5th Convention - 2019

The President of AVAT, José Antonio Llano, welcomed the attendees, detailed the programme to be held at the Congress and highlighted the need for professionalisation of the sector. On the other hand, he highlighted the existence of an annual congress in Ibiza, which serves as a meeting point for professionals in the sector, owners and representatives of the administration. Finally, he thanked the workshop participants, the sponsors and the institutions (mainly the Consell d'Eivissa and the Santa Eulària Town Hall) for their maximum collaboration in holding the event.

The area director of Banc Sabadell, the main sponsor of the event, Óscar Prohens, was proud to inaugurate this congress which closed the 2019 tourism season. A season that began with uncertainty and ended with the bankruptcy of the tour operator Thomas Cook. Prohens praised the congress programme and pointed out that the holiday home sector is increasingly aware of its economic importance and also of its role in improving environmental management.

The Mayoress of Santa Eulària, Carmen Ferrer, welcomed the attendees to the Centre Cultural de Jesús. She thanked AVAT for maintaining this quality work both in their sector and in the congress, which has now reached 5 editions. Ferrer considered it very important to adapt to the new times, to differentiate oneself and to boost the competitiveness of the sector. He highlighted the spirit of the fight against piracy that both the administration and the sector are defending. Finally, he valued the Congress programme very positively as it addressed the problems of the sector and hoped that conclusions would be drawn from the congress and that new objectives would be sought.

Finally, the President of the Consell d'Eivissa, Vicent Marí, acknowledged the existence of an important intrusiveness on the island that the Administration cannot ignore. He linked the serious housing problems on the island in part to the existing illegal tourist offer. Marí stated that the legislation must be enforced and pointed out that inspections were intensified during the summer. He also informed that all the Declaraciones Responsables (DRIAT) presented (863 with 6,300 vacancies) would be registered immediately so that they would have the definitive registration number without having to wait any longer. Finally, the President of the Consell advocated an intense collaboration between the institutions and the private sector.


*Presentation 1 - Local and regional regulations

The first presentation was moderated by Juan Franch Fluxà, professor at the UIB and scientific coordinator of the Congress. The aim of this presentation was to shed light on the diverse regulations existing at all administrative levels.

Jesús Cuartero, from the Department of Consumer Affairs of the Autonomous Community of the Balearic Islands, pointed out that the General Consumer Law states that it must be clear who is making the product available, its characteristics and its price (including taxes and fees). The EU Package Travel Directive also applies where applicable. Cuartero stressed that special care should be taken when contracting over the internet, as in Europe there is a lot of security but outside "it is very cold". The European Court of Justice has even spoken of the "average consumer" when carrying out different procedures. Cuartero recalled the code of good practice for the car rental sector, which has worked well in the islands. On the subject of tourist accommodation, it should be the tourist administration or even the sector itself that should draw up a code of self-regulation. Finally, he pointed out that consumer law does not cover contracts if one of the parties is not an entrepreneur.

The President of Fevitur, Tolo Gomila, recalled that his association has called for a national registry of tourist accommodation, with three legs to deal with: taxation, national security and consumer protection.) In his opinion, the Balearic administration is breaking the law in the DRIAT when it uses it as a prior licence. Gomila recalled that the General Tourism Law of the Balearic Islands was born in a conjunctural period with many tourists on loan and that the legislation does not allow the activity to be supervised. The President of Fevitur affirmed that we are already on the way to standardising regulations (tax model 179, police forms, modification of the Law on Urban Leases and the Law on Horizontal Property, etc.). As an example, the hotel sector is also creating its own housing marketing platforms. In his opinion, the percentage of tourist housing is so low that it does not affect the issue of housing and rentals. Gomila demanded that the state administration should now create the national housing register and that the National Institute of Statistics should provide real metrics on the supply of tourist housing. Gomila advocated seducing owners who have homes to put them on the market by protecting them. Finally, he argued that town councils are the ones who know their territories best and should participate in the regulations. For Gomila, the Catalan and Valencian regulations are good examples, as is Madrid, leaving open the question of which was the worst.

