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Also read that they are imposing new taxes on cruise ships. Barcelona is a popular cruise port and they all spend some time as tourists in the city. Always a balancing act between being overwhelmed by tourists while realizing how much they help local business
Cruises are usually worse for a city than hotels economically.
At least with hotels and short term rental, tourists will linger and spend money on the room and dining. That money isn't spent on the community when people cruise in while tourists still use the tourist facilities.
Do this all over the world, just kill airbnb and other such similar sites by taxing them out of existence
Obviously the same 32 million tourists won't come if the same overnight accommodation isn't available and the rest are looking at higher hotel costs due to saturation
It's the right thing to do to serve the local residents housing needs. But the local residents also need the tourist as many work in hospitality / leisure etc
Will be interesting to see what happens
Call me jaded, but I don't think tourism is such a great thing to base your economy on.
It depends.
If you rely only on tourism, you're commuting to a low wage economy. However, some cities have used tourism as the base economy to springboard to high value industries as the tourism amenities end up getting used by high earning locals.
Even if they raise hotel prices 50%, they'll still be cheaper than hotels in other massive cities. If people don't mind paying $300/night in Paris or London, they'll be okay with paying $150-200/night in Barcelona.
that's not how it works. tourism is elastic to only a small extent. the rest is in an equilibrium. barcelona is in constant competition with other spanish cities, portugal, french south coast, italy etc. if barcelona raises hotel prices 50% and nothing else changes, very very many people who were on the fence about their destination and chose barcelona will easily choose the now comparatively cheaper alternatives.
Given that supply is being removed, it is likely that demand will adjust to the new hotel supply.
In markets the typical response to a sudden shortage is an ________ in ______, leading to a reduction in demand, as the demand shifts to alternatives (other destinations, non-consumption) until a new equilibrium is found.
That's right - an increase in pricing reduces demand by pushing people to alternatives, reducing demand.
Cool, but the Barcelona local government isn't increasing prices; they are reducing supply.
That's right, a reduction in supply increases prices.