Spanish hotel chain Melia buys housing for its workers as rents surge
Melia, Spain's biggest hotel chain, has bought a former hostel on the Balearic island of Menorca and is looking to make further acquisitions in Ibiza and Mallorca as well as in the Canary islands and on the Spanish mainland to house its workforce during the summer high season, Escarrer said in an interview.
"Due to the boom in short-term rentals for tourists, finding an apartment for the season has become an Odyssey," Escarrer said, adding that paying employees well is no longer enough to retain talent.
"What we have done is make sure we have housing for our workforce."
A housing crisis in Spain caused by a sharp fall in new home construction since the 2012 property crash is being exacerbated by a short-term letting boom to tourists on platforms such as Airbnb (ABNB.O), opens new tab.
Spain received a record 94 million tourists last year, with three out of 10 visitors choosing to stay in holiday homes rather than hotels, according to official data.
Buying housing is a radical solution for Melia, which in the past two years has been forced to accommodate some staff in hotel rooms to prevent them from quitting, Escarrer said.
But for many hotel owners, giving workers a home is not an option, Ramón Estalella, general director of Spain's hotels group CEHAT.
"Not everyone can afford (to provide) housing and a salary for their staff. It is not a widespread solution," he said.
Unions warn that hotel workers' salaries rose 3% last year while rents in Spain increased by an average of 11.5% in 2024, according to Idealista, a property listings website. In hot spots such as the Balearics residents have been forced to live in caravans due to rising rents.
"Wages are not rising like hotel margins and housing is a problem in tourist areas," said Jose Maria Martinez, a union leader for the hotel sector at CCOO.
In the Canary Islands, CCOO called for a two-day strike in hotels over the Easter week to demand better wages.
Local authorities in top tourist destinations have begun to restrict permits for holiday rentals while Barcelona and the Balearics have increased tourist taxes in response to residents' protests about mass tourism.
Escarrer said banning tourists from staying in holiday homes in city centres would also help preserve Spain's cultural identity, pointing out how La Boqueria market in downtown Barcelona has become overrun by tourists.
"Fifteen years ago La Boquería was ideal for interacting with the people of Barcelona and today the market receives tourists who only go there to take photos," he said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
26 minutes ago
- Reuters
India to maintain Russian oil imports despite Trump threats, government sources say
NEW DELHI, Aug 2 (Reuters) - India will keep purchasing oil from Russia despite U.S. President Donald Trump's threats of penalties, two Indian government sources told Reuters on Saturday, not wishing to be identified due to the sensitivity of the matter. On top of a new 25% tariff on India's exports to the U.S., Trump indicated in a Truth Social post last month that India would face additional penalties for purchases of Russian arms and oil. On Friday, Trump told reporters he had heard that India would no longer be buying oil from Russia. But the sources said there would be no immediate changes. "These are long-term oil contracts," one of the sources said. "It is not so simple to just stop buying overnight." Justifying India's oil purchases from Russia, a second source said India's imports of Russian grades had helped avoid a global surge in oil prices, which have remained subdued despite Western curbs on the Russian oil sector. Unlike Iranian and Venezuelan oil, Russian crude is not subject to direct sanctions, and India is buying it below the current price cap fixed by the European Union, the source said. The New York Times also quoted two unnamed senior Indian officials on Saturday as saying there had been no change in Indian government policy. Indian government authorities did not respond to Reuters' request for official comment on its oil purchasing intentions. However, during a regular press briefing on Friday, foreign ministry spokesperson Randhir Jaiswal said India has a "steady and time-tested partnership" with Russia. "On our energy sourcing requirements ... we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances," he said. The White House did not immediately respond to requests for comment. Trump, who has made ending Russia's war in Ukraine a priority of his administration since returning to office this year, has expressed growing impatience with Russian President Vladimir Putin in recent weeks. He has threatened 100% tariffs on U.S. imports from countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the leading supplier to India, the world's third-largest oil importer and consumer, accounting for about 35% of its overall supplies. India imported about 1.75 million barrels per day of Russian oil from January to June this year, up 1% from a year ago, according to data provided to Reuters by sources. But while the Indian government may not be deterred by Trump's threats, sources told Reuters this week that Indian state refiners stopped buying Russian oil after July discounts narrowed to their lowest since 2022 - when sanctions were first imposed on Moscow - due to lower Russian exports and steady demand. Indian Oil Corp ( opens new tab, Hindustan Petroleum Corp ( opens new tab, Bharat Petroleum Corp ( opens new tab and Mangalore Refinery Petrochemical Ltd ( opens new tab have not sought Russian crude in the past week or so, four sources told Reuters. Nayara Energy - a refinery majority-owned by Russian entities, including oil major Rosneft ( opens new tab, and major buyer of Russian oil - was recently sanctioned by the EU. Nayara's chief executive resigned following the sanctions, and three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions, Reuters reported last week.
