No Hope: Private holiday lets

Justin in Paris has made 90,000 dollars. Daren in London has raked in 100 grand. In Mallorca, you can expect to coin in 2003 euros per month.

An advert on a Facebook page demanded a damn good clicking. Make money in Spain, it said. Rent out your place to travelers (all American travellers, therefore, as they are lacking an "l") and make 75 euros+ per night. Interesting, I thought. Not because I want to rent out to travelers or even travellers, but because it is quite possible that anyone wishing to - in Mallorca - shouldn't.

On the site, there was Daren, relaxing, sound in the knowledge of the 100 grand he had made. Novi from San Francisco was smiling, thanks to her 30,000 dollars. Justin looked suitably satisfied with his ninety thousand.

The 2003 euros was the calculation for a month to rent out an apartment in Palma or Pollensa. I went and had a look. Was anything actually available in Mallorca? Yes. Not much, but there were some places. By the night or longer. Some with photos, some without. Not having a photo doesn't really "sell" a place, but there might be good reason for there not being a photo.

It's kicking off again. The periodic wielding of the holiday-rental stick. The tourism ministry and friends at the tax authorities are spending their days in earnest perusal of websites, mainly British ones, seeking to identify properties for holiday rent. An announcement was made last year that web pages in particular would come under scrutiny, and a similar announcement has been made this year as well.

John Lance, in his letter to "The Bulletin" (Saturday, 2 July) made the point well enough, as he has in the past, about the lunatic situation in respect of holiday lets in Mallorca. The "grey area" he referred to isn't really all that grey. Want to now license your property for holiday rental? You can't.

There are plenty of properties which are licensed but they date back to and before the registration of, when was it, three, four years ago. Even then, however, there was massive confusion, and the dice were heavily loaded against apartment owners. The greyness of the situation is especially so with apartments, but it isn't so grey if you accept the version which states that you cannot rent out private apartments as holiday lets at all.

The tourism ministry has wielded its stick. In February, there were reports relating to action taken against owners of apartments in Santa Ponsa, to what was being offered, and to the fact that the apartments were being advertised via a UK website. And then there were the fines. Up to 30,050 euros.

We know the arguments in favour of more relaxed rules on holiday rentals: not everyone wants to stay in a hotel; tourists in private apartments and villas tend to spend more; a mix of accommodation types reflects the diversity of the tourism market. We know the hoteliers' arguments against: they have the hoops they have to go through; they invest heavily; they are a key source of employment. Like the endless all-inclusive debate, none of the arguments are new.

The hoteliers can, however, be somewhat disingenuous. When the Santa Ponsa reports were coming in, the head of the local hoteliers' association said that the competition from private apartments was unfair. Yes, but turn it around. Owners could argue the case of restriction of trade and of unfair competition that denies them the chance to properly register and market their properties.

As John Lance remarked, this could all end up with Europe getting involved. But for property owners, the problem is the lack of any co-ordinated voice. The hoteliers know this, and so, as importantly, does the Balearic Government.

It might be remembered that the hoteliers, well before the elections, expressed concern as to the appointment of Carlos Delgado as tourism minister. Now they express contentment, and Delgado, who one might hope might be more willing to throw off the shackles of trade restriction, has announced his intention to collaborate with the hotel sector in making the tourism law more flexible. And one aspect of this is the residential use of tourist establishments. Owned by the hoteliers, I think we can assume this to mean.

Just as is the case with its dealings with the major tour operators, a government in the Balearics, be it PP or PSOE, cannot afford to alienate the hotel sector. If there was hope that the private rental market might be treated more favourably by the new government, then I'm afraid it was probably a forlorn hope. And it will remain one.


Any comments to andrew@thealcudiaguide.com please.