Terra Urbe's urban planning lawyer, Rafa Encarnación, said that tourist housing is hyper-regulated (tourism, environment, urban planning, etc.). In his opinion, zoning cannot cover everything. Conditions, mixed uses of zones, etc. have been made. Zoning, in the end, is a funnel rule that leads to judicialisation of the issue.
Competition authorities consider that zoning reduces the market. Encarnacion pointed out that planning modifications are difficult and cumbersome because of what the administrations have done is to standardise the use of dwellings to the tertiary hotel use. In his opinion, the administration should try to favour regulations that are less harmful to the administrator, detailing that in Valencia a temporary solution has been reached, allowing multi-family dwellings as long as there are internal municipal reports. Registration numbers are not issued, not even with administrative silence. It is true that in Valencia there is compatibility of use, although it is difficult. Following the CNMC, any decision must be motivated and justified. Restrictions can be based on cultural issues, etc. Total prohibition leads to judicialisation, according to the rapporteur. Finally, he highlighted the serious problem of coordination between administration and platforms.

Finally, the Conseller Gestió del Territori i Lluita contra l'Intrusisme del Consell d'Eivissa, Mariano Juan, defended that the town councils have to decide, it is the most logical thing to do. The compatibility of uses must be decided by the town councils, although it is clear that it increases the legislation. Juan, who was previously in municipal politics, pointed out that urban planning changes are extremely difficult. In Ibiza there is a debate on whether tourist housing should be allowed on rural land or not, not only in multi-family houses. Juan stressed that the administration must equip itself with instruments of control, not only personal but also legislative. The very lack of control of the sector has the opposite effect on society, creating groups that advocate a total ban. As an example, he cited the leisure sector, which has been criminalised by some for the bad practices of a few. For the representative of the Consell, the issue of noise is important along with incivility. The Consell should draw up a Plan of Intervention for Tourist Areas and modify the Island Territorial Plan (PTI), as well as support the town councils in the reform of their urban planning regulations, either by making special plans or complete reforms.

 
*Presentation 2 - Environmental Sustainability in Tourist Accommodation

This presentation was coordinated by Sandra Benbeniste, from the Ibiza Conservation Foundation, who explained the Plastic Free Ibiza initiative.

Juan Calvo, from the Water Alliance and the Sustainability Observatory, pointed out the need for efficient housing. He recalled that water is a scarce and finite resource. We come from a very different scenario, but now we have low water reserves, housing on rural land, greater risk of fires and dry and salinised wells. The data tells us that the highest consumption is in housing, whether urban or rural. According to Calvo, the priority measures for sustainability would be the reduction of groundwater consumption in homes on rural land, the priority use of desalinated water for urban supply, domestic savings, improving losses in the supply network, improving sanitation and purification, greater reuse of water, etc.

Calvo explained the water saving ordinance of the Sant Josep Town Hall:

• telematic reading meters, flow reducers, Mediterranean gardens, rainwater collection systems.
• Reuse of grey water, not going all to septic tanks, reuse of swimming pool water, closed cooling systems.

Óscar Caro, from Ibiza Sostenible, commented on the objectives of the 2030 Agenda, the Sustainable Development Goals (SDGs). Caro highlighted that tourist homes generated 4.4 billion euros in Spain, a large expenditure of stays. He then detailed which of the 17 SDGs are applicable in a guide of good practices for housing. The challenge is to minimise and offset the impact. He considered it very important to draw up a decalogue to welcome tourists, welcome packs with messages for tenants (sustainable bags ....), insist on the messages of cleaning without littering, contracting green energy, saving energy, saving water, buying km 0, etc. It is important to provide such information to guests, support environmental initiatives, promote social sustainability and the integration of universal accessibility. Finally, he encouraged the use of renewable energies and the introduction of permaculture.

Joan Tur, CEO of Solsulet, called for greater use of solar energy in holiday homes, as only 2% of electricity production comes from renewable sources. Tur explained the different types of off-grid or stand-alone installations, grid-connected installations to feed energy into the grid and grid-connected installations (with or without storage). In urban areas, panels are usually placed on integrated roofs, while in rustic areas they are on the ground. Tur pointed out a dual use in tourist holiday homes (depending on partial temporary rental or only temporary rental use). On smaller plots the tourist rental is a bonus for the owner, so the consumption rate per person is lower. In the case of rental only, these are homes that are usually on rustic land, which have a lot of roof area but are used on the ground, the client is a high-income profile, which results in very high consumption. Finally, Tur explained the different dimensions of the installations as well as the payback and amortisation periods.