Metro
3 hours ago
- Metro
Friends left outraged after Airbnb host rejects booking because they are Welsh
To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Short notice, too many guests or pets not allowed – these are the reasons you might expect when an Airbnb host tells you to find somewhere else to stay. This wasn't the case for two gobsmacked music fans, who had their innocent request to stay in Manchester rejected because they were Welsh. Jemma Louise Gough, 38, and friend Jamie Lee Watkins, 37, had requested an Airbnb room in the city so they could see Australian DJ Sonny Fodera at the Co-op Live Arena. The pair, from Cwmbran in South Wales, were trying to book a double room for just one night in November. They told the Airbnb host they were coming 'from Wales to see the gig' when everything went awry. Jemma and Jamie then received an email telling them their booking request had been rejected. When they asked why, the prospective host replied: 'Because you're from WALES.' Mum-of-two Jemma said: 'We had an email that our booking had been declined and we were getting a refund. 'We wrote 'Hi, can I ask why it's been declined?', with a kiss, very politely.' The school support officer said her 'mouth hit the floor' when she read message telling her the booking was cancelled because of where she was from. She added: 'Nothing else other than 'because you're from Wales'. 'It was nothing about us going to the concert or whatever, it was just discrimination of the country. 'We're amazing people, the Welsh are lush. I don't know what me and my friend – or the whole of Wales – did that's so horrible. It's absolutely horrendous.' The pair shot back asking for more explanation, and told the host it was 'discrimination under the Equality Act 2010'. According to Jemma, that message the host read that message but did not reply. Registered nurse Jamie, who was the one trying to make the booking, said: 'I just thought, 'oh my gosh, how can you say no just because I'm from Wales?'. 'It was really blunt, just one line: because you are from, in capitals, Wales. What difference does that make? I was just a bit shocked really that people still say things like that.' More Trending Jemma took to social media to express her outrage at the cancellation. She said she 'had to tell the world about this' adding they had reported the host. An Airbnb spokesperson said: 'Discrimination, including on the basis of nationality, has no place on Airbnb. As soon as this report was brought to our attention, we reached out to the guest to provide our support and suspended the host while we investigate this matter.' The holiday rental company do have an Open Doors initiative, which means the company provide support to guests who feel they have been discriminated against. Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: Popular Italian restaurant chain on brink of administration to close six sites MORE: 'My son died riding on an e-scooter – we need to end these needless tragedies' MORE: 'Bonnie and Clyde' couple jailed after fantasising and planning rape of children
Reuters
3 hours ago
- Reuters
Brazil's Azul secures $650 million investment commitment
SAO PAULO, Aug 2 (Reuters) - Brazilian airline Azul said it signed an agreement with certain stakeholders for a $650 million investment in a future capitalization deal, according to a late Friday securities filing. The airline's so-called "backstop commitment agreement" must be approved by the U.S. court overseeing its bankruptcy proceedings, the filing said. In May, Azul filed for Chapter 11 bankruptcy protection in the United States after months of trying to restructure mostly pandemic-era debt.
