Short-term rental booking platform Airbnb has hit back at Spanish restrictions on rental properties, stressing that they will have severe repercussions for both income and jobs.

Citing research undertaken by Oxford Economics in late 2024, Airbnb warns of 400,000 jobs being put at risk by the regulations, alongside almost €30 billion of income.

The Spanish government implemented new regulations on short-term rentals on 2 January. Any property owner wishing to rent out their house is now required to be registered in a national database and obtain a permit before they can list their property on booking platforms.

Accommodation providers are also required to collect sensitive personal information from their guests, including bank details and personal identifiers. Spain has also proposed to raise VAT on short-term rentals to match the 10 per cent paid by hotels.

Although it went live in January, the regulation won’t be fully enforced until 1 July. After that date, property owners risk fines of up to €600,000 for non-compliance.

Why is Spain placing these restrictions on rental properties?

For the Spanish government, companies like Airbnb are fueling a housing crisis that can only be stopped through regulation.

“Our obligation is to prioritise use of homes over tourist use,” Prime Minister Pedro Sanchez said at a press conference last week. “There are too many Airbnbs. What’s lacking is housing.”

Sanchez claims that non-residents from outside the EU bought approximately 27,000 houses and apartments in Spain in 2023, not to live in but to make money from. “With the housing scarcity that we have, we clearly cannot allow this,” he concluded.

Alongside restrictions on who can rent out houses and new red tape for potential landlords, Spain is hoping to apply a tax of up to 100 per cent on property purchases for non-EU buyers. This would include buyers from the UK.

Another reason for the changes is residents speaking against the effects of overtourism. Throughout 2024, parts of Spain were rocked by dramatic anti-tourism protests at visitor hotspots, with more expected in 2025.

Despite local protests, Spain saw a 10 per cent increase in visitors in 2024, with 94 million foreign tourists visiting according to Tourism Minister Jordi Hereu.

For property owners, the implementation of these new rules is an unwelcome and often confusing addition.

“There is a lot of uncertainty about it,” says Samuel Toribio, head of Europe at rental platform Homelike. “We are seeing different layers of legislation being applied at the same time that in some cases are contradictory.”

Toribio notes that these different applications at municipal, regional and nationwide levels are causing confusion in the market. While the national policy requires a registration number, some regions are implementing the rules differently.

In Andalucia, for example, the rules change depending on the length of the rental term, and in Madrid, a rule is being passed preventing any new short-term rentals in the city centre. “There is a lack of standardisation in the scene that leads to worrying uncertainty,” he added.

Airbnb warns of impacts on rural communities and small businesses

The Oxford Economics report found that 141 million guest nights were spent in short-term rentals in Spain in 2023. Hosts earned €5.4 billion, but having those guests in Spain earned the economy €29.6 billion through spending in shops, restaurants and local businesses.

“Excessive restrictions imposed on short-term rentals will not only be detrimental to hosts but also to rural development and commercial activity in small local businesses,” says Airbnb. “They will also harm family tourism that simply seeks to find affordable accommodation in non-crowded areas, damaging Spain’s competitiveness as a family destination.”

Data from Eurostat shows a trend towards rural and less-visited locations for short-term rentals. In 2023, 33.6 per cent of nights were spent in rural areas, up from 31 per cent in 2018, an increase of 17.6 million guest nights.

Last year, around 150 small Spanish towns and municipalities welcomed their first tourists, and Airbnb has rentals available in more than 5,000 rural and non-urban localities across the country.

“Airbnb’s role in promoting these rural experiences enhances the appeal of these destinations, empowers local communities, and encourages sustainable tourism practices,” concludes Oxford Economics.

Airbnb says 70 per cent of its bookings are for properties in rural or low-density urban areas.

“By staying in a holiday home, these travellers have discovered new neighbourhoods and landscapes,” said Juliette Langlais, EMEA Public Affairs Director at Airbnb. “By directing tourists away from crowded urban destinations where hotel supply, concentrated tourist flows and local challenges accumulate, short-term rentals have dispersed the benefits of tourism to local families and business in countless rural destinations.”

Rental platform HomeToGo told Euronews Travel that, in 2024, 87 per cent of its searches for stays in Spain were for rural destinations.

Do restrictions on holiday rentals solve overtourism?

Case studies from other cities where restrictions on short-term rentals have been imposed suggest this will not be the golden bullet Spain is looking for.

In Amsterdam, which has implemented a number of regulations on short-term rentals, the tourists haven’t stopped coming. Since the current regulations were introduced in 2022, the overall guest nights in the city have increased by 12 per cent.

While hotels have seen guest nights soar, the impact of the regulations has hit short-term rental owners disproportionately. In the same period, there was a 52 per cent decrease in short-term rental guest nights, which Oxford Economics says could mean €269 million in potential host earnings have been lost.

