A presentation by Foro Vacacional earlier this year.

19-02-2017@Forovacacional

According to the Foro Vacacional organisation, the new holiday rentals legislation has directly affected more than 6,000 families and will result in a loss of potential business amounting to 527 million euros in global terms next year.

At a conference in Alcudia, the president, Juan Estarellas, who was formerly the president of the Aptur holiday rentals association, described the legislation as a "policy of terror". The reform had come, he noted, at "an ideal time" to ruin a sector that was asking for regulation and not for prohibition. The moratorium on any new licences "doesn't do the sector any favours".

The organisation has presented a report which indicates that there has been a 40% increase in holiday rental demand in Majorca this summer and a rise of 94% in Minorca. Average occupancy of rental properties between September last year and August this year was 65%, and 82% of properties received maximum quality rankings from clients.

Since the new regulations came into force, however, there has been a 30% drop in business. This is leading to a 15% increase in prices for regulated (legal) tourist accommodation, while it is generating an increase in unemployment and is bringing about the closure of businesses and the "ruin" of many families. Estarellas observed that almost 21,000 properties have been affected of which 4,600 are second residences.

The vice-president of the Majorca association of tourist villa holiday businesses, Yolanda Loeffler, said that owners in the association - some 1,400 - are concerned that they will not be able to get new registrations, despite the majority marketing stand-alone properties. Cristina Meca of Fincallorca noted that many owners had undertaken renovations of properties in order to rent them out but are now unable to.

Foro Vacacional is encouraging any owner facing proceedings to appeal against them and claim that the right to lease a property is covered by the Constitution. It also suggests that a change in government after the next election (in 2019) will bring about an amendment to the recent legislation.

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john hughes / Hace 22 days

ECOnomic terrorists Gabby Barcelo and his lot

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Jason / Hace 26 days

Frank... I have nothing to with rentals at all as I said before do I need to say it again !! My post makes plenty of sense to most people ! I would stop guessing because you are a long way off !! September is a month not a year and usually a very good month for business but this year is very quiet due to the rental legistration next year is going to worse . Sorry to hear you are another victim of this backward thinking government .

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Pollensa1946 / Hace 26 days

On our recent Pollensa visit I voiced that I thought the area (town and port) was busier than typical of past years in September. However, one business owner said that she found it a lot quieter than usual for September. One conclusion would be the same or more tourists but spending less money. Interesting to see how 2018 pans out.

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Frank / Hace 26 days

Hi Paul. Could be, but as Foro Vacacional and Abtur are associations for holiday apartment owners and agents, of which I am a member, I assumed his post related to that, as we are the most affected. Oh well.

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Paul / Hace 26 days

Frank - from Jason's posts, I would assume he runs a bar/restaurant/shop and is suffering as a result of fewer tourists being there as a result of the rentals crackdown

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Frank / Hace 26 days

@Jason. Re-read your own article chump. How can you have a bad September if you don't do holiday rentals, - and how can " September usually be a good year" ?. If you don't do holiday rentals you must do long-term rentals, so how are you affected by the new tourist laws that you're bleating about ? I'm not being a "smart-ass", your post doesn't make sense !

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Jason / Hace 27 days

Frank....I don't do holiday rentals !!!! I'm 70% down in September as direct result of lack of people due to rental legistration and next year looks a lot lot worse. I suspect most resorts are feeling it ! Get your facts right before trying to be a smart ass !!!

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Frank / Hace 28 days

@Jason. The new laws only apply to rentals of less than a month. You're only affected if you let for just a week or two, - so if you're affected by this new law your bookings should be down by 100% surely ?

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Ron / Hace 28 days

Leaving aside for a moment the looming Armageddon in Catalonia, I would like to see mass demonstrations in the streets here against the totally destructive policies of this minority government, Head honcho from Més only had 14% of the vote when he started but has crept up to be the destroyer of free enterprise on those islands, and will be responsible for a predicted €525 million net loss to the Balearic's economy and extreme poverty for many families. I don't think we can wait until their term is up. Damage already done to tourism will take years to repair. I fear that it will never recover from this - given the alternatives that tourists have. Many residents among the British community are leaving - and I suspect Germans as well. A good thing many may say - but we have all spent a fortune here supporting businesses etc. over the decades and deserve to be treated better. At least EU residents here should be given a vote given how much they contribute to the economy.

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Rob / Hace 28 days

We cannot wait until 2019 we need this policy to be changed now.. people pressure!!

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