Travel
Cruise caps and cutting off power: European cities get serious on overtourism
Valencia, Budapest and Athens are all putting in place new legislation to tackle overtourism and illegal short-term accommodation.
As the main tourist season winds down, cities are putting in place legislation to control overtourism and crack down on badly-behaved visitors alongside landlords who run illegal accommodation.
Valencia in eastern Spain has announced its plans to cut off electricity and water for illegal tourist accommodation in the city.
The mayor, María José Catalá, believes that the providing of too much water and electricity to short-term lets has a serious impact on permanent residents.
Local media reported that she told the State of the City Debate the existence of tourist apartments “impacts the price of rents, displaces the population,… implies the gradual disappearance of local commerce in favour of shops for tourists, and implies an imbalance in public provisions” which favours tourists over locals.
Catalá appears to be taking the situation very seriously. On behalf of the city council, she has requested the power to sanction illegal tourist apartments, and impose fines of up to €600,000 on landlords who refuse to comply with the new laws.
Records show that, under Catalá, inspections of tourist apartments have increased by 454 per cent this year alone and that police activity against illegal tourist apartments has risen from 73 reports in 2022 to 449 so far in 2024. The closure of some 278 illegal residences has already been ordered this year.
Valencia is following in the footsteps of Seville
The move comes after the council of the southern Spanish city of Seville was told it was within its rights to cut off the water supply to illegal tourist accommodation.
Before the decision was made in late August, Seville had already disconnected the supply to six apartments which were found to be illegal.
While three of the owners appealed, the judge accepted the council’s argument that the apartments were not the owners’ residences, instead taking the sides of neighbours who had complained about noise.
Seville’s council believes there are some 5,000 illegal apartments in the city, in addition to 10,000 legally licenced ones.
Officials confirmed that the water supply would only be restored once the apartments have reverted back to being regular residences.
Tourism in Seville has boomed since the end of the COVID pandemic. The city of just 700,000 people has seen an influx of around 3.5 million visitors a year, most of them choosing to stay in the small historical centre.
Valencia is also considering restrictions on cruise ships in the city
Back in Valencia, and the mayor has also suggested that the city may move to change the rules on cruise ships docking there in the future.
Saying the issue of the boats “deserves reflection” Catalá floated the idea of “limiting and reducing the arrival of mega-cruise ships”.
She announced that there are plans in the works to set up a permanent group with members of the City Council, the Port Authority and the cruise sector “to regulate cruise traffic”.
“We want to design a shared social and environmental sustainability strategy for cruises and ensure quality cruise tourism, seeking the deseasonalisation of stopovers, the distribution of the flow of cruise passengers at the destination and planning,” she said.
Catalá also indicated her team will “prioritise those ships that use Valencia as a base port, that is, those that spend the night in the city and, therefore, that generate a greater economic impact and… seek quality tourism.”
Budapest plans to ban short-term rentals
Hungary’s capital is also cracking down on overtourism, and has just announced it will be banning all short-term rentals in the city.
Budapest residents narrowly voted to ban this form of accommodation – but it won’t come into effect until 1 January 2026.
It won’t be a sweeping measure, however.
From 2026, the ban will only affect one small part of Budapest, District VI, also known as Terézváros.
Despite its relative diminutive size, the ban will likely be felt with some significance as it’s one of the most densely populated areas of the city.
54 per cent of people living there voted in the affirmative on the ban and it’s now suggested it might be just the first of such decisions to be made.
Victor Orban’s government has reportedly been keen to put bans like this in place across the country.
Many people in Hungary are unhappy over short-term lets contributing to an ongoing housing shortage as well as unaffordability for local residents.
Athens will ban some new short-term lets from 2025
Greece’s capital has also announced its plans to ban new short-term lets from 1 January 2025, although the move only seems to be temporary at the moment.
Just one day after the Budapest decision, Greece’s government has announced it will stop issuing new short-term rental licences in the first, second and third municipal districts in the centre of Athens
For now, the restriction will only remain in place for 12 months.
After that period, authorities will take a close look at whether the ban has had enough of an impact on overtourism and the local housing situation before deciding whether or not to extend it.
Previously, the government had only wanted to test out the scheme for 90 days, but it was soon decided that would not have been long enough.
Instead, the year-long trial will apply to districts where short-term lets comprise more than 5 per cent of the total housing stock and, therefore, have a noticeable impact on the lives of residents.
Authorities in Athens will also work with landlords to encourage them to be more considerate to locals and the environment.
