European governments are clamping down on illegal holiday rentals with a wave of new regulations that are likely to affect prices and availability.

 

The proliferation of unlicensed lettings on travel platforms such as Airbnb and Booking has pushed European countries to take action. An investigation by Ulysses has found that not only might these new measures put a dent in tourists’ wallets, they also haven’t been entirely successful.

 

In Europe, online travel platforms are not always required to monitor illegal listings, and this has allowed homeowners to transform their properties into unauthorised and untaxed businesses. In the past year, holiday destinations including Spain, Greece, Portugal and Italy have introduced taxes and laws (often dubbed “Airbnb taxes”) to prevent this from happening.

 

“The government has struggled to tax these new booking apps,” says Enrico Bistrussu, co-owner of a bed and breakfast in Cagliari, Italy. He explains the Italian government has decided it will no longer receive taxes from individual hosts. Instead, the country’s new “Airbnb tax” leaves it up to booking platform to collect letting taxes.

 

Most Italian tourism destinations have also introduced registers for licensed tourist accommodation. However, Ulysses has discovered some businesses might still be operating illegally. Of the 150 B&Bs available in Cagliari on Booking.com, 27 did not appear on the local register. Raffaele Bistrussu, the town’s councillor, said he’s looking to introduce a city tax to be paid by tourists to make up for the financial losses caused by illegal lettings. “Lots of cities across Europe are introducing these taxes to maintain their tourism revenue,” he says.

 

On top of becoming less affordable, accommodation in Europe could also be scarcer as a result of new regulations. Spain recently introduced heavier fines for unauthorised hosts, causing the withdrawal of thousands of Airbnb listings.