Spain’s tourism boom strains affordability for residents in major cities

Spain welcomed a record 22 million international visitors in the first quarter of 2026 — an 11 percent increase year-on-year — but the tourism boom is increasingly testing the social contract in major destination cities.

Rental prices in Barcelona have risen by 18 percent over twelve months. The Balearic Islands’ regional government has approved a moratorium on new short-term rental licences. Madrid’s city council is consulting on a tourist tax that would feed directly into a housing fund.

Trade unions have called for a national framework that would allow regions facing acute pressure to introduce sector-specific measures, including caps on cruise ship arrivals and restrictions on holiday let conversions in residential buildings.

The European Commission has indicated it is monitoring the situation but considers it primarily a matter for Member State authorities.