New Airbnb Rules Could Impact Most of Maltas Licensed Holiday Homes

November 28 2024 09:30:26 by PCLMedia

New regulations proposed by the Malta Tourism Authority (MTA) could significantly impact the short-term rental market in Malta and Gozo, with three-quarters of licensed holiday homes potentially affected.

Under the proposed rules, landlords renting out apartments as short-term lets would require approval from their condominium neighbors before securing or renewing an MTA license. Currently, landlords only need an MTA license to operate.

The Scale of Malta’s Short-Term Rental Market
As of summer 2023, Malta and Gozo had over 6,000 licensed short-let holiday homes, most of which are apartments. MTA data breaks this down into 4,625 properties in Malta and 1,379 in Gozo. However, the actual number of short-term rentals is likely higher. A 2019 Central Bank study identified nearly 9,000 properties listed on Airbnb alone. More recently, research commissioned by local hoteliers revealed over 10,000 listings on platforms like Airbnb and VRBO, suggesting that nearly half of all holiday rentals operate without an official license.

Malta’s licensed holiday homes collectively provide nearly 25,000 bed spaces. Popular tourist areas such as Sliema, St. Julian’s, and St. Paul’s Bay house almost half of these properties, with Valletta and Mellieħa following suit. In Gozo, Xagħra leads with 190 licensed holiday homes.

Interestingly, only three localities across the Maltese islands — Marsa, Mtarfa, and Santa Luċija — remain untouched by the Airbnb boom.

Impact of Proposed Changes
If enacted, the new rules would disproportionately affect apartment-based rentals, which make up over 80% of Malta’s short-term lets. This could particularly hit areas like Sliema, where holiday apartments are concentrated. Meanwhile, Gozo, with a higher proportion of villas, farmhouses, and townhouses, might face less disruption.

Proponents argue that the proposed regulations aim to address issues like noise, unruly behavior, and overcrowding in tourist hotspots. Critics, however, warn that requiring neighbor approval could stifle the rental market and hurt property owners who rely on this income.

Prime Minister Robert Abela has dismissed the idea of imposing a Barcelona-style ban on short-term rentals, assuring property investors that their interests will be protected. However, the government has yet to provide detailed plans for regulating the sector.

Airbnb Restrictions Across Europe
Malta is not alone in grappling with the impact of short-term rentals. Other European countries have implemented stricter regulations to address housing shortages, overtourism, and community disruptions caused by platforms like Airbnb:

- Barcelona, Spain: The city has introduced a near-total ban on renting out private rooms for short stays and requires full-apartment rentals to obtain strict licensing. Enforcement has been aggressive, with fines for unlicensed properties.
- Amsterdam, Netherlands: Hosts can only rent out their properties for up to 30 nights per year, with additional restrictions in place for properties in central districts. The city also mandates registration and licensing.
- Berlin, Germany: Short-term rentals are heavily regulated, with owners required to obtain a permit. Entire home rentals are limited to certain percentages of available living space to prioritize housing for residents.
- Paris, France: Property owners can rent out their homes for no more than 120 nights per year unless they obtain specific authorization, and secondary residences face tighter controls.
- Lisbon, Portugal: Local councils have implemented "containment zones" where new short-term rental licenses are restricted to protect residential housing.

These measures aim to strike a balance between supporting tourism and maintaining the quality of life for local residents. Malta’s proposed regulations, if enacted, could follow a similar trajectory, though their specifics and enforcement remain to be seen.

Mixed Reactions to the Proposal
Reactions to the proposed rules have been divided. Real estate agents argue that the measures could dampen property investment and tourism. Others believe the proposals are necessary but insufficient to address issues like the lack of affordable housing and community disruption.

As debates continue, it is clear that Malta’s approach to regulating short-term rentals will be crucial in shaping the future of its tourism industry and urban living.