Reducing tourist rentals in traditional town centers

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A comprehensive and urgent review of tourist rentals in Menorca’s traditional town centers is needed to determine whether they meet the necessary conditions to continue operating. This is the request that GOB has recently sent to the Island Council.

Overcrowding and housing impact

The rise of tourist rentals has skyrocketed over the past decade, directly contributing to two of Menorca’s most pressing issues: tourism overcrowding and the lack of affordable housing for residents.

The expansion of tourist accommodations has added 30,000 new beds to the 54,000 that previously existed. Over the past 10 years, Menorca has increased its legal tourist capacity by 55%.

During peak season, with all legal accommodations full, over 45,000 additional visitors arrive on the island. But where do they stay? The figures confirm an undeniable reality: tourism saturation.

With an estimated 12,000 homes used for tourist rentals—both legal and illegal—the balance has shifted, prioritizing short-term visitors over long-term residents. The result? Skyrocketing rental prices, making it nearly impossible for many locals to find housing.

Prioritizing traditional town centers

This issue is even more severe in Menorca’s traditional town centers, where most permanent residents live. These towns include Maó, Ciutadella, Alaior, Ferreries, Es Mercadal, Es Castell, Sant Lluís, and Es Migjorn Gran.

Recognizing the impact of excessive tourist rentals, the Island Territorial Plan (PTI) has already prohibited new tourist accommodations in these residential areas.

GOB is calling for a thorough review of existing tourist rental permits in these town centers. These areas are designed for residents, with year-round services and infrastructure that support local life beyond the summer season.

In GOB’s view, tourist activity should be scaled down and concentrated in tourist resorts, as outlined in the Balearic Islands’ Tourism Law, which provides tools to regulate and control rental accommodations.

The Legal Obligation to Review Permits

The law requires that all tourist rental permits be reviewed at least every five years. This ensures that properties continue to meet legal requirements and that their locations remain suitable for tourist activity.

The law also mandates several additional measures:

  • Phasing out fuel-based heating systems such as diesel or fuel oil.
  • Implementing water-saving and waste-reduction systems.
  • Displaying a visible official rental identification plaque.
  • Having an insurance policy with a minimum coverage of €300,000.

Menorca must reduce its planned tourist capacity to prevent the negative effects of overcrowding and housing shortages.

Reviewing tourist rental permits in traditional town centers would help ease congestion, improve cohabitation between visitors and residents, and free up homes for year-round use.