Álvaro Martínez, from Terravita, explained what needs to be done to ensure that a building uses little energy. He looked at where energy is lost: through transmission or ventilation. He analysed the passivhaus concept: good insulation, windows with good thermal use, thermal insulation-thermal bridges, airtightness and ventilation. These concepts are not only for new buildings, but can also be used in renovation. Martinez explained that the tourism sector is starting to take initiatives, the user demands it and prefers to live in a sustainable home.

Finally, Tom Hoddell, from Mi Casa Tu Casa Ibiza, stated that we all have an obligation to the environment, including tourists, but who should take the lead are the owners, who must take measures both in the home and in the information they provide to tenants. He set out a number of practical, common sense tips for villas:

• Water saving: regular checking of irrigation systems for leaks, flow restrictors, double flushing mechanism for toilets, clear message to tenants, less lawn, grey and brown water purification, rainwater harvesting.
• Energy reduction: LED bulbs, outdoor lights with timer or motion sensor, reduce air-conditioning costs, hot water through solar panels, A+++ appliances, energy efficient air-conditioning, heat pump, thermal break windows.
• Eliminate plastic: osmosis filters, reusable shopping bags, refillable toiletries and large containers, better without coffee capsules, clear communication with tenants.
• Recycling: explain the use of blue, green and yellow containers, inform the cleaning team, reusable glass bottles, etc.

*Presentation 3 - The present and future of tourism distribution

This presentation was coordinated by Roberto San Esteban, from the AVAT Board of Directors.

Nicolas Galantini, from AJL Consulting, spoke of a consolidation of tourism distribution as large operators are making several acquisitions (Expedia is buying Homeaway, Airbnb has acquired Hotel Tonight and Luxury Retreats, Google is also entering, Marriott is entering with Homes & Villas). 75% of bookings have been made through distribution platforms in 2018. Galantini presented a study assessing results and prices both island-wide and in the island capital. Accepting instant bookings (50% in Ibiza) means a clear increase in turnover. Revenues, average daily price and average occupancy are higher if the property is in direct distribution. For Galantini, Homeaway is strong in Ibiza although other operators are growing. According to him, distributing on various platforms means more revenue for property managers.
Finally, he asked, what trends does the future hold?

• Loyalty programmes
• Technologies that will help distribution.

Alexis Barceló, CEO of Abal Consulting, presented a series of tourism data. 1,400 million tourists in 2018, 82.6 million foreign tourists in Spain, with problems in the issuing markets of Great Britain, Germany and Italy. Demand has stagnated this year while supply has grown by 1633% between 2012 and 2017, a clear danger of stagnation. For Barceló, new platforms have shaken the foundations of traditional businesses. We are in the 4th industrial revolution, the technological one. All this evolution means that we have to provide a better hospitality service ("loving strangers") as it is increasingly difficult to choose. How do I sell? What do I sell? For how much? You have to understand consumer behaviour, learn from neuroscience the inputs the brain uses to make decisions. Value must be generated, the numbers come later. Get to know the guests (nationality, habits,...), create more inspiring images, improve amenities ('eco' amenities), etc. It must be analysed that the economic performance of a property is based on the photography, the website, the tariff structure, the graphic communication, etc. Owners must be made aware of the existence of Smart Data. For Barceló, each property has to be marketed differently, its cost structure has to be different. Finally, he highlighted the obligation to monitor the online reputation of the business.

*Sponsored Lecture - Holiday Home Insurance and Security

Mariano Esteban, from Mariano Esteban Agencia de Seguros, explained various forms of insurance: home insurance, civil liability, multi-risk insurance for companies, etc. He explained that for intermediaries, it is compulsory to take out civil liability insurance for their activity and to include secondary activities such as maintenance, concierge, etc. On various insurance issues, he answered questions from the audience. As far as security is concerned, insurance companies can cover theft, but they usually set limits between 1000 and 1500 euros, sometimes exclude mobiles, etc. Finally, he recommended making it clear that the property is not responsible for theft against the tenant and that the traveller should take out travel insurance directly or indirectly.
 

