The Balearic government has imposed a freeze on the private ‘bed exchange’, preventing the issuance of new holiday rental licenses and an increase in hotel beds on Mallorca and its neighboring islands until 2026. However, those who already have a holiday rental license can continue to operate. The amendment to the Balearic Tourism Law was passed by emergency decree.
Over the next four years, island councils will determine the conditions and plans for the allocation of licenses and the number of beds in their respective municipalities. The councils are required to assess the tourism impact on their communities and vacation spots, among other factors. The regional government aims to reduce the number of beds available, and any unused quotas will expire if the island councils do not act. In July 2020, the government of Mallorca imposed a cap on guest beds, leaving a maximum of 430,000 on the island, 315,000 of which are in hotels, and 115,000 in holiday properties.
Mallorca, Ibiza, and Formentera were poised to add approximately 20,000 overnight accommodation spots over the next two years. However, a moratorium has been imposed, including in Menorca where the allocation will be regulated by the island’s regional plan.
Previously, individuals wishing to engage in holiday renting were required to obtain a touristic license and purchase a corresponding number of guest places from the bed exchange. But new applications are no longer being accepted, and only those submitted before and up to the date of the decision’s publication in the Balearic Government Official journal on February 11, 2022, will be processed.
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