Athens tourist tax to rise
Following a summer of natural disasters related to climate change, the local government will impose a daily tax on short-term rentals to deal with the ongoing crisis.
During the busy April to October period, the tax will increase from the current €1.5 a day to €8.
In the low season, it will go up from €0.50 to €2 per day, according to news agency Reuters.
Despite overtourism and forest fires, which have seen countless evacuations, 2024 is set to be a record year for Greece in terms of tourism revenue. It’s expected the country’s income from the sector could reach up to €22 billion by the end of the year.
Such measures haven’t affected other European tourism hotspots too negatively in the recent past.
In August, following the lead of cities like London, Dublin, Amsterdam and Paris, the Czech capital announced it’s planning to limit the amount of short-term tourist accommodation available.
Prague’s authorities are hoping that the proposed move will bring down real estate prices – and ensure residents are not forced out by tourists.
Barcelona has gone one step further still.
The popular Spanish coastal city has announced plans which, it hopes, will eliminate all tourist rentals by 2028. Reaction has been mixed there, however, among local Catalans and the city’s large foreign-born population, which has now reached a significant 25 per cent.
Travel
A 4-year cruise or a €1 house in Italy: Inside the schemes helping Americans skip Trump’s presidency
Searches by Americans for moving abroad soared in the 24 hours after the first polls closed, according to Google data.
Following the recent US election result, Google searches for ‘how to move to Europe’ increased by more than 1,000 per cent in some countries.
Searches by Americans for moving to Canada and Australia soared by 1,270 and 820 per cent respectively in the 24 hours after the first polls closed, according to Google data.
The interest in leaving the States has not gone unnoticed by marketing firms.
A residential cruise ship is now offering Americans a four-year ‘escape’ trip while a Sardinian village has relaunched its €1 house scheme.
Cruise company offers four-year escape from Trump
Cruise firm Villa Vie Residences is marketing a four-year round the world trip to Americans looking to skip Donald Trump’s second term as president.
The Tour La Vie programme offers passengers a stay of up to four years onboard while visiting 140 countries – which doesn’t include the US.
The irreverently named packages include a one-year ‘Escape from Reality’ cruise, a two-year ‘Mid-Term Selection’ option, a three-year ‘Everywhere but Home’ cruise, and the four-year ‘Skip Forward’ trip.
Guests would join the Villa Vie Odyssey, a residential cruise ship which set sail from Belfast in September, several months into its voyage.
“We came up with this marketing campaign before we even knew who would win. Regardless of who would have won, you would have half of the population upset,” CEO Mikael Petterson told US news site Newsweek.
“Quite frankly, we don’t have a political view one way or the other. We just wanted to give people who feel threatened to have a way to get out.”
Prices start at a little under $40,000 (€38,000) a year. For those opting for the full four-year escape, single-occupancy cabins start at $256,000 (€243,000) while double-occupancy costs up to $320,000 (€303,000).
The price includes all food and drinks (alcohol only at dinner), WiFi, medical visits, weekly housekeeping service and bi-weekly laundry.
Sardinian village relaunches €1 house scheme for Americans
In rural Sardinia, the village of Ollolai has revived its €1 house scheme, now targeting Americans exhausted by the election.
The homes-for-the-price-of-an-espresso offer has been relaunched for US citizens “worned [sic] out by global politics” and “looking to embrace a more balanced lifestyle”, local authorities write on the village’s website.
“Of course, we can’t specifically mention the name of one US president who just got elected, but we all know that he’s the one from whom many Americans want to get away from now and leave the country,” village mayor Francesco Columbo told US news site CNN.
“We have specifically created this website now to meet US post-elections relocation needs.”
Those needs include slowing down and recharging with Ollolai’s dreamy Mediterranean lifestyle.
“Nestled in pristine nature, surrounded by incredible cuisine, and immersed in a community with ancient traditions in the rare Earth’s Blue Zone, Ollolai is the perfect destination to reconnect, recharge and embrace a new way of life,” the website claims.
Available properties will soon be listed online with prices ranging from €1 for houses needing substantial renovations to €100,000 for those that are ready to live in.
This is not the first time the village in Sardinia has put houses for a pittance on the market. In a bid to halt a steep population decline, Ollolai began selling off abandoned homes in 2018 to people willing to carry out $25,000 (€24,000) of renovations within a three-year timespan.
Travel
Catalonia’s holiday rental ban may not be allowed under EU law as Airbnb pushes back
Catalonia has said they want to rid Barcelona of its 10,000 holiday lets in the next 5 years.