The report also flags a growing ‘informal’ rental market, where hosts simply ignore the system and rent to guests unofficially, advertising in classifieds or on social media instead of regulated platforms.

“Airbnb understands that in certain areas popular with tourists, where dedicated short-term rentals make up a large share of the housing stock, the impact on housing costs and availability could be relatively high,” says Jaime Rodríguez de Santiago, General Manager of Airbnb Spain. “This is where Airbnb is open to working with governments to enforce targeted and tiered regulation.”

Short-term rentals make up a tiny proportion of the total housing stock in major European cities. Amsterdam has the highest proportion, but it’s still only 1.5 per cent. In Spain, 1.2 per cent of Barcelona and Madrid’s housing is classified as short-term rentals.

But even this is not the full picture, as many of those rentals are lived in for at least some of the year by the property owners. When it comes to dedicated rentals, which are available for at least 180 nights a year, Madrid’s share is 0.1 per cent and Barcelona’s 1.3 per cent.

Airbnb claims that the hotel lobby has been pushing the message that short-term rentals are to blame for housing shortages. But if it’s not Airbnb and similar platforms causing the housing crisis, what is?

“The main issue is the lack of supply,” Samuel Toribio told Euronews Travel. “The rhythm of new houses built hasn’t yet reached the standards of 2007 due to an increased cost of production, lack of professionals in the industry and inability to attract investment.”

Toribio also cites the new residential law in Spain, which came into effect in 2023, as being ‘scary’ for the industry. He says that there is a lack of fiscal incentives for private landlords to put more housing on the market.

Airbnb Spain says the fundamental problem is not enough houses being built. “In the last decade, Spain has built fewer homes than at any point since 1970,” a spokesperson told Euronews Travel. “In 2023, data from the Ministry of Housing shows that the creation of new households in Spain outpaced the number of new homes built by three to one.”

The rental platform also points out that Spain has over four million vacant homes, accounting for more than 14 per cent of its housing stock.

When it comes to overtourism, Toribio notes that discussions are needed that go beyond the current regulations. “There is a huge need for a discussion around potential quotas and the type of tourism that cities can absorb,” he says.

Airbnb and the Oxford Economics report both flag that, by implementing these restrictions, Spain could actually be driving more tourism to the already overcrowded cities and urban areas.

“These regulatory limitations are contributing to Spain’s tourism economy being heavily reliant on international hotel chains, super-concentrated in certain urban and coastal areas,” says Airbnb. “This is fueling mass tourism and driving up accommodation prices for travellers, with little or no benefit to local families.”

The surprise attack on Israel by Hamas in October 2023 saw the tourism industry shut down almost overnight. Governments around the world issued warnings to their citizens not to travel to the Middle Eastern country, and airlines cut their services.

But with a historic ceasefire deal agreed, hopes are high that getting to and from Israel will start to become a lot easier.

Several European airlines have already announced the resumption of their services to Tel Aviv, although rather cautiously. Here are the announcements so far.

Which airlines plan to return to Israel soon?

As the dust settles on the ceasefire agreement, European airlines are already preparing to reinstate their flights to Israel.

According to OAG data, European airlines have already scheduled Israel flights through the spring, adding hundreds more to the route. By mid-May, there will be over 1,200 flights a week to Tel Aviv, up from less than 850 this week.

US airlines, on the other hand, have been slower to return. None of the ‘big three’ – Delta, American and United – have yet publicised new flights.

“Every airline will be keen to return to the market as soon as possible while complying with the necessary advisories,” said John Grant, partner at Midas Aviation, an analytics company. “Airlines operating shorter sectors will be easier to find than those from the United States for instance.”

Grant added that availability of aircraft was a key factor in the quicker return of European airlines.

Two of the early movers in Europe are Germany’s behemoth Lufthansa Group and Hungarian budget airline Wizz Air.

Wizz Air suspended its flights to Israel in October 2023, pulling more than 270 weekly services from its schedule. Ahead of the ceasefire, it began slowly reinstating its services on 15 January, with connections to London, Budapest, Vienna, Milan, Warsaw and Athens. It also resumed its flights to Amman, Jordan, on 16 January.

The Lufthansa Group, which also includes SWISS, Eurowings, Austrian Airlines and Brussels Airlines, has announced a return to Israel on 1 February. However, it is maintaining its suspension of flights to Tehran until 14 February and Beirut until 28 February.

Most recently announced are British Airways and Italian airline ITA Airways.

ITA will restart flights between Rome and Tel Aviv from 1 February but with just one flight per day. Based on what the airline describes as “the evolution of the geopolitical scenario”, it plans to up this to two daily flights from 16 February.

British Airways intends to return to Israel on 5 April. Like ITA, it will begin with a single daily flight, increasing to double daily from 20 April.

