Skift Take
Mallorca authorities are trying to respond to local frustrations with mass tourism by cracking down on short-term rentals.
Mallorca experienced a drop in short-term rental bookings in July following a regulatory crackdown and widespread protests against overtourism.
Authorities have stepped up new restrictions this year and imposed “hefty” fines on apartment buildings with 12 or more short-term rental units, said Bram Gallagher, economist for AirDNA.
Short-term rental bookings dropped 8% in Palma compared to a year ago, according to AirDNA. Listings dropped 12%.
Thousands demonstrated on the streets of Palma, Mallorca this summer demanding limits on mass tourism. Protestors have blamed short-term rentals for reducing the supply of residential housing and making the city unaffordable for locals.
Bookings in other Spanish destinations have risen. Bookings of short-term rentals were up 5% in Barcelona, according to AirDNA. Canary Islands’ Santa Cruz de Tenerife and Santa Cruz de la Palma experienced a 17% and 30% bookings increase, respectively.
Traveler interest in short-term rentals, especially in cities, has risen in the past few years. According to the latest State of Travel report from Skift Research, demand for short-term rentals in urban destinations with the highest supply grew 21% in 2023.
Surging Demand for Travel to Spain
Mallorca has grown in popularity as an international tourist destination in Spain, which has been having a record year in tourism. International arrivals were up 6% for Mallorca for July and August, according to ForwardKeys, a travel data firm.
Spain has been one of Europe’s most popular destinations this year, with nearly 43 million visiting in the first six months. Mass demonstrations against overtourism have taken place in Barcelona, Malaga, the Canary Islands and Menorca.
