Spain’s Balearic Islands will from Tuesday penalize landlords for illegally renting apartments to tourists with fines of up to 40,000 euros ($47,228) amid a backlash against the effects of mass tourism across the country.
The move is an escalation in efforts to crack down on home-sharing sites such as Airbnb by city councils or local authorities in Spain, as concern mounts over the side-effects of their increasing popularity.
Airbnb, much like ride-hailing firm Uber, is facing a crackdown from legislators worldwide triggered in part by lobbying from the hotel industry which sees the rental service as unfair competition.
In the Balearic Islands, which drew more foreign visitors than any other region in Spain this June, rental costs have jumped and there are fears of a housing shortage for residents.
Rental prices in Palma de Mallorca, the Mediterranean archipelago’s biggest city, have risen 40 percent in the last five years, according to property platform Mitula.
Read the full story at Reuters.