Air France intends to resume its Paris to Tel Aviv route on 24 January, according to Reuters, while Beirut will restart on 31 January. Its subsidiary Transavia France expects to resume Tel Aviv flights on 27 January.

Its sister airline, KLM, will maintain its suspension of Israel services until 29 March, as will its own low-cost subsidiary Transavia.

Low-cost Leviathan Ryanair hasn’t firmed up plans to return to Israel, but says it is preparing to operate a full schedule by the summer. However, schedule filings with OAG suggest it could be planning a return as soon as 30 March.

“We rely on (European aviation regulator) EASA guidance … but our view is that we will be back,” said Eddie Wilson, chief executive of Ryanair DAC.”We’ve got a full schedule I think for Tel Aviv…so we will be back there for the summer as I think most of the other airlines will be.”

Competitor easyJet, a favourite with Israeli flyers, confirmed it won’t begin flying to Tel Aviv until 1 June. When it does recommence, it will connect London, Amsterdam, Berlin, Basel, Geneva, Nice and Milan.

“We are really pleased that as of the beginning of June, we plan to resume flights between Tel Aviv and seven destinations across our network,” says Ali Gayward, UK and Israel country manager. “As the first low-cost carrier to fly to Israel, we have a long history in the country and remain committed to our customers.”

Eastern European low-cost airline airBaltic has planned a return to Israel in April, with the airline noting that “airBaltic continues to closely monitor the situation and is following all recommendations from relevant authorities.”

“The safety of our passengers, crew, and flights remains our highest priority, and any adjustments to our operations will be made with this in mind.”

Which airlines never stopped flying to Israel?

Although the vast majority of the world’s airlines pulled their Israel services soon after the conflict began, some carriers never stopped flying at all.

Homegrown airlines EL AL and Arkia had no choice but to continue flying despite the risks. But risk-taking does have its rewards.

National carrier EL AL generated a record $1 billion (€970 million) in revenue during the July to September quarter, with profits up almost 260 per cent compared to the year before. Having the market all to itself was great for the airline, but with more carriers coming back to the country, that will soon change.

Aside from the Israeli airlines, several carriers never stopped their flights to the country. In particular, Middle Eastern carriers have seen the maintenance of their services as politically important following the UAE’s diplomatic recognition of Israel in 2020.

Etihad has kept flying into Tel Aviv throughout the conflict. So has flyDubai, which has held up an impressive schedule of services over the 15 months.

Emirates did continue its services for some months, but cancelled all flights from early October 2024 following the Iranian air strike on Israel. Euronews Travel has reached out for clarification on when these services will restart.

The UK Foreign Office (FCDO), which is quick to update its advice following political turmoil, lifted some of its travel warnings for Israel in December. Specifically, it no longer warned against ‘all but essential travel’ to many tourist hotspots including Tel Aviv, Jerusalem, Eilat, the Dead Sea, Galilee and Haifa.

The FCDO still advises against all but essential travel to areas within some parts of Israel and the Occupied Palestinian Territories including Gaza and the West Bank. It also advises against travel to areas within 500 metres of the border with Syria and Gaza.

National advice varies by country. France, for example, says its citizens are “still advised not to travel to Israel and the Palestinian Territories, except for compelling reasons.”

Germany says, “Travel to Israel and the Palestinian territories is warned against.” Spain says, “Given the situation in the region following the Iranian attack on Israel on April 14 and the possibility of flight cancellations, travel to Israel is not recommended.”

However, many of these travel warnings have not been updated since the January ceasefire was enacted.

Israel is most definitely open for business, and since the ceasefire, will be hoping for a return of tourists this summer. If you’re considering visiting Israel, stay up to date with travel advisories and check the latest situation before you go to stay ahead of any changes.

Visiting the UK is about to get more expensive, as the rollout of the nation’s new travel permit gets underway.

Visitors from Europe don’t need an Electronic Travel Authorisation (ETA) until April, but for other international visitors, the permit was a requirement from 8 January. But less than a month into the scheme, the UK Home Office has announced plans to hike the price of an ETA.

Under the proposed amendment, the ETA fee will rise to £16 (€18.91), from a previous fee of £10 (€11.82). The silver lining in the announcement is that transit passengers will no longer need to pay the fee at all.

Read our full guide to the UK’s new Electronic Travel Authorisation (ETA): who needs it, how long it’s valid for and how to apply.

“The decision to increase Electronic Travel Authorisation (ETA) costs by 60 per cent is a staggering blow to the UK’s tourism industry and businesses across the country,” says Joss Croft, Chief Executive of UKinbound.

How much more will a UK ETA cost now?

The proposed changes will see the cost of an ETA application rising from £10 (€11.82) to £16 (€18.91), a 60 per cent increase.