*Presentation 4 - How to increase the profitability of my holiday home?

This presentation was coordinated by Álex Reyners, from the AVAT Board of Directors.

Chema Herrero, CEO of BedsRevenue, explained that revenue management is a new business DNA/culture based on optimising not only revenue but also margin. You have to look for profitability and sustainability of the product. This is a professional field, you have to constantly update your knowledge, knowing your customers is not a fad. Herrero pointed out the importance of the globalisation of the tourism sector: the air component of the island, increasing offers at all levels of products, internet as a base of operations, billboard effect more accentuated in the holiday home product, the challenge of professionalisation of the managers....
Owners cannot afford not to have an online booking formula. The more professional the sector is, the more demanding the whole chain will be. For him, the client has changed, they are looking for new experiences, they have more information and are more demanding, so it is very important to listen to the opinion of the clients. Herrero presented a revenue management strategy:

• PRODUCT is fundamental
• Customer segmentation, they are all different (last minute, young people, countries, ....).
• MOMENT OF PURCHASE
• PRICE. Depending on how much is put and the possibilities of customers
• CHANNEL. Channels have costs.

The right allies for owners are technology and professional outsourcing. The trend of the future is towards one-to-one revenue, knowing as much as possible about the customers, creating customer profiles, matching the product to the profile and also adjusting prices.

Raúl Castillo, Director of Bookiply in the Balearic Islands, gave a presentation of Bookiply, part of the Holidu group. This company is a channel manager that manages 5,000 properties, 1,200 in the Balearic Islands. There are more and more travellers to more places. It has changed the way of travelling and tourism. The Internet has changed the way we buy tourism. As far as Ibiza is concerned, it is subject to a very strong seasonality, 70% of the activity in 4 months. Guests book 25% in January and February. There are two very clear trends: early bookings and last minute bookings. For Castillo, ensure that the property is visible and allows early booking, rates and availability should be set for at least the next 12 months and one year in advance. Last-minute discounts should also be set up for summer slots. According to Bookiply's director, advertising should be demand-driven. 19% of the nights were not bookable (prices not configured, limitation of nights ....), 60% arrive during the week and 40% at weekends. For Castillo, check in and check out should be made more flexible. 35% of bookings are made for stays of less than 6 days, minimum stays should be made more flexible. Set prices based on demand, it is recommended to have between 6 and 10 rates.
VISIBILITY. Being advertised on several portals increases profitability (Airbnb 48%, Booking 29%, Homeaway 12%).
SEARCH FILTERS. Wifi, swimming pool, family friendly, air conditioning, barbecue, TV, parking, pets, garden, dishwasher. Families are a very attractive segment, as they generate an increase in demand in mid and low season. It is advisable to adapt the property for children (safety measures, accessories, cots, etc.).
IMMEDIATE BOOKING. 40% want to book instantly, which represents a 20% increase in bookings.
Castillo advised to increase the flexibility of the advertisement (minimum stays, adapt check-in and check-out days), increase visibility, adapt rates to demand, attract more tourists by using filters, instant booking, etc.).

For Domènec Biosca, President of Educatur, profitability is based on 5 concepts:

• Good opinion of the sector
• Branding of the destination
• Business mentality, prestige
• Innovation
• Job creation

A network of experiences must be created to generate emotion, networking and teamwork. For Biosca, the brain is an emotional inheritance from the ancestors. The emotional map is made of plasticine, innovation must be encouraged. Happiness is being able to choose and know how to resolve conflicts. It is essential to create links, networks, to encourage associations and the pride of belonging to a community. Biosca pointed out that the crisis means arriving late to changes and now clients want the maximum information to close their trips. Luxury is to surprise, you have to give the customer what they want, "if you are one more, you will be one less". The most important thing is people, not technology. It is managed by example, with generosity. Biosca defended that things must be done with passion, making life difficult, preparing to have the solutions. We have to look for the culture of the leader, we are all tourism. Success depends on going from being an owner, to being an entrepreneur and a leader.

