Housing Crisis Not Solely Due to Tourism, Argues Industry Leader
At the XVII Annual Tourism Conference held by the Order of Economists, Miguel Rodrigues of the 'Feels Like Home' property management firm presented a detailed analysis of the pressures on Portugal's housing market. In his address, he stated that while tourism is a significant factor, it is not the sole cause of the current affordability crisis. The announcement was made to an audience of economists, government officials, and industry stakeholders gathered to discuss the 'elasticity' of the tourism sector.
Rodrigues outlined a series of specific regulations and market dynamics that contribute to the complex situation. He argued against what he termed 'prohibitive' measures, such as outright bans on short-term rentals, or 'Alojamento Local' (AL). Instead, he called for an 'adequate and adjusted' regulatory framework. He suggested that municipal governments should have more autonomy to create zoning laws that define specific areas for residential, commercial, and tourist use, thereby ensuring a healthy balance within neighborhoods. This, he argued, would be more effective than a one-size-fits-all national ban.
A key part of his proposal involves a clear and streamlined licensing process for AL properties. Rodrigues advocated for a system where licenses are tied to specific quality and safety standards, and where the number of licenses available in a given district is capped based on the local housing supply and population density. He proposed that a portion of the tourist tax revenue collected from these rentals should be directly reinvested into affordable housing projects within the same municipality, creating a circular funding model to mitigate the market impact.
The projected revenue from such a tax, according to Rodrigues's presentation, could be substantial. Citing data from his own company and market analysis, he estimated that in Lisbon alone, a well-structured tourist tax linked to AL could generate upwards of €50 million annually for a municipal housing fund. This would provide a consistent source of financing for the construction of new public housing and the renovation of vacant buildings for residential use, directly addressing the supply shortage.
Compliance for property owners under this proposed system would involve mandatory registration on a national platform, regular inspections, and adherence to strict rules regarding noise, waste management, and community conduct. Rodrigues emphasized that this would professionalize the sector and protect residents from the negative externalities sometimes associated with short-term rentals. He believes that responsible hosts would welcome such a framework as it would lend legitimacy to their operations.
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The presentation also highlighted the need for better enforcement of existing regulations. Rodrigues pointed out that many properties currently operate as illegal short-term rentals without the proper licenses or tax registration. He called for increased cooperation between online booking platforms like Airbnb and Booking.com and the Portuguese Tax and Customs Authority. This would involve data-sharing agreements to ensure that all rental income is declared and that only legally registered properties can be listed, a measure that has been successfully implemented in other European cities.
The impact on neighborhoods and communities was a central theme of the discussion. Rodrigues presented case studies of gentrification in Lisbon's historic Alfama and Mouraria districts, where the proliferation of short-term rentals has displaced long-term residents. To counteract this, he proposed incentives for landlords who convert AL properties back into long-term rental contracts, such as significant reductions in property taxes (IMI) and capital gains taxes upon sale.
The market supply and demand dynamics were also analyzed. Rodrigues argued that the housing crisis is exacerbated by a paradigm shift in the labor market, with a growing number of digital nomads and remote workers choosing to live in Portugal. This new demographic competes for the same housing stock as locals, further driving up prices. He suggested that any comprehensive housing strategy must also include the development of co-living and other housing models specifically designed for this transient population, thereby easing pressure on the traditional rental market.
Future regulatory developments, Rodrigues concluded, must be data-driven and avoid populist, reactive measures. He called for the creation of a national housing observatory to continuously monitor market trends, rental prices, and the impact of tourism, providing policymakers with the empirical evidence needed to make informed decisions. This, he argued, would lead to a more stable and predictable market for residents, investors, and tourists alike.
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