Short-term rentals boost rural tourism in Spain

Travelers seeking authentic experiences are increasingly leaving behind bustling urban centers and overcrowded coastal zones, opting instead for the tranquility and charm of Spain’s small rural towns.

These lesser-known areas offer a slower pace of life, deeper contact with local culture, and a more sustainable tourism experience, while also making a significant contribution to the economic revitalization of communities that had been facing population decline.

Rapid growth in demand

According to new research by Analistas Financieros Internacionales (Afi), in 2023, 13 million visitors chose rural accommodations in Spain, generating an economic impact of €5.56 billion. Of this, €3.2 billion went directly to local businesses—restaurants, shops, and markets.
The increased demand also led to a 4% rise in employment in hospitality and retail in these areas.

The role of short-term rentals

Much of this growth is due to the rise of short-term rentals. Platforms such as Airbnb have allowed travelers to reach areas outside traditional tourist routes, often in villages with no hotel infrastructure.

In 2023, the average annual income of Spanish Airbnb hosts reached €5,200—an amount that represents a significant boost for many families. At the same time, the flexibility and affordability of these accommodations help extend the tourist season and spread visitor numbers to less saturated areas such as Ribeira Sacra, Alt Empordà, Sierra de Cádiz, and the inland region of Valencia.

Regulatory challenges

However, short-term rentals in rural areas are often subject to regulations designed for cities, which do not reflect the specific circumstances of sparsely populated regions.
Jaime Rodríguez de Santiago, Airbnb’s General Manager for Spain, stresses that current legislation “creates unnecessary difficulties” for rural hosts.

The Afi report recommends exempting small villages with fewer than 1,000 residents from standard urban planning rules, since short-term rentals there account for only 0.6% of the housing stock.

Proposals for sustainable growth

The study suggests:

Simplifying the licensing process through a single submission point, online applications, and criteria adapted to rural contexts.

Giving priority in public funding programs to agritourism projects, with a focus on digitalization, energy upgrades, and promoting local trade.

Providing digital skills training for property owners and small business operators.

Supporting cultural and gastronomic events that enhance the tourism experience.

Economic impact

Afi estimates that adding even a single short-term rental property in a village without a previous listing could attract up to 580,000 additional visitors annually at the national level, generating an economic impact of €135 million.

This growth can support new jobs, increase demand for local products, and help preserve cultural traditions. In some areas, it has already encouraged young people to stay in or return to their hometowns.

A model with potential

Although rural short-term rentals have steadily increased since the pandemic, experts believe there is still significant room for growth. With targeted regulatory changes and support, more villages could benefit.

For travelers, this means the chance to experience the authentic Spain. For local communities, it represents a new source of income and a second chance for revitalization.