Barcelona Tourist Flats Demand €3bn After License Crackdown

The tourist flat sector in Barcelona seeks €3bn in compensation following a recent license crackdown. Discover the potential impact on tourism.

In a perplexing turn of events, the city of Barcelona, renowned as one of the globe's most frequented destinations, enacted a controversial ban on new hotel constructions in its city center back in 2015. This decision has recently escalated into a significant crisis, as the local government has opted to revoke licenses for over 10,100 tourist apartments. The repercussions of this policy shift have led to staggering compensation claims that could reach as high as €3 billion.

During a meeting held on Monday, Enrique Alcántara, the President of the Association of Tourist Apartments of Barcelona (Apartur), disclosed that claims exceeding €1 billion have already been lodged, with projections indicating that this figure may swell to €3 billion by November 8. These claims are predicated on the current and anticipated financial losses faced by approximately 1,500 property owners and 25 management companies, all of whom are grappling with the implications of Mayor Jaume Collboni's ambitious plan to eliminate all tourist apartment licenses by 2028.

However, the ramifications of this policy extend beyond Barcelona's borders. The initiative has been broadened to encompass 262 additional municipalities throughout Catalonia, where local councils will now be restricted to approving licenses for a mere 10 tourist apartments per 100 inhabitants, contingent upon the availability of land for residential development. This regulatory shift threatens to impact a substantial portion of the existing 95,000 tourist apartments, with owners poised to file compensation claims amounting to an eye-watering €7 billion at the regional level.

The Catalan government has posited a direct correlation between the proliferation of tourist apartments and the diminishing availability of long-term rental housing. An official remarked, “This trend exacerbates the challenges faced by individuals and families seeking access to regular housing amidst a backdrop of escalating demand.”

The Government's "Hypocrisy"

A decree issued in 2023 stipulates that the approval of tourist apartments in Catalonianecessitates the prior endorsement of a Land Use Plan by city councils. With Barcelona lacking such a plan, all existing licenses are set to be automatically annulled by November 2028. Mayor Collboni defends his stance by highlighting the acute housing crisis plaguing the city, where rental prices have surged by 68% and property purchases have become 38% more expensive since 2014, rendering Barcelona increasingly inhospitable for its residents. Tourists and digital nomads have been largely scapegoated for these rising costs.

This summer, a notable protest erupted, with over 3,000 residents taking to the streets to voice their discontent with mass tourism and escalating housing expenses. Armed with plastic water pistols, demonstrators targeted individuals perceived as tourists, while others cordoned off restaurants and hotels with red tape, reminiscent of police crime scene barriers. Amid chants of “Tourists go home” and “Barcelona is not for sale,” Mayor Collboni announced the ban on tourist apartments on June 21, ostensibly to mitigate the adverse effects of overtourism.

Yet, Alcántara has labeled the mayor a “hypocrite,” as Collboni appears poised to approve the construction of new hotels on “residential land,” provided they serve “cultural purposes,” a practice currently prohibited. Alcántara contends, “The ‘supposed’ solution of constructing more hotels instead of permitting tourist apartments to combat overtourism is disingenuous, given that many hotels in Barcelona occupy land once inhabited by locals.” He further asserts that the government has irrevocably dismantled thousands of homes, while tourist housing constitutes a mere 1% of Barcelona’s housing stock, which he argues is the most sustainable solution.

Impact on Tourists

The implementation of this new regulation is anticipated to adversely affect at least 40% of Barcelona’s tourists, according to Marian Muro, the manager of the tourist apartment association. Muro characterizes the situation as “a disguised expropriation of a right,” asserting that the construction of new hotels will inevitably reduce housing availability. This development is merely the latest in a series of contentious decisions made since the tenure of former mayor Ada Colau, a self-identified Okupa (squatter). The prevailing sentiment among locals is that her administration has exacerbated issues related to tourism, tourism taxes, and public safety, creating a tumultuous environment for both visitors and residents alike.

Barcelona Tourist Flats Demand €3bn After License Crackdown

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