After the protests of part of the population against mass tourism, there are now protests by landlords of tourist apartments. Claims for damages are pouring in. The ban on renting out tourist apartments in Barcelona could prove to be costly.
The president of the Association of Tourist Apartments of Barcelona (Apartur), Enrique Alcántara, revealed yesterday that the claims submitted to the Generalitat following the Decree-Law 3/2023, which provides for the annulment of licenses, already amount to around €1 billion. This amount is expected to increase in the coming weeks. The organisation accuses the previous government of disguised expropriation of a right.
Claims
Together with director general of Apartur, Marian Muro, Alcántara explained that so far 1,500 tourist apartments and about 25 companies that manage these accommodations in Barcelona have already submitted claims to the Generalitat.
The deadline for submitting these claims for the expected losses related to the cessation of operations ends on November 8. The employers of the sector estimate that the damage claims will reach a value of €3 billion in the city of Barcelona alone and €7 billion in Catalonia as a whole.
Barcelona City Council has already announced that the decree will come into force at the end of 2028. Alcántara stressed that the termination of the licenses provided for in the regional decree entails, in any case, a financial responsibility for the public services. This is necessary because, according to them, the measure causes “clear damage” to the owners´ assets of these accommodations.
Traditional rental yields less
Traditional rentals yield much less than tourist rentals. The amount claimed includes the value of the properties and the difference in profit from traditional rents. The difference in profits.
One of the goals of the bill is to offer some apartments currently used as tourist accommodation for the very tense housing market. This could increase the number of rented homes and this in turn could contribute to lowering prices.
Disguised expropriation of a right
Marian Muro described the Generalitat’s decision as a “disguised expropriation of a right”. She said this government action gives rise to compensation for the owners who feel this right has been violated. According to Muro, this situation creates “legal uncertainty and vulnerability” for any sector that carries out an economic activity covered by the mandatory permit.
The hope of the employers’ association of tourist apartments is that the new socialist government of the Generalitat will be more sensitive to their demands.
Effects on the Catalan economy
Enrique Alcántara has already requested a meeting with President Salvador Illa to gauge the opinion of the current government. The president of Apartur emphasised that the new government was forced to face the consequences of the decree. This was approved by the previous government. He insisted on the need to launch an “in-depth reflection” on the negative effects of this type of decision. Not just on those affected, but on the Catalan economy as a whole. As for the Barcelona City Council, he regretted that it does not seem to have any intention of entering into a dialogue with those affected.
Furthermore, Alcántara pointed out that the hotels are responsible for the “irreversible destruction” of thousands of homes in Barcelona. This is because most of them are built on residential land.
Also read: Legal battle expected in Barcelona over ban on tourist apartments