Anticompetitive Canarian Holiday Rental Restrictions Challenged In Court

Canary Islands tourist rental laws challenged on competition grounds

Canary Islands tourist rental laws challenged on competition grounds

The Spanish Competition Authority is to challenge the Canary Islands Tourist Rental Law in the Canarian Supreme Court.

The Comisión Nacional del Mercado de la Competencia (CNMC) believes that the law imposes a range of unnecessary restrictions that don’t correct a fault in the market or protect a public service. As such, it is to challenge the rules in court.

Amongst the rules that the CNMC regards as unjustified or anti-competitive are the ban on private rentals in resort areas, the ban on single renting out rooms in a private property, and the need to register each property before renting.

As the law stands, Gran Canaria tourist rental rules currently only allow property owners in residential areas to rent to tourists and do not allow them to rent out one room or run a bed-and-breakfast.

The CNMC recognises that the online market has made private rentals a strong new sector and a fierce challenger to established accommodation.

However, it  believes that the overall effect on the destination is positive because it increases the range of options for visitors.

Tell that to Lopesan 😉

What does this mean for Canary Islands tourist rental?

The tourist rental laws in the Canary Islands are already in review and this isn’t the first time they’ve been called out for being uncompetitive.

A new draft of the law is in the pipeline, but the hotel companies are still lobbying furiously to stop what they see as uncontrollable competition.

It looks like the advantage is swinging towards private owners, but we still don’t know what the new draft of the law will say.

What is pretty certain is that the new law won’t reverse the right of private owners in non-resort areas to rent out their property to tourists.

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