Spain Cracks Down On Airbnb, Asks To Remove Over 65,000 Listings Amid Housing Crisis: 'No More Excuses. Enough With Protecting Those...'

Spain’s Consumer Rights Ministry has instructed Airbnb Inc. ABNB to remove over 65,000 listings from its platform. The government cites these listings as contributing to the country’s ongoing housing crisis due to violations of existing regulations.

What Happened: A majority of the Airbnb listings targeted for removal either do not possess a license number or fail to clarify if the property owner is an individual or a corporation. This decision was announced by the Consumer Rights Ministry on Monday, reported Reuters.

Pablo Bustinduy, Consumer Rights Minister, is determined to address the “lack of control” and “illegality” in the holiday rental industry. He declared, “No more excuses. Enough with protecting those who make a business out of the right to housing in our country.”

Airbnb has expressed its intention to challenge the decision, arguing that the ministry has no jurisdiction over short-term rentals and has not provided a list of non-compliant accommodations based on evidence. An Airbnb spokesperson stated that some of the listings under scrutiny are non-touristic seasonal ones.

The crackdown is part of a larger effort to regulate tourism rentals through platforms like Airbnb and Booking.com BKNG. These platforms are often criticized for encouraging excessive tourism, reducing the availability of housing and making rentals unaffordable for many locals.

Why It Matters: This development comes at a time when Airbnb has been expanding its platform. Earlier this month, the company announced a major platform expansion, introducing Airbnb Services and Airbnb Experiences and a redesigned app that integrates bookings for homes, services and activities in a single interface. The updates aim to expand Airbnb’s business beyond lodging.

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Furthermore, Cathie Wood-led Ark Invest recently made a significant purchase of Airbnb stocks reflecting Ark’s confidence in the growth trajectory of the company. Notably, Airbnb’s first-quarter revenue increased 6% year-over-year to $2.27 billion, beating analyst estimates of $2.26 billion, indicating a strong financial performance despite the ongoing pandemic.

The Spanish government’s decision could potentially impact Airbnb’s expansion plans and financial performance considering that the country is a significant tourism destination in the world. According to Caixa Bank research, the country saw an inflow of 94 million foreign tourists in 2024.

According to Benzinga Edge Stock Rankings, Airbnb has a growth score of 80.87% and a momentum score of 48.27%. Click here to see how it compares to other leading tech companies.

On Monday, Airbnb stock fell 1.01% to close at $136.60. Over the past one month, the stock surged 22.39%.