Hotel owners in Spain complain that the practice of renting out property to friends, colleagues and customers over the internet is creating unfair competition for them. The government have responded by voting to update the Ley de Arrendamientos Urbanos (LAU) and hope to get this passed by the Senate. The aim is to pass regulation of rentals to the regional authorities.
Companies that sold holiday homes on the basis that the owners could recover the cost by renting the property out are concerned that the change will drive people into illegal renting. They point out that home rentals provides 700 million euros per year in taxes to the Spanish hacienda. That is a lot of money for the country to lose.