The City Council prohibits new tourist rental units in Palma

PalmThe Urban Planning Management of Palm Palma City Council has given the green light this Tuesday to a ban on new tourist rental properties of all types throughout the municipality, through the initial approval of a specific amendment to the 2023 General Plan concerning Tourist Accommodation in Dwellings (ETH). The project, drafted by technicians from the Urban Planning Department, aims to modify various urban planning regulations in order to declare the entire municipality a single zone unsuitable for the commercialization of tourist accommodation.

Palma City Council stated that the ban on creating new tourist accommodations in homes is due to a "political determination" that degrowth is "the only alternative," although it maintained that its impact on property prices could be a "minor factor."

This was announced by the Deputy Mayor and Councillor for Urban Planning, Housing, and Strategic Projects, Óscar Fidalgo, at a press conference following the Urban Planning Department meeting, where this measure was adopted to restrict the growth of this type of tourist accommodation. Through an amendment to the 2023 General Urban Development Plan (PGOU), the entire municipality of Palma will be declared an area "unsuitable" for the marketing of new tourist accommodations in private homes, and the transfer or automatic renewal of existing leases will be blocked.

The ban receives the affirmative vote of everyone except Vox.

This initiative received the affirmative vote of all political parties represented on the council, with the exception of Vox, which abstained. It will subsequently require approval from the governing board and the full city council, although there will be a 30-day period for submitting objections.

Fidalgo asserted that this modification is a "first step" to "prevent the increase" and "pave the way for degrowth," and therefore considered that they have adopted a "courageous" decision "aligned with the general interest."

He also asserted that "it is not an isolated measure," but rather "part of a roadmap," such as the intention to suspend the opening of new hostels or the ban on... party boats.

When will the effects of the ban be seen?

When asked when the effect of this decrease in tourist accommodations might be seen, he explained that current tourist licenses have been obtained under different regulations, but clarified that some of those that are temporary "cannot be renewed," although he could not specify the number for each type.

On the other hand, when asked if the City Council could consider a similar measure by creating new tourist accommodations in other types of establishments or if it had held talks with hoteliers, Fidalgo replied that this had not been discussed in the Urban Planning Department and denied that he had spoken with hoteliers to promote the initiative, but rather that it had only been achieved.

Palma has more than 4,400 tourist accommodations in private homes

Currently, Palma has a total of 4,473 parking spaces.tourist stays in homesThese properties are distributed across 632 buildings – 381 in Palma city, 76 in Playa de Palma/Can Pastilla, and 175 in rural areas. Now, with the approval of this amendment, any increase in this number will be prevented, paving the way for a gradual reduction as properties are permanently decommissioned.

In this sense, the modification of the General Plan will also make it impossible to renew non-permanent ETHs, in addition to the relocation or transfer of the currently authorized places to other locations, because they do not comply with the urban planning condition of suitable area.

Likewise, the forecast of growth of 374 new tourist rental places is eliminated, 231 of which corresponded to Palma capital and 143 to rural land.

Reduction in the maximum number of places

In short, this modification of the General Plan, which prohibits new tourist rental places in homes throughout the municipality, also aims to reduce the maximum number of tourist accommodation places in Palma, promotes a gradual decrease in the existing supply and strengthens the control of illegal tourist accommodation in homes.

This measure, which was approved this Tuesday by the Urban Planning Department for subsequent transfer to the governing board and submission to the plenary session, will be joined by other actions already announced, such as the suspension of the opening of new shelters or the municipal intention to prohibit the party boats throughout the seafront promenade transferred to the Balearic Port Authority (APB).