Airbnb may finally pay the price of long-simmering tensions about overtourism in Spain.
The Spanish government announced on Monday that it has fined the online rentals giant 64 million euros ($75 million) for advertising unlicensed rental listings in the country. This decision is the latest in several months of back-and-forths, as the government previously ordered Airbnb to remove more than 120,000 listings it identified as unlicensed.
While Spain’s Consumer Affairs Ministry said the fine was a final decision and couldn’t be appealed, San Francisco-based Airbnb is reportedly planning to challenge it in court. The company didn’t immediately respond to a request for comment from Fast Company.
ADDRESSING HOUSING CRISIS
A record 94 million foreigners visited Spain last year, a 10% increase from 2023, making it one of the most-visited countries in the world by tourists. But the proliferation of private tourist accommodations has contributed to a housing crisis and there have been several, large anti-tourism protests in the country in recent years.
Tasked with addressing the housing crisis is Pablo Bustinduy, the consumer affairs minister.
“There are thousands of families living on the edge because of the housing situation, while a few enrich themselves with business models that force people out of their homes,” Bustinduy said in a statement. “No company in Spain, however large or powerful, can be above the law.”
AIRBNB RESPONDS
Airbnb issued a statement to several news organizations indicating that it has been working with the Spanish government since short-term rental rules changed in July to enforce a new registration system. On its website, Airbnb also has a lengthy explanation about “responsible hosting” in Spain.
“Airbnb is confident that the ministry actions are contrary to applicable regulations in Spain and we intend to challenge this fine in court,” a company spokesperson said in a statement published by Reuters.
Rental listings in Spain are still available for booking on Airbnb’s website. While other companies similarly facilitate private rental agreements, this particular platform’s popularity has made it a target of anti-tourism sentiment in Spain and beyond.
In the southern beach town of Tarifa, for example, Airbnb indicates there are more than 800 listings available for a one-week, off-season rental in January. What’s more, there are also dozens of hotels in the area. The town has a population of less than 20,000 people.
For the three months ended in Sept. 30, Airbnb reported quarterly revenue of nearly $2 billion for the Europe, Middle East, and Africa region, its second-largest market behind North America. That marked a 14% gain from the same period a year ago, more than the company’s revenue growth of 10% across all regions.
For a company with a market cap of more than $79 billion, investors don’t seem too concerned about the prospect of a $75 million fine. Airbnb shares rose more than 2% in mid-day trading Monday, even as the tech-heavy Nasdaq Composite Index fell about 0.5%.
source https://www.fastcompany.com/91460597/spain-airbnb-unlicensed-property-ads
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