Spanish government says housing market is not a ‘free for all’ after recent crackdown on Airbnb

By SUMAN NAISHADHAM MADRID AP Spain s ruling body requested to send a message last month with its crackdown on Airbnb that the Spanish economic system and its housing industry are not a free for all that value profits over the rule of law a minister notified The Associated Press on Tuesday Related Articles Fed lifts restrictions placed on Wells Fargo in because of its fake-accounts controversy Tuition Department says it will not garnish Social Assurance of apprentice loan borrowers in default Snack Wrap unwrapped Here s why McDonald s is bringing back a fan favorite on July things financial experts wish they knew in high school Ground is broken for next phase projects at St Paul s Highland Bridge The ruling body ordered Airbnb to remove almost holiday rentals from the platform which it disclosed had violated local rules by failing to list license numbers listing the wrong license number or not specifying the apartment s owner Airbnb is appealing the move Spain is one of the world s largest part visited countries Last year the Southern European nation of million received a record million international visitors But a housing affordability dilemma that is particularly acute in cities such as Madrid and Barcelona has led to growing antagonism against short-term holiday rentals Airbnb is perhaps the best-known and majority visible actor The Spanish regime says the two are related the rise of Airbnb and other short-term rental companies and rising rents and housing costs Obviously there is a correlation between these two facts Consumer Rights Minister Pablo Bustinduy narrated the AP It s not a linear relation it s not the only factor affecting it there are plenty of others but it is obviously one of the elements that is contributing A newest Bank of Spain overview reported the country has a shortfall of homes In the tourist hot spots of the Canary and Balearic Islands half the housing stock is tourist accommodations or properties owned by nonresidents the overview announced Tourism is for sure a vital part of the Spanish commercial sector It s a strategic and very key sector But as in every other economic activity it must be conducted in a sustainable way Bustinduy announced It cannot jeopardize the constitutional rights of the Spanish people Their right to housing but also their right to well-being The country has seen several large protests that have drawn tens of thousands of people to demand more regime action on housing Homemade signs including one that read Get Airbnb out of our neighborhoods at a up-to-date march in Madrid point to the growing anger A balance must be exposed between the constitutional rights of the Spanish people and economic exercises in general Bustinduy commented Banners against tourist holiday rentals hang on the facade of a building in downtown Madrid Spain Tuesday June The writing in Spanish reads More neighbors fewer tourists Tenant power and Looking out for each other as neighbors stirring things up AP Photo Manu Fernandez Tourists wait at the entrance of a building in downtown Madrid Spain Tuesday June AP Photo Bernat Armangue Stickers against tourist holiday rentals are attached on a pipe in downtown Madrid Spain Tuesday June The writing in Spanish reads This is a hotspot for housing speculation Tourist rentals out and More neighborhood speculators out AP Photo Manu Fernandez Tourists carry their luggage in downtown Madrid Spain Tuesday June AP Photo Manu Fernandez Show Caption of Banners against tourist holiday rentals hang on the facade of a building in downtown Madrid Spain Tuesday June The writing in Spanish reads More neighbors fewer tourists Tenant power and Looking out for each other as neighbors stirring things up AP Photo Manu Fernandez Expand Regional governments in Spain are also tackling the issue Last year Barcelona communicated a plan to close down all of the apartments licensed in the city as short-term rentals by to safeguard the housing supply for full-time residents Airbnb explained that while its appeal goes through the courts no holiday rentals would be at once taken down from the site In response to Spain s order Airbnb has noted the platform connects property owners with renters but it doesn t have oversight obligations even though it requires hosts to show that they are compliant with local laws Bustinduy commented Spain s latest action reflects a desire in Spain but also elsewhere to hold tech companies like Airbnb to account There is a battle going on about accountability and about responsibility Bustinduy declared The digital nature of these extraordinarily powerful multinational corporations must not be an excuse to fail to comply with democratically established regulations Bustinduy who belongs to the governing coalition s left-wing Sumar party dismissed the idea that the Spanish executive s action toward Airbnb could discourage specific tourists from visiting It will encourage longer stays it will encourage responsible tourism and it will preserve everything that we have in this wonderful country which is the reason why so a great number of people want to come here he announced The minister also took a shot at low-cost airlines Spain has pushed against allowing such airlines to charge passengers for hand baggage Last year it fined five budget airlines including RyanAir and easyJet a total of million for charging for hand luggage The principle behind these actions is perpetually the same preserving consumer rights Bustinduy declared Powerful corporations no matter how large have to adapt their business models to existing regulations Joseph Wilson contributed to this account from Barcelona Spain