Catalonia’s recent ban on Airbnb-style holiday rentals breaches EU law, according to a complaint filed with the European Commission by an industry group.
The European Holiday Home Association claims that the ban, introduced by Catalonia in June this year, breaches the provision of services directive.
The Spanish region announced that they wanted to rid Barcelona of its 10,000 tourist flat licences over the next five years. The city has not granted new licences since 2014 but this has not helped to stem a housing crisis, with locals saying they can not find places to live at affordable prices.
Why has Barcelona’s Airbnb ban been challenged?
“We are convinced that EU law has not been respected,” Viktorija Molnar, Secretary General of the European Holiday Home Association (EHHA), said in a statement released on Wednesday.
“By submitting the EU complaint, we hope that the European Commission will take a step further and open a formal infringement procedure against Spain,” added Molnar, whose group represents short-term rental platforms like Airbnb and Expedia’s Vrbo.
The move follows legal concerns raised by the European Commission itself that restrictions brought in by the Spanish region were disproportionate to the aim of tackling housing shortages.
EHHA argues that “unjustified, disproportionate and unsuitable” restrictions breach the EU’s Services Directive, which regulates a swathe of activities from hotels to legal advice. They also said that claims about the impact of Airbnb on housing affordability are “politically inflamed”.
The lobby group may have support from the European Commission itself, whose officials wrote to Spanish authorities to protest the law in February according to a document seen by Euronews Travel.
“The Commission services consider that the restrictions laid down in [Catalonia’s] Decree-law 3/2023 are not suitable to attain the objective of fighting housing shortage and are disproportionate to that objective,” the document said.
Spanish authorities could have also considered less swingeing restrictions and hadn’t offered evidence that short-term rentals were responsible for housing market tensions, it added – noting that there were three times as many empty dwellings as tourist rental properties in Catalonia.
Barcelona is just one European holiday destinations trying to find ways to tackle overtourism.
Cities like Venice have banned cruise ships from stopping on their shores, Athens regularly restricts visitor numbers at the famous Acropolis and Amsterdam is moving its red light district out of the city centre to try and clean up its image.
How the European Commission is taking on holiday rentals
Brussels has already taken action to bring the sharing economy within the regulatory fold, offering new rights to platform workers and hiking value-added tax on short-term lets and ridesharing apps such as Uber.
But the issue could prove totemic for Commission President Ursula von der Leyen – who has created the first-ever European Commissioner for Housing as part of her second mandate, set to take office within weeks.
She has told Denmark’s Dan Jørgensen to “tackle systemic issues with short-term accommodation rentals”, in a mission letter that handed him the housing brief alongside responsibility for energy policy.
A spokesperson for the Catalan government did not immediately respond to a request for comment.
CORRECTION(20 November, 10:02): corrects spelling of Molnar’s name
Travel
Microsoft pitches AI agents that can perform tasks on their own at annual Ignite event
The move has been criticised by other tech companies who have branded Microsoft as being a “panic mode”.
In opening remarks to a company conference in the United States on Tuesday, Microsoft CEO Satya Nadella has set the stage for where the company is taking its artificial intelligence (AI) business.
AI developers are increasingly pitching the next wave of generative AI (GenAI) chatbots as AI “agents” that can do more useful things on people’s behalf.
But the cost of building and running AI tools is so high that more investors are questioning whether the technology’s promise is overblown.
Microsoft said last month that it’s preparing for a world where “every organisation will have a constellation of agents – ranging from simple prompt-and-response to fully autonomous”.
Microsoft elaborated in a blog post Tuesday that such autonomous agents “can operate around the clock to review and approve customer returns or go over shipping invoices to help businesses avoid costly supply-chain errors”.
Microsoft’s annual Ignite conference caters to its big business customers.
Microsoft criticised
The pivot toward so-called “agentic AI” comes as some users are seeing limits to the large language models behind chatbots like OpenAI’s ChatGPT, Google’s Gemini and Microsoft’s own Copilot.
Those systems work by predicting the most plausible next word in a sentence and are good at certain writing-based work tasks.
But tech companies have been working to build AI tools that are better at longer-range planning and reasoning so they can access the web or control computers and perform tasks on their own on a user’s behalf.
Salesforce CEO Marc Benioff has criticized Microsoft’s pivot. Salesforce also has its “Agentforce” service that uses AI in sales, marketing, and other tasks.
“Microsoft rebranding Copilot as ‘agents’? That’s panic mode,” Benioff said in a social media post last month. He went on to claim that Microsoft’s flagship AI assistant, called Copilot, is “a flop” that is inaccurate and spills corporate data.
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