Día 8 de octubre de 2019 (día 2)

*Presentation 5 - Policy proposals for the current legislature

Vicent Roig, Conseller of Presidency and Environmental Management of the Consell d'Eivissa, moderated this classic table of the Congress where Ibizan politicians present their proposals for the sector. Roig said it was a luxury to be able to participate and thanked PIMEEF, AVAT, the sponsors and the institutions for organising such a high quality congress. For him, it is clear that new forms of tourism have been imposed, which is an opportunity to differentiate, to have a tourism with a different type of consumption. Tourist housing tourism is seen as an opportunity by one part of the population, but also as a risk by another (noise, higher housing prices). There is a serious problem of intrusion on the island, which is why it is very important to fight against those who compete with us in an absolutely unfair way. For the councillor, it is important to revitalise the countryside. He also recalled that there are obsolete planning regulations in three municipalities, which affects the ability to regulate. The Consell is going to unblock those 6,000 places that were without a definitive registration number. Finally, Roig wanted to reflect on the activities permitted in dwellings.

Miguel Tur Contreras, Councillor for Tourism of the Sant Antoni de Portmany Town Council, explained the tourism situation in Sant Antoni. He believes that the Strategic Plan that is being carried out will be important for hotel renovation. In his opinion, it is clear that the expenses incurred by a holiday home tourist are higher, although in some cases it generates problems with neighbours. Residential housing has moved out of the village, so limits will have to be set in these intensively residential urban areas. In addition, as there is a lot of hotel accommodation in the village, it is necessary to think of the neighbours. The town council wants to change the type of tourist who comes here, eliminate binge tourism and improve the quality of hotels and housing. Tur Contreras said that it is necessary to find a balance between urban planning and tourism. Finally, he remarked that the priorities for this legislature will be to change the binge tourism and to improve the tourist infrastructures of the municipality.

Vicent X. Roselló, Councillor for Tourism of the Sant Josep de sa Talaia Town Council, explained that extra-hotel accommodation has always been a reality, first without regulation and in a more modest way, but now it is a very powerful and highly regulated sector. For him, we have to provide a wide range of quality accommodation without undermining the rights of residents. Sant Josep in the zoning prioritised the respect between residents and tourists, which is why it only allowed the commercialisation of isolated single-family dwellings. Roselló said that irregular activities in multi-family dwellings should be pursued. In his opinion, an activity that is well regulated does not have to harm anyone. He acknowledged that town planning regulations are obsolete and that it is essential to adapt town planning to current regulations, in addition to the Administration being able to control all activities. Between all the administrations, he pointed out, we must be able to adequately regulate supply, and business must be made compatible with access to residential housing. Finally, Roselló defended the concepts of coexistence and regulation.

Miguel Tur Rubio, First Deputy Mayor of Santa Eulària des Riu Town Council, defended the fact that all institutions must agree on the kind of tourism they want. Santa Eulària wants to clearly differentiate between residential and tourist uses. Urban centres must have a life of their own, so they must not depend on tourism. Tourist areas are very clearly delimited in their municipality. Tur Rubio clearly stated that he did not want tourists in the multi-family houses and he wanted them in the rustic single-family houses. If one is in favour of tourist housing, as a complementary form of tourism to the hotel industry, they must provide security and safety, as well as offering tourist services to the users. He defended the fact that the administrations must provide tourist areas with services. Tur Contreras concluded by arguing that the activity should be clear and regulated and that the Administration should prosecute those who do not provide a good service and who carry out a pirate activity.

Aitor Morrás, Second Deputy Mayor and Councillor for Housing of Eivissa Town Council, explained that in Ibiza Town there is more urban and tourist pressure on multi-family buildings. He advocated reflecting on whether the right to enjoy the benefits of private property means a better quality of life for residents. For him, there is a problem of coexistence, civil servants do not want to come to the island because of the high cost of housing, there is a problem of access to housing. It is a phenomenon that occurs for various reasons, including the clear increase in the price of rents. Morrás recalled that article 31 of the Hotel and Catering Agreement, which was repealed, included the provision of housing for seasonal workers. The platforms have worsened the problem and many homes are being occupied not by residents but by seasonal workers or tourists. All this leads to the depopulation of urban centres, as in the case of La Marina, which is mainly dedicated to tourist rentals. This also has a negative impact on commerce. Morrás acknowledged that it is quite legitimate to make a profit from properties, but it is necessary to analyse society as a whole. People are being expelled from the island because of the high rents. Morrás concluded by affirming that there is a housing stock which is being used for other activities than residential, and that it would not be necessary to build more.


