The Canarian Association of Holiday Rental Owners (ASCAV) has strongly criticised the Canarian Government’s white paper on holiday lets, which they claim will “exterminate the sector” on the islands.
Following the presentation of the proposed law last month (for more details see page 50). ASCAV expressed “our deepest and most direct rejection of the law”. The association claimed, “The aim of the Canarian Government is now clear – to ban new holiday rentals and get rid of existing ones that are functioning legally.”
ASCAV has also announced it will take the Canarian Tourism Department to court for allegedly ignoring more than 500 proposals made by members during the consultation period of the law.
The new law will cap holiday rentals to 10% in most areas, and all new applications must be authorised by local councils. As hardly any councils have plans drawn up, ASCAV claim that new holiday rentals will be effectively banned and point out that the conditions will be much stricter.
Following objections by local councils, the government has extended the deadline for the presentation of public objections to the law until the 9th of May. It has also indicated that it plans to use the law of urgent measures to rush the legislation through. There are fears that this could occur before the end of June.
While the hotel sector has largely welcomed the law, the property sector has been horrified by the proposed legislation. Lanzarote estate agent Alexandra Betancort Bonet, of Lanzarote Agents, says that holiday lets are not the reason behind the housing crisis, and described the law as a “death sentence for holiday rentals.”
“The government has failed us for many years,” she said, “It hasn’t done its homework, it hasn’t planned ahead, it has built just 200 social houses in the last 20 years, and now we all have to pay.” Alexandra points out that the holiday rental sector provides up to €18 million a year of IGIC (VAT) in the Canaries.
Kevin Roper of Roper Properties is also fully behind ASCAV’s campaign. “I believe the new law is unconstitutional”, he says. “Everyone in the trade agrees on the need for regulation, but not this way”.
Kevin believes that the rise of Airbnb is behind recent problems, and suggests banning the platform on the islands: “They do it with Uber; why not with Airbnb?” He proposes that heavy fines on illegal rentals would act as a powerful deterrent, and asks “Do the Canarian Government really want to return to the submerged economy and tax avoidance of the past?”
“The amount of applications for VV licenses are proof that people want to do this legally. All we’ve ever asked the Canarian Government is for the tools to do that,” he adds.
ASCAV have also been supported by the College of Property Managers in Tenerife, who accused the government of “not regulating, but banning”, with the new law. The College implied that the hotel sector was behind the law’s strict provisions, and said “If the hotel sector is really so worried about housing problems why don’t they support a tourist tax, or even invest in accommodation for their own staff?”
To contact ASCAV, go to www.ascav.es or their Facebook page.
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