The National Commission on Markets and Competition (CNMC) appears to have misinterpreted the specifics of the vacation rental market in southern Gran Canaria, assuming dynamics more typical of large cities like Barcelona or Madrid. Its recent report on the future Canary Islands Law on the Sustainable Management of Tourist Housing overlooks a crucial detail: tourist land in this region was a pioneer long before the arrival of apartment heirs and the large landowners who emerged after the 2008 housing crisis. In this context, it is curious that the agency warns about the possible professionalization of vacation rentals, when in southern Gran Canaria, professional tourist operators have been an inherent part of the model since its inception. This region, the epicenter of tourism activity on the islands, has seen tourist land consolidated with defined criteria to maximize the vacation experience, making it clear that coexistence with residential land has always been a structural challenge.
The CNMC, by insisting on pointing out potential risks such as the replacement of small owners, seems to be rediscovering its true colors. Southern Gran Canaria has historically operated with professional and operating companies that, far from being a novelty, have shaped the economic and social landscape of the destination. Any regulation that ignores these realities could run the risk of being out of step with the nature and history of the Canarian tourism model, as unique as it is essential to the regional economy. In January, the CNMC presented a key report on the future Canary Islands Law on the Sustainable Management of the Tourist Use of Housing. In the document, the agency states that any regulatory framework implemented to control vacation rentals in the Canary Islands must be based on "reasons of general interest," which must be "duly accredited." At the same time, it warns that the proposed measures could lead to the "replacement of small owners" with professional owners, affecting market diversity.
The CNMC also emphasizes that economic motivations seeking to favor traditional accommodations, such as established hotels and apartments, over vacation rentals are unacceptable. The report emphasizes that the proposed measures must effectively demonstrate that they are designed to address issues such as the shortage of residential housing, the conservation of natural spaces, and the protection of neighborhood identity. It also urges the Ministry of Tourism to detail how each specific measure contributes to achieving these objectives in a proportional manner.
Among its recommendations, the CNMC suggests that the regional government conduct a thorough analysis of the actual impact of the regulations on the different areas of the archipelago, paying special attention to stressed zones. It also proposes adjusting existing tourism legislation, such as Canary Islands Law 2/2013, to facilitate the conversion of tourism infrastructure for residential use. This approach, according to the commission, would allow for a balance between economic development and housing needs.
The CNMC warns that the proposed restrictions, especially those aimed at limiting the combined residential and tourist use of homes, could significantly transform the vacation rental landscape. It believes these limitations could lead to this activity becoming residual, which would negatively impact competition in tourism services and restrict options for small owners. The report notes that, although the number of vacation rental spaces is estimated to reach half a million on the islands, the tightening of conditions could force many homes currently operating as vacation rentals out of the market. This would primarily affect individual owners and small investors, favoring a professionalization of the sector that could consolidate its control in the hands of large companies or hotel establishments. The CNMC accuses the regional government of indirectly incentivizing this shift.
Finally, the commission urges the Canary Islands government to conduct a more in-depth analysis of the potential combined negative impacts of the proposed restrictions. It also questions the proportionality of measures such as the automatic suspension of housing permits in areas declared under stress, considering them insufficiently justified and possibly excessive. According to the CNMC, these measures require further evaluation to ensure their effectiveness and fairness in a highly competitive market like the Canary Islands.
