Spain: Competition Authority challenges Canary Islands decree

Spanish competition regulator CNMC has acted upon an 8-month old challenge it had filed against the Canary Islands Autonomous Community’s decree, which created a new set of regulations on holiday homes in the island region. The decree forbids the building of holiday housing in tourist areas, also excluding areas designated for hotels and multi-story apartments. The regulations also forbid landlords from renting out individual homes, among other unnecessary requirements. The CNMC has found these restrictions to represent a barrier to entry, harming competition in the sector.

Over the past few years the number of available holiday homes on offer has grown considerably due to the rise of so-called ‘peer-to-peer’ markets, which have turned many homeowners into “maverick type operators”. The CNMC has argued that the growth in the holiday home sector has contributed to revitalizing the tourist lodging industry as a whole by providing greater variety in supply, competitive prices and better quality.

Full Content: CNMC

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