Clampdown on short-term letting could have serious consequences for Irish tourism

A spokesperson for Airbnb claimed 'disproportionate' rules could hurt local families who rely on hosting to help make ends meet.

Irish tourism could be “badly affected” by new legislation clamping down on short-term letting across Europe, it has been claimed.

The Canary Islands, a popular getaway for Irish tourists, is expected to have a draft law passed this year toughening the rules on short lets following complaints from locals priced out of the housing market and from hotels facing taxes and sustainability rules skirted by companies investing in short-term rentals.

In recent days, an investigation was launched in Tenerife after a woman was reported for renting her building's rooftop in Tenerife as a campsite on Airbnb.

Authorities worldwide are grappling with similar issues: Canada, Australia and Italy are among many countries which have tightened the rules around short-term rentals to protect local communities.

Other parts of Spain have already passed similar laws, but without such an emphasis on law enforcement. Barcelona's 70 inspectors are sometimes accompanied by police, according to the mayor's office spokesperson.

The Canary Islands decided to toughen its rules after the number of short lets exploded in recent years.

El Cotillo, a former fishing village on Fuerteventura, has as many holiday home beds as residents.

Here, travel writer Eoghan Corry described the steps taken to tackle the short-term letting system as “interesting politically”, with the issue being passed over to the housing department, which has led the entire debate.

With special attention given to taxation and registration of these rental properties, Fáilte Ireland is looking to clamp down on unauthorised housing, much like Spain.

This clampdown can have serious consequences for tourism. Scotland, the first country to introduce the registration of short-term rental properties, ended up with just 15% of short-term lets registered, while the other 85% disappeared from the system.

It is believed this may have similar consequences for Ireland, with an average of 65,000 Irish properties on Airbnb and Verbo, that have yet to be registered.

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A spokesperson for Airbnb claimed "disproportionate" rules could hurt local families who rely on hosting to help make ends meet.

"The typical host in the Canary Islands shares their home for just 40 nights a year and one in three say the extra income helps them afford their homes and the rising cost of living. 

"Airbnb has worked with governments across the world to balance the benefits of home sharing and housing concerns, and we support new EU rules that provide a model on how to regulate our industry effectively and proportionately," he said.

"There's absolutely no doubt that the workings of Airbnb and the workings of short-term rental across Europe is going to be disrupted by this process,” Mr Corry said.

“I suspect the number of properties on the market will be reduced by this,” he added.