The new Minister of Tourism of Mallorca: a chance for a reset or a delay of the inevitable?

Ceremony of appointing Guillem Guinard as Minister of Tourism of Mallorca  (source: Fundació Turisme Responsable de Mallorca linkedin page)

The appointment of Guillem Guinard as Minister of Tourism of the Balearic Islands was not merely a personnel decision but a signal of a possible revision of the region’s tourism policy. Against the backdrop of growing tension around tourist rentals, a shortage of housing, and local residents’ fatigue with mass tourism, the new minister has stepped into a position where compromises are becoming harder to reach than reforms.

Yes! Mallorca Property, one of the island’s leading real estate agencies, is watching the promises and actions of the new minister with cautious optimism.

Tourist rentals as a symptom of a systemic problem

The situation with tourist rentals in Mallorca in 2025 clearly showed that the market has ceased to be self regulating. Palma, which ranked second in demand for tourist accommodation, became a vivid example of the imbalance between supply and demand. On average, a single listing attracted fifty five interested tenants, according to data from the Idealista portal. A fifteen percent increase in competition against the backdrop of a limited housing stock has only intensified social tension. Today, finding suitable rental housing in Mallorca requires not only market knowledge but also a certain amount of luck.

It is important to note that the current imbalance did not emerge spontaneously. The island’s previous government decided to suspend the licensing of new properties for tourist rentals in an attempt to curb tourism pressure and stabilize the housing market. However, this measure, which was not accompanied by sufficient oversight or alternative mechanisms, led to a freeze in legal supply while high demand remained. This, in turn, contributed to the growth of the illegal segment. And although the restrictions were later partially eased, this did not resolve the problem.

Balancing interests: a formula with many unknowns

Guillem Guinard has publicly emphasized that tourism remains the economic engine of Mallorca, and this is difficult to dispute. At the same time, this very dependence makes any reform politically sensitive. Restrictions on tourist rentals threaten to affect the incomes of thousands of families. Leaving everything as it is is also not an option, as this could further deepen social discontent and undermine the island’s long term sustainability.

The declared course toward dialogue and consensus appears reasonable, but it also carries the risk of delaying decisions. The issue of allocating tourist accommodation capacity, which the minister has promised to address in the coming months, is largely a direct consequence of the previous policy of freezing licenses. Today it requires not so much discussion as clear and predictable rules of the game.

Licenses and oversight: a test of governance

One of Guinard’s key promises has been to simplify and relaunch the procedure for issuing licenses for tourist accommodation. In essence, this is an attempt to correct the consequences of decisions made by the previous government while maintaining control over the volume of tourist rentals. The success of this initiative will depend on the authorities’ ability to simultaneously expand the legal market and strengthen oversight.

The fight against illegal rentals in this context becomes not a secondary task but a defining one. As long as illegal properties remain more economically attractive than legal ones, any reform risks remaining purely declarative. For the new minister, this is the first serious test of the sector’s governability.

Comment from Yes! Mallorca Property

Elena Mekhtyala, real estate expert at Yes! Mallorca Property

The appointment of Guillem Guinard comes at a moment when the island still has a chance to adjust its course. The question today is not whether Mallorca needs tourism, since it has already become part of its economic DNA. The key question lies elsewhere: will the new leadership be able to turn tourism from a source of constant conflict into a sustainable and socially acceptable development tool.

I believe that bans do not work here. It is time for Mallorca to start managing tourism with the interests of all parties in mind. Mallorca has already paid a high price for the illusion of simple solutions. By suspending the licensing of new tourist rental properties, the previous government tried to extinguish social discontent through an administrative ban. The result was predictable. The legal market shrank, demand did not disappear, and illegal rentals received new incentives to grow. As a result, Palma has become one of the most overheated tourist rental markets in the country today. I spoke about the impact this would have on the market earlier as well, when making a forecast for the state of the Mallorca real estate market in 2026.

Where has this led? The housing shortage is worsening, prices are rising, control is being lost, and dissatisfaction is growing. This is not a failure of the concept of tourism development but a failure of governance.

Against this backdrop, the course outlined by the new Minister of Tourism, Guillem Guinard, looks not like a compromise but like a necessity. He proposes abandoning the logic of freezing and returning to regulation: resuming licensing, simplifying the rules, and at the same time strengthening the fight against the illegal segment. This looks like an attempt to restore the state’s leverage. Mallorca needs clear rules that are the same for all participants in the real estate market, as well as oversight and accountability.

If Guinard truly manages to move from words to action, the island will have a chance to emerge from the chronic conflict between residents and the tourism industry. And today, there are simply no other realistic options.

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