Brussels: Europe and the Arabs
New EU rules aim to bring more transparency to short-term rentals in the EU and promote more sustainable tourism. According to what was stated in a statement by the European Parliament in Brussels on Thursday, which also stated:
Short-term rentals: statistics and key issues
The short-term rental market has expanded rapidly in recent years. Although a variety of accommodation solutions, such as private properties rented as guest accommodation, can have a positive impact on tourism, their rapid growth has caused problems.
Local communities have been negatively affected by the unavailability of housing in popular tourist destinations, high rental prices and the general impact on livability in some areas.
A total of 547 million nights were booked in the EU in 2022 across the four large online platforms (Airbnb, Booking, Expedia Group and TripAdvisor), meaning that more than 1.5 million guests per night stayed in short-term accommodation.
The largest number of guests in 2022 was recorded in Paris (13.5 million guests), followed by Barcelona and Lisbon with more than 8.5 million guests each, and Rome with more than eight million guests.
In response to the growing number of short-term rentals, many cities and regions have introduced rules to limit access to short-term rental services.
Challenges related to short-term rentals
The increase in short-term accommodation rentals has created a number of challenges:
Need for more transparency: The lack of transparency in short-term rental operations makes it difficult for authorities to effectively monitor and regulate these services
Regulatory challenges: Public authorities face challenges in ensuring short-term rentals comply with local regulations, taxes and safety standards due to insufficient information
Urban development concerns: Some local authorities are finding it difficult to cope with the rapid growth in short-term rentals which may lead to the shift of residential areas and place an additional burden on public services such as waste collection
EU response to rising short-term rentals
In November 2022, the European Commission presented a proposal to provide greater transparency in the field of short-term rentals and support public authorities to promote sustainable tourism.
Parliament and the Council reached agreement on the proposal in November 2023. Measures include:
Registration of Hosts: The deal sets out a simple online registration process for short-term rental properties in EU countries where this is required. After completing this process, hosts will receive a registration number that enables them to rent out their property. This would make it easier for hosts to be identified and their details verified by authorities.
Greater security for users: Online platforms will be required to verify the accuracy of ownership details, and they will also be expected to conduct random checks. Authorities will be able to stop registrations, remove non-compliant listings, or impose fines on platforms if necessary.
Data exchange: In order to obtain data from platforms about host activity, EU countries will create a single digital entry point to help local authorities understand rental activities and improve tourism. However, for small and micro platforms that average up to 4,250 listings, a simpler data sharing system will be put in place.
“Previously, rental platforms did not share data, making it difficult to enforce city rules,” said Kim van Sparentack (Greens/EFA, Netherlands), the MEP responsible for guiding the legislative file through Parliament. Cities have more control.”
The statement concluded by saying that before it enters into force, the interim agreement must be approved by the Council and Parliament. After that, EU countries will have 24 months to implement it.
Parliament's Internal Market Committee is scheduled to vote on the interim agreement in January 2024.