*Presentation 6 - Tourist housing: regulation vs. liberalisation

Mª Victoria Torre Sustaeta, Doctor of Law specialising in Competition Law, moderated this presentation and began by pointing out that competition law is the guest of honour at all parties since, as the defender of the market, it must ensure its free functioning. In Spain, the body authorised to intervene is the Comisión Nacional de los Mercados y la Competencia (CNMC). Given that there are legal goods to be protected, the CNMC requires justification for the regulations. The CNMC is aware that there is not only market freedom and that there are other goods that must be guaranteed. Finally, Torre Sustaeta highlighted the strength of the Spanish Tax Administration compared to other administrations, including the competition administration.

Pedro Hinojo, from the CNMC's Sub-Directorate of Studies and Reports, said that the market must be complemented by good regulation. He reviewed the history of the tourism sector:

• Tourist 0.0 - pre-digital - intermediary - accommodation.
• Tourist 1.0 - web - accommodation
• Tourist 2.0 - platform - accommodation (3R: rating, review, recommendation), less asymmetric information, more information on accommodation, empowerment of the consumer, socio-cultural technological factors.
• Tourist 3.0 - platform or not - accommodation (prosumer, homesharing, homeswapping).

The regulation of tourist rental must be different from that of traditional tourism (minor environmental externalities), the price of land is affected in the same way, the price of housing will be more expensive in the short and long term. Hinojo made a brief reference to his report on Formentera's regulations. The latter defines housing for tourist use, speaks of suitable areas (the CNMC does not agree with the territorial contingency), which for the CNMC violates the freedom of enterprise and is not supported by case law. Sensitivity to urban planning. The CNMC is totally against the segmentation by maximum number of bedplaces and their distribution by type of accommodation, as this is not a transferable right, and is economically and environmentally inefficient. The requirement of the transfer of housing in its entirety (prohibition of renting rooms, including habitual residence) is not admissible for the CNMC, prohibiting the rental of rooms lacks justification and is counterproductive, less hassle for the neighbours. The Formentera regulation does not take advantage, according to the CNMC, of the margin granted by the Balearic law, contingent on short periods of one month. Restricting the rental of permanent housing is the worst thing that can be done. There is also a limit on the number of licences per operator, the DRIATs have authorisations, and there are many requirements.
A diagnosis must be made, paying special attention to externalities. For Hinojo, regulation should be dynamic and adapted to time and space, taxes can be used to correct externalities. General economic policy measures should be considered.

Mateo Silos, Principal Economist at Ofwat, argued that in many cases regulations do not correspond to the basis of why regulation is needed. That is, incumbent operators have supported or lobbied for regulation to exist. Stiegler defined that the basic resource of the state is coercive power and that agents are rational and maximise their utility. Regulation is a response to the demands of interest groups that seek to maximise their profits. The interest groups that will control regulation will be those that are best organised, those that have the most to gain, and small groups with strong preferences. Silos recalled that Stigler and Peltzman explain why regulation often favours producers over consumers. Silos defined the costs of regulatory capture: less competition, efficiency and productivity, wasted resources, maintenance of privileges and greater inequality. It leads to clientelism and distrust of capitalism. For him, the tourist housing regulations are not justified from the point of view of the general interest, they are designed to block the entry of a maverick, protecting the incumbents (hotel sector). In the Balearic Islands, the ability of competitors to enter has been blocked and the legislation has favoured the profits of hoteliers. For Silos, there are solutions to regulatory capture: greater transparency, accountability, improving channels for consumer action, facilitating institutional stability, .....

