 36 results to 2013-15 and 147 results to 2016-18 (and other 3 results correspond to 2019). Interestingly, the peak was 2017, with 97 results.

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