Ibiza Faces Villa Shortage Among Local Housing Crisis & Increasing Tourism

Ibiza tourism is about to get much more lucrative as the President of the Balearics warned there will be a villa shortage this summer.

All of the Balearic Islands will be affected including Mallorca and Menorca following a 2022 bill that caps the expansion and growth of tourist accommodations following a region-wide local housing shortage.

Furthermore, tourists should expect to pay a visitor’s tax when they arrive. The tourist tax is a theme among popular tourist destinations, ranging between €1 and €4 per night depending on the luxury status of the accommodation.

While tourism is extremely important to Ibiza, accounting for 84% of its GDP, a tourist ratio of around 20 tourists for every single resident has created challenges with housing locals and maintaining the island.

In 2022, just under three million tourists visited Ibiza, more than the population of Chicago in 2022.

Rent costs are one of the biggest issues, doubling between 2011 and 2019 to around 82% of income spent on housing.

Furthermore, between 2014 and 2018, the proportion of the island used for food production dropped from 46.6% to just 11%, meaning only 2% of the food consumed in Ibiza was produced on the island.

Featured image credit Martina Amaro from Pexels, second image credit Kevin Kobal from Pexels

Written by
Danielle Levy

Danielle Levy is an MBA with a concentration in Corporate Social Responsibility. Danielle has several years of experience in the sustainability education world and has held various positions in human resources and intern management. Danielle is passionate about the ties between sustainability and social impact.

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