Carlos Pérez-Lanzac, President of the Andalusian Tourist Housing Association (AVVA), pointed out that the hotel lobby is very structured, rules are passed that are truly savage. The market can intervene when there are problems between supply and demand. According to him, the Andalusian regulation is not bad, although it has some shortcomings. It demonises a sector (holiday homes) that has not had a structure until recently. The tourism sector is transversal, associationism is fundamental and key at this time. For Pérez-Lanzac, we are in the home stretch. A minimum national standard is needed, a distinction must be made between individual and professional operators, and local councils must be able to decide what model of city and tourism they want. It is hard to understand that even with simple rules such as the Andalusian one, the phenomenon of illegality exists. For the President of AVVA, model 179 provides fiscal transparency but only affects tourist housing.
 

*Presentation 7 - Platforms, marketing and intermediation in housing accommodation

Tolo Deyá, Dean of the Faculty of Tourism at the University of the Balearic Islands (UIB), moderated this presentation.

Francisco Rodríguez, project consultant and founder of collaborative startups, stressed that we are at a time of reform of digital platforms, he described their advantages and problems:

• Advantages: triple impact, scale, global impact.
• Problems: negative externalities, lack of data, conflicts with the sector.

4Ds: decentralisation, distribution, de-seasonalisation, de-standardisation.
Large international hotel companies are already launching their tourist accommodation product (Marriott, Be Mate). It is important to use information to make decisions (artificial intelligence and the internet of things are beginning to be used). For Rodríguez, it is necessary to ask what the demand wants, information can be obtained through social networks, big data, seeking to understand what they want, what barriers exist. The ideal is to promote a tourism industry that is compatible with progress. How do we create new destinations, he asked. Finally, he considered that revenue management is very interesting for owners, the use of technology based on data offers solutions.

Roland Buquet, Partner Success Director EMEA Homeaway, pointed out that Homeaway belongs to the Expedia group and manages 2 million properties. Travellers are generally groups or families, so the ideal is to match the property to these two possibilities. Searching for the perfect property is a job. 86% make the decision between several people, it is important to eliminate friction, get references. Reducing owner effort is a goal. 4 times more bookings if booking board is used. Boost feedback. Facilitate travellers' decisions. According to Buquet, Homeaway works on the owner side, has its own revenue manager tool. Use data to make the right decisions (comparison with neighbouring properties). There are ad management models. Each owner offers something different and you have to study the external inputs that affect demand (problems in competing countries, Brexit, weather). The holiday rental client is of all types, although traditionally it is the family with children and also groups of friends. Finally, Buquet stated that a distinction must be made between individual owners and professional property managers. The latter have understood how important revenue is to be competitive. Individual homeowners have not yet reached that point, although there is an interest in getting training in this area.

 
*Presentation 8 - Taxation of Holiday Letting

As every year, the presentation on taxation closed the Congress. Mª Ángeles Marí, Secretary General of PIMEEF, introduced Vicente Arbona, Head of Inspection of the Tax Agency (AEAT) in Eivissa.
For Arbona, the taxation of holiday rentals revolves around a fundamental concept, whether or not hotel industry services (cleaning, change of linen, food, etc.) are provided during the stay. If there are services, there is VAT (10%, as in a hotel), if there are no services, there is no VAT.
As far as personal income tax is concerned, tax must be paid on the profit from the income. The treatment is different if services are provided or not. If there are no services, the owner is a lessor and expenses (IBI, depreciation, repairs) can be deducted as long as there is a lease. If ancillary services are provided, the landlord is no longer a landlord and becomes an entrepreneur. Entrepreneurs do not have to apportion expenses when deducting expenses. In the case of transferring ownership to a company that does the marketing, this transfer of use is a lease which is taxed at 21%. The company will make a withholding tax of 19%, similar to a rental lease. The owner will have to declare the rents collected and the deductible expenses will be prorated.
Practical cases were presented and cases of owners who are legal entities were studied.
Form 179 is an informative declaration on the transfer of use of dwellings for tourist purposes. This form must be submitted by the intermediary between the transferors and the transferees of the use of dwellings for tourist purposes. A tourist dwelling is understood to be the temporary transfer of the use of all or part of a dwelling, regardless of the channel through which it is marketed or promoted, and carried out free of charge or for a fee. This form must include information on the owner, the transferor, the accommodation (dates and amount), etc. Copies of customer documentation must be kept.