Palma Cracks Down on Short-Term Rentals, Party Boats, and Hostels

City authorities plan to sharply restrict short-term rentals, ban party boats, and convert hostels — with retroactive effects and tangible consequences for landlords and tourism.

City aims to reclaim housing — and does not mince words

On Tuesday morning, Mayor Jaime Martínez presented a package that will change almost everything related to short-term tourism in Palma. No soft words, hardly any velvet gloves: the city administration plans to stop all forms of vacation rental in the city. Yes, that includes individual rooms and single-family homes that have been offered via platforms.

For orientation: the administration talks of 639 currently legally registered vacation apartments — these will remain for now, but no new licenses will be allowed. More: the rules are to apply retroactively, and with a three-month deadline, so that last-minute loopholes are not opened.

Party boats at Paseo Marítimo? Soon history.

What has annoyed many residents for years is also on the chopping block: party boats should no longer anchor from the coming season. In cooperation with the Autoritat Portuària de Balears (APB) Palma wants to ban the boat parties at Paseo Marítimo. Remember the loud bass waves and crowds streaming late into the night? Exactly that is meant.

Additionally, the package envisions no new youth hostels. Existing hostels should gradually be converted into hotels or regular apartments. The goal: less large-scale intake of young party-goers, more housing for long-term tenants.

Why all this?

The stated goal is simple: reclaim housing for locals. The city administration hopes that by shrinking the short-term supply it will ease the pressure on rents and relieve neighborhoods. Will it go as smoothly as on paper? Many things are open: votes in the city council, legal reviews, possible lawsuits from landlords.

Mixed mood in the city

At the Plaça near the Ayuntamiento, one saw smiling and worried faces. Residents' associations cheer: finally quality of life will be addressed. Tourism businesspeople warn of losses and jobs, some landlords feel overwhelmed. Martínez tried to convey: Palma should remain an attractive destination — but for the people who live here, he stressed.

Practically for owners: anyone currently operating vacation rentals should seek legal advice and consider whether a conversion to long-term rental or sale is appropriate. For tenants and families, there is hope for more available homes — but it may take time for the market to actually ease.

Whether the measures will actually be implemented as planned will be decided at the next city council meeting. Until then it remains exciting — and quite loud in the neighborhood WhatsApp groups.