24/04/2018 00:00
It is a bold move and in some ways a gamble. Palma council has decided to ban apartment holiday rentals in the city. In other words landlords can no longer rent out their property by the week or day to visiting tourists. The upside of the move is that it should mean that there will be more apartments for long-term rent in the city and costs could even fall as well. But the downside is that the city economy could be hurt because obviously holiday rentals bring plenty of cash for restaurants, shops and bars.
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The fact of it is - the expats or should I call us "immigrants" that live here have all added to the population resident boom. Mallorca is busy even now in the winter - there are traffic jams on the Via Cintura. Traffic jams going into Son Castello in the mornings etc. ALL these residents have jobs because of Tourism - whether you are the Editor of the English paper or a Car Salesman. I would say 95% of employment on this island is connected directly or indirectly to a Tourism Economy.If Hotels changed buildings into a variety of studio, one and two bedroom apartments. The demand in cities is for a short term rental whether tourist, or contract work etc.The ugly Gesa building on the front - could be turned into a Holiday Letting apartment complex - with a mix of high end beautifully presented, minimalist and chic apartments - however, the lack of a terrace would not be appealing, but you could put on the terrace a fabulous panoramic view gardens and coffee bar !!!
An awful lot of businesses, particularly hospitality, coffee shops etc are labour intensive, and rely on minimum wage earners. I suspect that the rapid rise in rental prices in the capital may have led to the increase in your cup of coffee. Workers are going to need to be paid more to afford to rent, and that is going to come from increased prices to the customers.
Congratulations to Palma Council for putting residents and workers first. It’s locals that build communities not transient visitors.
BBC News website front page this lunchtime - Spains Palma to ban holiday rentals - so a lot of people who didnt know will know now Great advert for tourism not. And Palma to a lot of people is the island, not just the city.
So you think that banning rentals in Palma will mean more long-term rentals,personally,I think that it will mean lots of apartments being put up for sale at prices way beyond what most locals can afford. Perhaps if more affordable homes had been built,this situation would never have arisen.
The introduction of 'Boutique ' Hotels, and the numerous Hotels already established in Palma. Should be sufficient for the Tourist use. Although many are All Inclusive tariffs, and the trade for bars and restaurants will be less. It is a cause for concern for those that have obtained apartments on a 'Buy to Let' basis. Their plan to apply the rental income, to pay the mortgage, being put into jeopardy, if not finished .