The Spanish Canary Islands are taking decisive action against the rise of short-term tourist rentals, such as those listed on Airbnb, in a bid to combat unsustainable tourism and tackle a growing housing crisis. The popular holiday destination has become emblematic of a global dilemma: how to balance economic benefits from tourism with maintaining the quality of life for local residents.

Why the Canary Islands Are Taking Action

According to the Bristol Post, the regional government is preparing legislation that will significantly reduce the number of short-term holiday lets across the islands. The crackdown is born out of a combination of record-breaking visitor numbers and rising rental prices, which have made it increasingly difficult for locals to find affordable housing.

The Canary Islands welcomed more than 14 million visitors in 2023—a tourism high that far exceeds the population of the islands themselves. While this surge in tourism has undoubtedly spurred economic activity, the negative consequences are becoming too significant to ignore. Complaints have been growing louder from both residents and activists who argue that the influx of tourist rentals is driving locals out of their communities.

What the New Regulations Will Involve

Under the new legal framework being proposed, homes in residential areas could be permanently banned from being converted into short-term holiday rentals. The regional government aims to make existing operators reapply for licenses and impose several restrictions to ensure compliance with sustainable tourism and housing goals.

Other regulations could include limitations on the number of days a property can be rented out—similar to the 90-day Airbnb rule in cities like London—or more rigorous checks to differentiate between casual hosts and commercial operators.

The Housing Crisis at the Heart of the Issue

One of the central arguments fueling the crackdown is the sharp rise in rental prices for long-term housing. In areas like Lanzarote and Tenerife, locals are finding it nearly impossible to secure affordable properties. Landlords are often enticed by the greater financial returns from short-term lets, leaving fewer options for residents. This phenomenon is not limited to Spain; cities across the globe are experiencing similar tensions between short-term rental profitability and sustainable housing markets.

In fact, UN agencies have previously noted that the proliferation of short-term rentals globally is contributing to urban housing shortages, putting vulnerable populations at risk.

Impact on Airbnb Hosts

If you’re currently managing or considering managing a short-term rental in the Canary Islands, the proposed legislation could have significant implications. Operators may face the costs and complications of reapplying for licenses, modifying properties to meet new standards, and potential income losses from reduced availability or stricter controls.

The announcement presents a pivotal moment to reflect on how the global Airbnb market is evolving. Property owners and hosts must stay up-to-date with changing local regulations and consider partnering with expert property managers who can help navigate new legislation and maximise profits legally and ethically.

For those managing properties in the UK, especially in areas experiencing increased tourism demand like Bath, leveraging facilities offered by local specialists such as Airbnb management in Bath could provide the insights and support necessary to effectively run compliant and profitable short-term lets.

A Growing Global Trend

The Canary Islands aren’t alone in their stance. Cities like Amsterdam, Barcelona, and New York have also tightened regulations on short-term rentals in recent years. These moves often stem from the same concerns: housing affordability, overtourism, and preservation of neighbourhood identity.

In the UK, these concerns are also coming to the forefront. London, for example, has imposed strict rules around the number of days a property can be used as a holiday rental. As shared in our previous blog post, Airbnb management in London is shaping the future of tourism by setting the standard for sustainable hosting practices and responsible tourism.

What Tourists Should Know

For travellers planning a visit to the Canary Islands, it’s wise to check the short-term rental policies close to your travel dates, as changes could affect your booking options. Choosing a licensed accommodation provider ensures a better experience and supports local economies responsibly.

Additionally, tourists should remain aware of the local cultural and environmental impact of their stay. Responsible travel isn’t just about carbon footprints; it extends to housing, community well-being, and long-term economic sustainability.

Looking Forward: The Future of Short-Term Rentals

The Canary Islands’ Airbnb crackdown signifies a wider shift in how governments are addressing the impact of short-term rentals on housing markets and resident satisfaction. While it presents challenges for property owners, it also creates opportunities for a more balanced approach to tourism that benefits all stakeholders.

If you’re new to the short-term rental space or struggling with the evolving regulations, be sure to check out our guide on how to manage Airbnb properties. Whether you’re hosting in Oxford, Bristol, or beyond, understanding your local market and regulatory landscape is key to long-term success.