Spanish hotel chain Meliá is taking proactive measures to secure affordable housing for seasonal workers facing rental challenges in the country’s tourism hotspots, according to Reuters.
Meliá CEO Gabriel Escarrer announced the acquisition of a former hostel on the Balearic island of Menorca and revealed plans for further property purchases in Ibiza, Mallorca, the Canary Islands, and the Spanish mainland.
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Escarrer said: “Due to the boom in short-term rentals for tourists, finding an apartment for the season has become an Odyssey.
“What we have done is make sure we have housing for our workforce.”
Stemming from a drop in new home construction since the property crash in 2012, Spain’s housing crisis is intensified by the surge of short-term tourist rentals on platforms such as Airbnb.
Last year, the country welcomed a record 94 million tourists, with nearly one-third opting for holiday homes over hotels, as per official statistics.
Meliá’s strategy to buy housing comes after the company resorted to lodging some employees in hotel rooms over the past two years to prevent staff turnover, Escarrer explained.
However, Ramón Estalella, general director of Spain’s hotel association CEHAT, noted that providing housing is not a viable solution for many hoteliers.
Estalella said: “Not everyone can afford (to provide) housing and a salary for their staff. It is not a widespread solution.”
The disparity between increases in wages and rent is a growing concern, with hotel workers’ salaries rising by 3% last year while rents in Spain saw an average increase of 11.5%, according to property listings website Idealista.
In the Balearic Islands, the situation has forced residents to live in caravans due to soaring rents.
Trade Union Confederation of Comisiones Obreras (CCOO) hotel sector leader Jose Maria Martinez said: “Wages are not rising like hotel margins and housing is a problem in tourist areas.”
Amid these challenges, the CCOO in the Canary Islands has called for a two-day hotel strike over Easter next month to demand higher wages.
Local governments in prime tourist areas are starting to limit holiday rental permits, and cities such as Barcelona and the Balearics have raised tourist taxes following protests from residents about the impacts of mass tourism.
Escarrer also suggested that restricting tourists from staying in holiday homes in city centres could aid in preserving Spain’s cultural identity, highlighting the example of La Boqueria market in Barcelona, which is now overwhelmed by tourist traffic.
In April 2023, Meliá’s brand INNSiDE by Meliá debuted in Barcelona with a new hotel, following the Apolo hotel renovation.
