War between governments over the rental of private boats

PalmSince July, the Spanish government has allowed private individuals to rent out their boats for commercial use for up to three months per year. However, during this period, a boat rental company—the well-known nautical charters—must manage the vessel, which must meet the same technical requirements as boats rented year-round. The state government's regulations have sparked a clash between executives of Pedro Sánchez and Marga Prohens.

With a photo on Instagram, the PP of the Islands The Balearic Islands government has denounced the state regulations, claiming they "permit nautical Airbnb through a unilateral resolution by the Ministry of Transport, which has faced widespread public rejection." Similarly, the Popular Party warned that the measure "poses a risk to the Islands" and even suggested it could lead to "more overcrowding and less safety," since the option for private individuals to rent to third parties could increase the use and navigation of boats. They demanded "the withdrawal of the state resolution, the opening of a dialogue process, and the strengthening of safety and coastal preservation." The government did not remain passive and in August responded to Sánchez's initiative with a decree regulating boat rental activity and expressly prohibiting the tourist rental of private vessels, the opposite of what the state regulations allow. The Director General of Ports and Maritime Transport justified the Balearic government's decision, noting that charter boat rentals have decreased by 20% in the Balearic Islands. "If there are fewer boats available for rent, it makes no sense for the State to authorize more licenses. Whoever came up with this idea really outdid themselves," he argues. Along the same lines, he celebrates the initiative's limited success, since despite the national regulation allowing the rental of private boats, "in Spain there have only been 18 applications for it, and two of them in the Balearic Islands." Furthermore, he explains that Madrid has appealed the Balearic Government's decree, arguing that the central government cannot prohibit the rental of private boats and, even, "may consider it an overreach of authority and unconstitutional," as Mercant explained to ARA Baleares. However, the director general defends the regional regulation and points out that the Balearic Islands "have exclusive powers, recognized in the Statute of Autonomy, over transportation and coastal areas of the archipelago, which are not connected to the outside world," and therefore "we must be able to regulate how we want to operate." Thus, he believes that the Spanish government treats the government "like a minor."

The president ofBalearic Islands Maritime Business Association José María Jiménez, from APEAM (Association of Port Workers of the Balearic Islands), believes that "the Spanish government makes decisions solely from a Madrid perspective and is unaware of the situation in the Balearic Islands." In this regard, Jiménez focuses on the problem of overtourism plaguing the islands. "There's no room for any more charter flights. We don't want anyone from outside coming here to work the season," he warns. However, he doesn't rule out the possibility that the national regulations could be applied in other autonomous communities where the tourist season is shorter than in the Balearic Islands, such as Galicia.

Those affected by the political battle

The government's counteroffensive has had collateral damage, as the Executive, in addition to prohibiting the tourist rental of private boats, has incorporated other requirements for carrying out this economic activity, affecting a portion of the nautical sector. Marina Seguí, manager of the new Association of SMEs in Nautical Activities of the Balearic Islands (APANIB)—which represents some of the small and medium-sized enterprises in the professional nautical charter sector—believes that the national regulations were "the government's excuse" to issue this decree. "We are not worried about nautical Airbnb. There have only been 18 applications in Spain."

The new regulations stipulate that rental boats—registered under list six, the list for lucrative commercial activities—must have a mooring to operate. "Shopkeepers can't sell without having a premises," Mercant argues. Meanwhile, the president ofAPANIBÁlvaro Aguirre criticizes the lack of moorings, arguing that this measure "expels people who have been working in the sector for thirty years from the market overnight." In fact, as reported by ARA Baleares, there are 7,511 people on the waiting list in the Balearic Islands for a public mooring in state and regional ports under direct management, more than double the 3,286 moorings directly managed by the Government and Port Authority. For his part, the president of APEAM agrees with the Government's regulation. "If you don't have a mooring, where do the waste products go? In whatever cove is convenient," he says. However, Aguirre believes that "a car doesn't need a parking space to be driven." In this regard, he points out that ships undergo annual dry dockings for maintenance work. "And if an engine breaks down, there's the Maritime Rescue service," he reminds us.

Individual spaces

Furthermore, the regulations also require companies to charter the entire vessel and prohibit the sale of individual berths or tickets to charter companies. In this regard, Mercant refers to a national regulation that prohibits selling tickets to these types of vessels. "In our decree, we only reiterate that prohibition," he explains. He also points out that the Spanish government only permits this type of sale for vessels dedicated to excursions—those registered on the second list, the passenger ship list, and also those used for commercial maritime transport activities. Therefore, Aguirre believes this requirement benefits vessels on the second list (passenger transport vessels), which are allowed to carry out this activity. "Is it better to cram 200 passengers into a natural park?" Along the same lines, he asks, "Why can't two families who meet at a hotel charter a boat together?" He also asserts that charging for the entire boat for a single person prevents low-income clients from renting one. Jiménez, for his part, also expressed his disagreement with the rule. "If a group of friends comes and each one pays their share, I rent a boat by the number of berths. Why can't this be done if it's the traditional charter?" he argued.

All of this has sparked tensions in the nautical sector. APANIB even warns that 7 out of 10 small and medium-sized nautical charter companies could close in the Balearic Islands due to the new regulations. For this reason, the organization has filed several legal challenges against these regulations. According to APANIB, the National Commission for Markets and Competition The CNMC (National Markets and Competition Commission) issued a preliminary request questioning the Decree "to detect a disproportionate prohibition on selling berths, the suitability of the regulation, a possible infringement of state powers (Merchant Marine), and the unjustified restriction of competition that favors certain operators." Furthermore, the Spanish government has also filed an appeal against this part of the regulation, according to Mercant.

The political battle is hindering the implementation of stable measures that would allow companies in the nautical sector to carry out their activities without uncertainty and normally. The administrations are gaining the upper hand in their ongoing struggle, while companies remain uncertain about which regulation prevails.