Gustavo Santana Critiques Holiday Letting Law for Favoring Tourism Over Residents

On December 12, Gustavo Santana, a member of the Socialist Parliamentary Group, expressed strong criticism of the recently approved Sustainable Regulation Law for the Tourist Use of Housing in the Canary Islands.

Concerns Over Housing Market Impact

During a session in the regional Parliament, Santana argued that the new legislation prioritizes the interests of large investors and tourism businesses rather than addressing the needs of local residents. He highlighted that since the announcement of the law by the Tourism Minister in September 2023, the number of registered holiday homes in the region has skyrocketed by over 32,000 units, marking an 80% increase.

According to Santana, this surge in holiday rentals has led to a significant reduction in available housing for residents. He stated that in just a year and a half, the government has removed more homes from the residential market than have been constructed in the past three decades.

Critique of Government Actions

He pointed out that the Economic and Social Council, along with various social groups, had previously warned about the potential negative effects of this legislation. Despite these warnings, the government proceeded with the law, ignoring calls for a moratorium on holiday homes until a more balanced approach could be developed.

Furthermore, Santana criticized the final version of the law, claiming it diverged significantly from the original draft. He accused the supporting parties of making numerous amendments, even after deadlines had passed, which he argued undermined the legislative process and resulted in a lack of social and political consensus.

Implications for Local Communities

He expressed concern that the law allows for the exploitation of up to 10% of developable land for tourism purposes, and up to 20% in certain areas facing demographic challenges. This shift of regulatory responsibility to local councils, according to Santana, effectively absolves the government of its obligations, especially in light of the declared housing emergency.

Moreover, he highlighted a contradiction in the government’s stance, noting that while it claims to combat speculation in high-demand areas, it has not declared a tense residential market in municipalities like Las Palmas de Gran Canaria. Santana described this as a form of demagoguery, suggesting that the government does not genuinely support measures to protect residents.

In addition, the regulation reportedly favors large property owners by offering them extended authorization periods if they allocate part of their properties for residential rental. In contrast, smaller property owners face significant barriers when attempting to regularize their status.

In response to these issues, Santana advocated for an alternative proposal from the PSOE, which would limit ownership to three holiday homes per individual. He argued that this approach would be constitutional and beneficial for small property owners, potentially freeing up thousands of homes for residents.

He concluded by emphasizing that the socialist model aims to rebalance taxation, promote public housing, and ensure a fair distribution of tourism benefits. Santana reiterated that the primary goal should be to provide residents with access to decent and affordable housing, rather than perpetuating speculation and favoring a select few.

Ultimately, he asserted that the approved law fails to guarantee the right to housing, is likely to drive up prices, and will exacerbate the existing imbalance between tourist and residential land use in the Canary Islands.

Key points

• Gustavo Santana criticized the Sustainable Regulation Law for prioritizing tourism interests over residents.
• The number of registered holiday homes in the Canary Islands increased by over 32,000 units since September 2023.
• More homes have been removed from the residential market than built in the last thirty years.
• The law allows for significant exploitation of developable land for tourism purposes.
• Local councils are given regulatory responsibilities, shifting accountability from the government.
• The PSOE proposed limiting holiday home ownership to three per owner as a solution.
• The approved law is seen as failing to guarantee the right to housing and likely to increase prices.