Spain is cracking down on overtourism - but it could leave them with a gigantic £25bn shortfall. In a bid to tackle tourist numbers impacting on local's way of life, leaders in Spain have laid out a number of regulations - including one on short term rentals . However, according to a report by Oxford Economics, using data from Eurostat and Airbnb , the rule in place could cost the country €30 billion which is equivalent to over £25 billion.
The findings also noted that it would risk 2% of Spain's GDP and 400,000 jobs in the country. Rental platform Airbnb has claimed that Spanish authorities have drawn up their regulations "without taking into account important considerations", for example rural or urban locations and whether the type of activity is occasional or dedicated. In a statement it said: "This has resulted in general bans in some cities, broad restrictive regional regulations or excessive bureaucracy that is driving out those who carry this activity on an occasional basis, mainly families, without solving any of the problems," Majorca Daily Bulletin reports.
The company has also highlighted the benefits that rental activity has on families, rural areas and the promotion it brings for small businesses. It continued by expressing that the regulations are being used as "the scapegoat for the great housing challenges," that Spain is facing. Despite this, there are various destinations in Spain that are facing the challenges of overtourism - including a housing crisi.