Holidaymakers heading to the Canary Islands may soon see fewer Airbnbs available as the Spanish government launches a significant crackdown on short-term holiday rentals. The popular travel destination, which includes Tenerife, Lanzarote, and Gran Canaria, aims to better regulate the booming vacation rental market to protect housing availability for locals and address ongoing issues related to tourism saturation.

The Canary Islands have seen rapid growth in vacation rentals over the past decade, prompting concerns around skyrocketing property prices, reduced housing availability for local residents, and excessive stress on local infrastructure. According to reports from the Bristol Post, nearly one-third of the homes in some areas are being used as holiday properties, pricing out locals who now struggle to find affordable housing.

The government of the Canary Islands is now pushing back with a series of legislative frameworks to cap and regulate short-term rentals in an attempt to retain the delicate balance between community needs and tourism demand. The move aligns with similar actions taken in other European destinations like Barcelona and Amsterdam, where overtourism and housing shortages have prompted reevaluation of the Airbnb model.

Although details are still unfolding, the Canary Islands government has proposed restrictions that would include:

• Limiting the number of days a property can be rented per year
• Designating specific zones where holiday lets are allowed or banned
• Mandatory registration and licensing for all holiday rental owners
• Fines for non-compliance

These new rules could significantly impact both hosts and travellers. Property owners who currently rely on Airbnb income may face reduced earnings or the need to adjust their business models. Travellers, meanwhile, may see a drop in available Airbnb listings and potentially higher prices as supply becomes regulated.

For current Airbnb hosts operating in the Canary Islands, now is a critical time to reassess their strategy. Many may benefit from partnering with airbnb management companies that offer legal compliance, dynamic pricing, and operational support.

These types of partnerships can help navigate evolving regulations and maintain profitability. Those running Airbnb businesses in cities like London, for instance, are already familiar with facing limitations, including the popular 90-day rule that restricts short-term rentals to 90 nights per year without planning permission.

If you’re planning a trip to the Canary Islands soon, keep in mind that short-term rental listings may decrease, especially in high-tourism zones. Booking through credible hosts with verified licenses is advised. Alternatively, using traditional accommodation options may become more appealing if Airbnb choices become scarce.

For those unfamiliar with using Airbnb as a travel option, understanding its pros and cons is essential. Check out this guide on what to know when booking an Airbnb for your holiday.

The situation in the Canary Islands is yet another example of governments taking action to preserve housing for locals while still embracing the benefits of tourism. Striking the right balance is crucial, as overtourism can lead to long-term consequences for communities, including inflation, environmental damage, and social unrest.

Technology-driven vacation rental platforms have revolutionised travel, offering more personalised stays and better value. However, as places like Lanzarote and Tenerife implement rules similar to restrictions already seen in major cities across Europe, the future of travel may lean toward better regulation, transparency, and sustainable tourism models.

The Spanish islands’ move to restrict Airbnb and other short-term rentals highlights broader global tensions around managing tourism responsibly. If you’re a property owner, you may want to explore how cities like Bristol and Oxford are handling Airbnb’s growth by working with local management experts such as Moa & Kin in Bristol or learning how to manage Airbnb properties efficiently.

For guests, due diligence when booking accommodations is more important than ever. As more destinations begin to set firm boundaries, expect a more curated, regulated short-let experience — one that values both local communities and the global travel audience.