Holiday rentals sector facing 15% decline

Cerdó believes that a fall in tourist numbers this year will affect the rentals sector to the tune of a 15% decrease. Tourism legislation in 2017, he notes, had already provoked a decline. He is critical of obstacles that have been created for the sector and of the lack of information regarding tourist tax spending and the Council of Majorca's zoning for rentals.

While he believes that the planning behind the zoning was sound, the distribution has been "bad", given that it is more restrictive in some municipalities than others. Cerdó also disapproves of increases in rubbish tax that some town halls have introduced for rental properties and of plans to raise rates for these properties, while he points to questions over what rate of IVA (VAT) should be applied - the 21% general rate or the 10% tourism rate.

The holiday rental business, he says, started in Majorca some thirty years ago - in Pollensa in particular. At present, there are 14,500 properties which have the necessary tourism ministry authorisation. These, he emphasises, produce benefits for the whole economy. Wealth is distributed through holidaymaker spend on hire cars and in restaurants and supermarkets.

In general terms, he agrees with government regulation that increases the quality of rental properties but is highly critical of anything that amounts to prohibition.