Black market rentals are hurting jobs in Alicante

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THE best summer in the last 10 years of Costa Blanca’s tourism history won’t bring the financial benefit the area would expect due to the alleged large amount of unregulated flats and houses being rented out, said a report in Spanish Daily Informacion. This problem is worsened by the ‘all-inclusive’ packages that tourists book beforehand, that then limit their spending in local businesses.

According to the survey done by EXCELTUR, although unregulated rentals are widespread, in cities like Alicante it has surpassed the total number of regulated tourist businesses, reaching the alarming amount of 55 per cent of total bookings.

The tourists that this illegal business brings in are not even new; according to the report, they appear to be mostly returning tourists that would otherwise have paid for legal accommodation.

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The report goes on to say that the negative consequences for jobs in the area are already a reality: up to five times more vacancies would have been created if legal businesses had taken the earnings. And to top it off, the state is losing thousands of euros in unpaid tax.

3 COMMENTS

  1. The presence of tourists in unregistered accommodation, or in accommodation where the owner is not paying tax, has no effect whatever on the number of people engaged in looking after those tourists during their stay. This is a totally fatuous argument you put forward.

  2. I agree and think that unregulated villas and apartments being rented out still contributes, I personally think that money being spent on anything is an advantage to the economy as the government will eventually get money out of it, in fact it is the fact there is so much tax and so high running costs that actually prevents people from spending money and so less money for the taxman. The Spanish tax man puts so much effort into trying to stop the tiny man with his small amount of black money that the economy suffers, I feel an economy ‘such as Spains’ needs black money to keep the cogs turning, the tax man needs to spend these efforts getting the bigger fish… but then the bigger fish are generally politicians or involved with one and we all know how useless an adventure dealing with these fish here is Spain is as they all seem to scratch each others backs.

  3. Perhaps it would help if ‘all inclusive’ hotels closed their bars earlier and tourists might go out at night a bit more. Also had some nights with no entertainment then tourists would venture out. Or, they could pay a tax. But in Benidorm the local council allowed too many bars to open anyway … it looks awful.

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