Panic in Majorca as tourism boss warns holiday apartments could be banned for good

The boss of what is said to be the largest hotel chain in has called for a ban on holiday rentals, according to a report. Gabriel Escarrer Jaume, Chief Executive of Meliá Hotels International, said the only exception to a ban should be buildings reserved for holiday lets which aren't alongside properties occupied as residential homes.

Described as a leading figure in the hotel and tourist industry by , Mr Escarrer Jaume claimed the Balearic government's sustainable tourism push has been met with scepticism. He suggested the "pact for tourism" had mis-diagnosed the causes of the Balearics' problems, which include pressure on the availability and affordability of housing for locals.

Mr Escarrer Jaume said "legalising" nearly 100,000 holiday lets had been damaging to society, arguing they should have been returned to the residential market.

The hotel chain chief is quoted as saying: "It has been a huge disappointment, not because of our particular interest, but because it doesn't respond to the general interest and yet does affect the quality and sustainability of our tourism model."

However, holiday rentals association, Habtur, accused Mr Escarrer Jaume of hypocrisy, claiming hoteliers have added to the problems.

Figures attributed to Mr Escarrer Jaume, without citing a source, suggest the number of hotel rooms in the Balearics has increased "marginally", while tourist housing units have surged by 135%.

He argued that all illegal supplies of holiday accommodation should be eliminated as a first step against overcrowding on the islands.

Spain has been grappling with a post-Covid pandemic surge in tourism. Local governments have been searching for ways to limit the number of homes rented out to visitors amid protests from locals angry at spiking rents and house prices.

Mr Escarrer Jaume's call for a ban comes as a tourism lobby group's latest study found the supply of short-term rentals surged by 25% in Spain over the past two years.

Findings from Exceltur's analysis, as reported by , show that despite attempts to curb them, short term lets is growing at an above average pace in several top 50 destinations.

Meanwhile, hotel room numbers grew just 2% between 2022-24, according to Exceltur's crunching of official tourist accommodation data and listings on platforms.

Holiday rentals in Madrid surged 49% between 2022 and 2024, representing 38% of a total 176,702 beds for visitors, according to Exceltur.

Malaga saw tourist accommodation increase by 36% over the same period. It now makes up 56% of the offer to visitors. Barcelona saw short-term rentals increase by 26% despite a moratorium on rental permits, the analysis shows.