Responding to resident complains, the local government in Balearic Island have given notice that they plan to limit the number of available hotel bed to 623,624 between Ibiza and Mallorca with an expected 120,000 further cuts over the next few years. According to Spanish authorities, by limiting the number of available rooms for tourists they expect room rates to decrease. ** Editor’s note – free market economics suggests this is backward thinking as if you lower the supply by definition the price must increase **
Also, all homes and apartments must register with the government before listing for rent on sites such as AirBNB and Homeaway. Those that do not face fines up to 400,000 euros!
