In the neighbourhoods most pressured by tourism, it will be possible to open new Local Lodging Establishments (“AL”). However, according to the rules that the capital’s municipal council wants to see approved, new registrations will be dependent on a special authorisation. “AL” licences will be valid for five years, after which they will have to be renewed. Currently, seven historical areas face restrictions.
Tax receipts from Local Lodging (“AL”) grew from €69,000,000 to €123,000,000 between 2015 and 2017, as revealed by the Secretary of State for Tourism, Ana Mendes Godinho. “AL” license registrations also increased almost twofold from 28,000 to over 50,000 over the same period.
Between May and July of this year, there were 8650 new official Local Lodging registrations (“AL”), representing twice the amount over the same period of 2016. The phenomenon is explained not by a large-scale entry of offerings into the holiday letting market, but rather by the legalisation of existing units.
As of 01 July, online letting platforms such as AirBnB and Booking can only list properties duly licensed in the National Tourist Registry. The obligation to enroll is part of a simplex initiative known as “Simpler Tourist Licenses”. With the new regulation, the Government intends to avoid unfair competition between property owners and tour operators as well as strengthen compliance.