We’re already at the height of summer and many are predicting a better forecast for tourism than summer 2020. Favorable prospects and health figures as a result of the vaccines lend themselves to a tourism scenario that, although different to what we’re used to, is undoubtedly more optimistic than the results seen in the previous summer season. Just over six months ago, the Spanish Statistical Institute (INE) revealed a pilot study on holiday lets in Spain. After over a year with the pandemic, the question is what’s the state of holiday lets in the country?
Holiday lets by numbers and regions
The holiday let boom in Spain reached 321,000 holiday rentals in August 2020. This is the equivalent of 1.3% of all residential properties in Spain. However, in February this year, the number of registered properties dropped to 249,000, 8.3% less as a result of the pandemic.
76.5% of holiday lets are in coastal areas with Alicante, Malaga, the Balearics, Barcelona and Las Palmas at the head. At the other extreme are provinces such as Palencia, Soria, Álava, Badajoz and Zamora.
If we look at regional statistics, the regions with the highest available holiday lets are Andalucia (67,392 holiday lets), Catalonia (63,199) and Comunidad Valenciana (54,638). Just 23.3% of holiday lets are located inland – Madrid has the most with 19,597 properties (6.1% of the total), although this varies depending on the district in the city: Centro (6,693), Salamanca (1,061) and Chamberí (915).
The number of beds in holidays is similar to those in hotels
How does this translate in terms of number of beds? According to the data in the INE study, the figures represent a total of 1.6 million beds, just 200,000 fewer than those offered by the Spanish Confederation of Hotels and Tourist Accommodation (Cehat), the largest association in Spain. However, it’s important to bear in mind the particular circumstances of 2020 caused by the pandemic when many hotels were forced to close because of the drop in tourism and many holiday lets taken off the market.
Link between the rise in holiday lets & increases the property market
This data contrasts with those from the Housing and Land Institute (Observatorio de Vivienda y Suelo), according to which state-provided housing in Spain is lower than holiday lets with 290,000 properties. This percentage places Spain six points below the EU average.
The INE statistics can also be used to measure one of the problems that tends to affect this type of accommodation: the pressure it places on the housing market by reducing the number of properties available for residential use. In 16 municipalities with more than 1,000 holiday lets, over 10% of the total housing stock forms part of the holiday rental sector.
In municipalities, the share is even higher. For example, in La Oliv, in Fuerteventura, almost a quarter of all homes (23.7%), are holiday lets. The situation is similar in Pollença (23.2%) in Mallorca and in Begur (19.8%) in Girona.
Several studies attribute the rise in holiday lets and platforms such as Airbnb to the cause behind the rise in rental rates of up to 2%. To the extent that the authorities in some places such as Mallorca and Valencia took measures to regulate it. The island prohibited holiday lets last year and Valencia limited holiday lets to apartments on the first and second floors only.
Good economic outlook for holiday lets in Spain
At the other end of the spectrum, some research indicates that each holiday let will add over €36,000 to local businesses this season. As Bronson López, CEO de Superanfitriones (SuperHosts), said at the 5th Cadiz Tourism Forum, travelers who choose this type of accommodation stay longer in the destination and spend more on local businesses. This makes them vital allies of the self-employed and SMEs who have been particularly affected during the pandemic and real engines of wealth creation for municipalities.
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