BUSINESS NEWS


EC plans tighter regulations for short-term rentals


The European Commission plans legal restrictions on short-term rentals to address a growing housing crisis in Europe. EC president Ursula von der


Leyen outlined plans to regulate tourism rentals in a ‘state of the union’ address to the European Parliament this month, noting housing had become “a social crisis [which] tears at Europe’s social fabric”. The shortage of affordable


housing in tourism destinations such as Palma and Barcelona has been at the core of recent anti- tourism protests. European data agency Eurostat


Ursula von der Leyen


Ectaa warns proposed PTD changes ‘risk confusion and fragmentation’


reported overnight short-term rental stays were up 7.8% year on year in the three months to June, to 23% of all available accommodation. Restrictions on such


accommodation will come alongside an EU Affordable Housing Plan and a revision of state aid rules to support housing initiatives. European hospitality association Hotrec welcomed the proposals.


The European Travel Agents’ and Tour Operators’ Association (Ectaa) has warned revised proposals by the European Parliament for reform of the Package Travel Directive (PTD) threaten fragmentation and confusion. Ectaa welcomed the


ditching of some proposals following a vote by MEPs but said: “Key concerns remain.” A proposal to limit prepayments


to 25% of a package price has gone. But the Parliament replaced it with a proposal to allow member states to set their own prepayment rules. Ectaa warned this “risks undermining a level playing


field for operators and creating unnecessary compliance burdens for cross-border businesses”. It also criticised a proposal to


extend the definition of a package to separate but linked bookings made within 24 hours, warning this risked “blurring the line between packages and standalone services” and creating “confusion for


consumers and traders”. PTD reform will now go to


‘trilogue’ negotiations between the Parliament, European Council and European Commission. Ectaa called on the negotiators “to get it right [and] remove sources of confusion and fragmentation”.


Dutch air tax increase condemned Ian Taylor


Industry bodies condemned a rise in air passenger tax announced by the Dutch government last week but further increases in taxes on flying appear inevitable, including in the UK. The Netherlands’ tax is due to


rise by 2.9% from January, increasing from €29.40 to €30.25 (£26.40) per passenger, with the government proposing a higher long-haul rate of €50-€70 from 2027. Airlines slammed the move,


suggesting it would make flying unaffordable for many travellers, although the rise on most flights will be €0.85 (75p). The Dutch government said some of the increase would go towards aviation sustainability. Airlines for Europe (A4E) managing


director Ourania Georgoutsakou called the rise “unjustified”, saying:


travelweekly.co.uk


“It simply makes the Netherlands less attractive for business and tourism.” KLM chief executive Marjan


Rintel cited research suggesting 74% of Dutch adults would consider flying from Belgium or Germany if fares rose and claimed: “Even more Dutch travellers are choosing to drive across the border to fly. The Netherlands is pricing itself out of the market.” Olivier Jankovec, director general


of European airports association ACI Europe, argued: “Taxing aviation diverts resources away from the massive investments required to achieve net zero.” However, the German


government has dropped a pledge it made in June to reverse a 20% rise in Germany’s air tax introduced in May last year, admitting: “There is no fiscal room for this.” The hike took the tax on German air passengers to €15.53 (£13.50) on short-haul


flights, €38.72 on medium-haul, and €70.83 on long-haul. The French government doubled


its ‘solidarity tax on air tickets’ in March to €7.40 on economy short-haul flights, €15 on medium- haul and €40 on long-haul, with business-class rates of €30, €80 and €120 respectively. Air France chief Ben Smith denounced the rises as “irresponsible” and Ryanair said it


would cut flights in response. The UK government appears


likely to follow suit in the Autumn Budget on November 26 given at least a £20 billion hole in Treasury finances. Increases in the short-haul economy rate of Air Passenger Duty from £13 to £15, and of long-haul rates to £90 or £94 – with premium rates more than double these – are already scheduled from April 2026.


25 SEPTEMBER 2025 47


The Dutch government is accused of ‘making the Netherlands less attractive for business and tourism’


Shutterstock/PixelBiss, Olha Khomenko, miss.cabul


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