The UK Home Office says these changes are to “reduce the reliance of the migration and borders system on taxpayer funding,” and estimates they will raise £269 million (€318 million) each year.

The proposed price hike will be debated in the UK Parliament and will need to be approved before going ahead. But if it’s approved, the new price will be in place quickly.

How has the travel industry reacted to the ETA price increase?

The International Air Transport Association (IATA), which speaks on behalf of 340+ airlines worldwide, has been vocal in its opposition to the price hike.

“Proposing to increase ETA costs just a week after the system was introduced is bewildering,” says IATA director general Willie Walsh. “If implemented it would be a self-inflicted blow to the UK’s tourism competitiveness.”

Walsh further points out that, in November last year, the UK government pledged to boost tourism by 30 per cent, aiming to stimulate arrivals to 50 million by 2030. “Gouging these travellers with a 60% increase in the ETA is a very bad start,” says Walsh.

“It’s time for the UK government to see the big picture,” Walsh continues. “It has everything to gain by making the UK a more cost-competitive travel destination—including the substantial tax revenues that travellers generate. It makes no sense to discourage visitors with high costs even before they set foot in the country.”

AirlinesUK, the association of UK airlines, similarly rebuffed the price increase, with CEO Tim Alderslade commenting the move was “bitterly disappointing.”

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Do transit passengers need a UK ETA?

While the increased price will be upsetting for some, the u-turn on charging transit passengers has been widely welcomed by the travel industry.

It means that if you are just stopping in the UK to connect to another flight, and not going through immigration, you don’t need an ETA.

London’s Heathrow Airport had previously said that it risked losing four million passengers a year if transit passengers were charged.

“The removal of airside transit passengers from the ETA scheme is the right decision, and we welcome it,” said Thomas Woldbye, Heathrow’s chief executive. “It shows that the government is listening to industry concerns and is willing to make necessary changes to strengthen the UK’s competitiveness and drive economic growth.”

Only Heathrow and Manchester airports have transit facilities for passengers, and will therefore be the only facilities where ETA-free travel will be allowed.

It’s important to note that only proper connecting flights will unlock the ETA-free transit. If you are making your own arrangements to travel onward from the UK and need to pass through border controls and check in again, you will still need an ETA.

The UK government had previously shunned the idea of ETA-free transit, stating that it would risk illegal migration. It will be following the situation closely and reserves the right to re-introduce ETAs for transit passengers in the future.

“We urge that this exemption is made permanent,” says Alderslade, “given the vital role that passengers transiting the UK play in making vital international routes viable, particularly to growth markets.”

Does the ETA threaten UK tourism?

“There is a false assumption that international visitors will continue to choose the UK, even if we hike up prices,” says Joss Croft. ”International tourism is a competitive industry and the two key motivators to visit a destination are value for money and the quality of welcome. This move damages our standing on both fronts.”

In comparison, the European Electronic Travel Information and Authorisation System (ETIAS) which launches later this year will cost less, offer more, and last longer.

The ETIAS is expected to cost €7 and will be valid for three years. It will be free to those over 70 and under 18, allowing entry to 29 Schengen countries. A family of four would therefore pay €14 to visit 29 EU countries with an ETIAS, but to visit the UK with an ETA would cost £64 (€75.65).

UKInbound warns that, when combined with the other high costs of visiting the UK, the new authorisation threatens to harm the country’s competitiveness. International visitors can no longer shop tax-free, are subject to 20 per cent VAT on hospitality, and could find themselves paying a tourist tax, depending on where they stay.

In comparison, France, Spain, Italy, Austria and Finland charge just 10 per cent VAT on hospitality. Germany, Switzerland, Portugal and many other nations charge less than that. Only Denmark has a higher rate of VAT at 25 per cent.

Adding to the concerns is the UK’s proposed hike in Air Passenger Duty (APD), which is already the highest in Europe. In 2026, rates will increase by £2 (€2.36) per passenger for short-haul flights, £14 (€16.50) on flights between 2,001 and 5,500 miles, and by £8 (€9.45) on the longest flights.

“The 60% uplift in visa cost brings another tax rise to the travel and tourism sector, which risks stifling growth,” warns Luke Petherbridge, director of public affairs at ABTA, the UK’s travel agent trade association. “Coming on the back of increases announced for Air Passenger Duty in the recent budget, we are seeing a layering of additional charges in a sector which has been forecast to grow strongly.”

In 2024, Visit Britain estimates that 38.7 million international visitors arrived in the UK and spent £32.5 billion. Tourism is currently the UK’s fifth largest export sector, and UKInbound says it is currently outperforming the wider UK economy.

“The increased price of an ETA is just another cost that is being placed on the shoulders of international visitors,” says Croft. “We need policies that will allow our industry to harness valuable growth opportunities.”