Spain is cracking down on overtourism – but it could leave them with a gigantic £25bn shortfall.

In a bid to tackle tourist numbers impacting on local’s way of life, leaders in Spain have laid out a number of regulations – including one on short term rentals.

However, according to a report by Oxford Economics, using data from Eurostat and Airbnb, the rule in place could cost the country €30 billion which is equivalent to over £25 billion.

The findings also noted that it would risk 2% of Spain’s GDP and 400,000 jobs in the country.

Rental platform Airbnb has claimed that Spanish authorities have drawn up their regulations “without taking into account important considerations”, for example rural or urban locations and whether the type of activity is occasional or dedicated.

In a statement it said: “This has resulted in general bans in some cities, broad restrictive regional regulations or excessive bureaucracy that is driving out those who carry this activity on an occasional basis, mainly families, without solving any of the problems,” Majorca Daily Bulletin reports.

The company has also highlighted the benefits that rental activity has on families, rural areas and the promotion it brings for small businesses.

It continued by expressing that the regulations are being used as “the scapegoat for the great housing challenges,” that Spain is facing.

Despite this, there are various destinations in Spain that are facing the challenges of overtourism – including a housing crisis that has seen rent in Spain increase by 80% over the past decade.

Airbnb has acknowledged and is working with governments to aid with the housing crisis and it has a proposed regulatory model based on four principles.

First, it advocates a clear distinction between business activites through tourist rentals dedicated entirely to short-term rentals and occasional accommodation in the homes of families.

The use of a single, free, online registration system which is in sync is also crucial, according to EU rules, along with evidence-based, data-driven, proportionate, non-discriminatory and justified rules. 

The last principle is based on regulations adjusted to fit the requirements of less frequented and less known areas, such as rural, in oppose to the complexitiy of urban areas, which promote the dispersion of trips throughout Spain.