Tourism Laws in Spain: Could Stricter Regulations Improve Economic Growth and Public Welfare?
The Spanish government has implemented new measures to address crime rates and promote public safety through monitoring tourism. These new measures have been fully enforceable by the Royal Decree 933/2021 since December 2 2024, imposing restraints requiring both travellers and Spanish residents to register up to 42 pieces of personal information, including phone numbers, email addresses, full names, home addresses, payment methods, and ID numbers. Businesses need to register with the Ministry of the Interior, report data collected daily and keep digital records of the information for three years. Breaching this runs the risk of businesses receiving fines of up to €30,000. Airbnb has told property renters they will need to be registered with the Spanish government if they use its platform and will also collect data from their customers.
The growth of tourism has enabled further routes for organised crime, explaining the growth of drug trafficking, with Spain ranking scoring 5th out of 44 European countries in the Global Organised Crime Index (2023). Criminal networks target popular destinations like Barcelona and Ibiza, explaining its high score of 7.50 in drug markets measured by the Index. Corruption within the industry is also an issue that needs to be legally addressed, with tax evasion common as landlords avoid declaring their earnings, which consequently worsens local wealth inequalities. This is a key justification underpinning the rationale behind the government’s new restrictive measures.
CEHAT, a leading hotel chain which represents over 16,000 businesses and 1.8 million accommodation options in Spain, has criticised the government’s new measures on their violations of citizens’ privacy. Ramon Estalella, CEHAT’s Secretary General, compared the laws to ‘Big Brother,’ speculating they may create ‘chaos’ by overcomplicating the travel process for tourists and creating confidentiality concerns, encouraging them to turn to other destinations. With tourism representing over 13% of Spanish GDP, CEHAT’s claims play upon public fears that the law will put Spain at a competitive disadvantage to other EU tourist markets. Whilst these claims reflect the hindrance to hotel chains’ business interests, the sector itself could be improved with restrictions limiting antisocial behaviour and therefore enhancing long-term credibility for the Spanish tourist sector both nationally and globally.
The negative effects rising tourism has had on Spaniards’ lives was illustrated by widespread public backlash over the summer, with protests over major cities including Barcelona and Malaga, as well as across the Balearic and Canary Islands. Citizens demonstrated against mass tourism creating income inequality and housing inflation, as demand for short-term rental properties has increased and rent is surging, with many locals priced out of their own homes. Pressure on housing in tourist hubs means up to 140 tenants are competing to rent each home. While tourism is crucial for Spain’s economy, with about one in ten citizens relying on visitors for their income, its benefits aren’t evenly distributed. For the majority that are not directly benefiting from the industry, they suffer from the cost of living in gentrified, tourist-centric areas. These challenges highlight the need for balanced policies that address the negative impact on local resources and people while maintaining Spain's global tourist appeal.
The question is: will Spain’s new restrictive measures have a productive effect on economic growth? Restrictions could provide long-term benefits by allowing focus on more sustainable economic investments, that improve Spaniards’ quality of life. Over-investing in tourism poses risks to Spain’s long-term economic development. This is because, as a labour-intensive sector, tourism depends on a low-skilled workforce. This is why there is a heightened need to invest in education, otherwise, tourism may strain the broader economic diversification necessary for sustainable growth in Spain. Over-dependence on tourism may also undermine the potential for growth from investing more in public services and effective practices like responsible consumption.
Overall, the long-term outcomes of Spain’s new restrictive measures could be beneficial if the transition is implemented with a focus on sustainability. Restrictions on tourism could facilitate a move towards eco-tourism, enhancing the green quality of services for both locals and visitors. Tourism’s influence extends beyond the economy, with overcrowding straining the natural environment as well as public services. Addressing the challenge of managing tourism’s negative impacts whilst preserving its economic benefits will require balanced policies. By focusing on sustainability and economic diversification beyond these initial restrictions, Spain can minimise the socioeconomic strain tourism has on locals, with the opportunity to use the industry to maximise growth.
By Emma Zefi
