Surge in Illegal Second Home Rentals: The Balearics' Tourism Dilemma

The Rise of Non-Market Accommodation in the Balearics

The number of tourists in the Balearics who do not stay in hotels or licensed holiday rental properties is growing at a faster rate than traditional accommodations. Visitors opting for second homes, whether owned or borrowed, have surged by 25% in recent years, outpacing the growth in regular tourist accommodation by 4%.

In 2016, the Balearics Institute of Statistics began tracking this 'non-market' accommodation, revealing an increase from 2.5 million to 3.2 million visitors — a staggering 24.7% rise. In contrast, 'market' accommodation, which includes hotels and licensed rentals, grew by 21.7%.

This trend is particularly pronounced in the quiet months of the year, such as November to January, when many hotels remain closed. During this period, out of 943,000 tourists, approximately 554,890 utilized non-market accommodation, representing around 60%.

The Challenge of Detection

Tourism authorities and industry stakeholders believe these figures mask the illegal marketing of second homes as tourist accommodations, complicating detection efforts. The number of foreign property owners is steadily increasing, with foreign sales accounting for about one-third of all real estate transactions. However, illegal marketing practices are also on the rise, often occurring in the owners' home countries, involving covert payments without using platforms like Airbnb. Consequently, tourism inspectors lack crucial information needed to regulate these properties effectively.

Maria Gibert from the Habtur holiday rentals association states, "This is a problem we have been telling the authorities about for years. I can understand the frustration of the authorities and the inspectors, because these properties are very difficult to control."

Government Response

José Marcial Rodríguez, the Council of Mallorca's tourism councillor, notes that tourists often book stays in their home countries, claiming properties as their own or those of friends and family upon arrival. This issue has significant implications for the Balearic Government's tourism containment strategies, which include plans to increase fines for illegal accommodation: rising to 5,000 euros for minor offences, 50,000 euros for serious offences, and 500,000 euros for the most severe violations.