“It’s important to understand that these record numbers in terms of tourism also pose challenges,” Economy Minister Carlos Cuerpo said in an interview Tuesday with The Associated Press. “And we need to deal with those challenges also for our own population.” Tourism is a key sector for the Southern European nation’s economy, which grew faster than any major advanced economy last year at 3.2%, and is projected to grow at 2.4% this year, according to the Bank of Spain, well ahead of the expected eurozone average of 0.9%.
But a stubborn housing crisis in which home and rental costs have skyrocketed in cities such as Madrid, Barcelona and elsewhere has led to growing frustration about one aspect tied to tourism in particular: the proliferation of short-term rental apartments in city centers. The country has seen several large protests that have drawn tens of thousands of people to demand more government action on housing. Signs at demonstrations with slogans such as “Get Airbnb out of our neighborhoods” point to the growing anger.
In response, the government recently announced it was cracking down on Airbnb listings that it said were operating in the country illegally, a decision that the company is appealing. “We are a 49 million-inhabitants country,” Cuerpo said. The record numbers of tourists illustrate the “attractiveness of our country, but also of the challenge that we have in terms of dealing and providing for a good experience for tourists, but at the same time avoiding overcharging (for) our own services and our own housing,” he said.
The Bank of Spain recently said the country has a deficit of 450,000 homes. Building more public housing is critical to solve the problem, Cuerpo said. Spain has a lower stock of public housing than many other major European Union countries. “This is the key challenge for this term,” the minister said of the country’s housing woes.
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