The short-term rental in Slovenia is under threat?

Is short-term rental in Slovenia under threat? Many tourist cities grapple with housing problems, exacerbated by the leasing of apartments to tourists, and Slovenia is no exception. Changes are anticipated in the near future.

While the positive impacts of tourism are undeniable, less favorable aspects should not be overlooked. In numerous European capitals, this issue is currently fueled by a shortage of housing for local residents. Seeking higher earnings, property owners often prefer renting to tourists, leading to an unstable situation in some cities. In response, certain city authorities have already taken action. For instance, last year, the authorities in Florence imposed a ban on new short-term private rental housing in the historical center to ensure ample and affordable housing for residents, students, and full-time workers.

Is a similar prospect looming in Slovenia?

The problem is most acute in the capital, where apartment prices and rents have sharply risen in recent years. Anthropologist, ethnologist, and urban environment researcher Dr. Rajko Muršić has long highlighted the issue: “People without enough funds are being evicted from the center of Ljubljana. Apartments are renovated, prices raised, and they are rented out to tourists, causing the center to deteriorate.”

However, not everyone shares this view. Petra Stuszek, director of the Ljubljana Institute of Tourism, believes that tourism brings more advantages than disadvantages. In an interview, she cited a survey indicating that over 60% of center residents recognize the positive qualities and advantages of tourism.

As the situation in Slovenia becomes increasingly challenging, the Ministry of Economy, Tourism, and Sports, under Matjaz Han’s leadership, is collaborating with the Ministry of Solidarity Future to address the issue. A new law on short-term rentals is in preparation to establish rules and restrictions. The regulation aims to strictly limit property rentals through platforms like Booking and Airbnb to a maximum of 60 days a year, a significant reduction from the current five months.

The Ministry explains that a national system for registering short-term rental providers will be created, with conditions for registration. This aligns with European efforts to control and uniformly identify opportunities provided through marketing platforms. The Ministry defended its decision, stating that short-term stays have evolved into commercial enterprises rather than just additional household income.

According to ministry data, in 2021, short-term accommodation facilities accounted for 37.6% of all overnight stays. The Ministry of Education and Culture emphasized that housing’s primary purpose is permanent residence, and massive short-term rentals disrupt the market.

What will this look like in practice?

The proposed changes under the new Hospitality Act are yet to be made public, but it’s expected that the regulation may be introduced as early as next year. Possibilities include restrictions on renting out owner-occupied apartments, limiting rentals to primary residences, and a significant reduction in the simplified co-payment.

There’s also a suggestion to identify areas where real estate rentals will not be permitted. For instance, the city of Ljubljana may mandate accommodation only in the city center, excluding areas like Šiška or outside Bežigrad. While this may reduce competition with hotels, it could also decrease revenue from other local activities.

An exception is proposed for companies with commercial property status, allowing them to rent out real estate. This would require companies to change the use of apartments to commercial premises.

What about small towns and locations remote from Ljubljana?

If the amendments pass, municipalities, particularly those seeking more self-governing power, would regulate short-term rentals. Local communities would issue rental consents, without which advertising would be impossible. Obtaining consent involves a lengthy process, including neighbor approvals, changing the apartment’s purpose to commercial premises, opening a legal entity, and registering for tourist rentals.

Concerns arise about the impact on smaller tourist destinations that primarily offer private apartments. A ban on platforms like Airbnb could reduce tourist numbers significantly, affecting local economies and limiting domestic tourism opportunities.

Under the new law, most tourists might opt for hotels or apartment complexes, potentially altering the tourist experience and destinations chosen. This shift could have serious consequences for regions heavily dependent on tourism.

Source: https://www.zurnal24.si/popotnik/je-to-konec-bookinga-in-airbnbja-pri-nas-417429