Crisis on Spain holiday island as British tourists warned of major new problem

Ibiza's hire car companies have warned British tourists of soaring charges and shortages this summer after the Spanish island slashed fleet numbers from June. They say the new rental quotas per firm, in some cases cut by nearly a third, won't meet demand, so a hike in prices is inevitable.

They are challenging the Ibiza council's decision, part of an overall strategy to free up the island's roads, and claim it might well help congestion, but will do nothing for the island's tourism image. Legal challenges have already being lodged, including by the National Business Federation of Rental of Vehicles with and without driver (Feneval).

In a statement, Feneval says the limitation will be a direct detriment to companies in the sector, which will suffer a maximum limit of 600 vehicles per company.

Executive president of Feneval, Juan Luis Barahona claims the regulation "breaks the fairness of the market, limits competition and generates clear legal uncertainty", adding: "The public administrations must assume their responsibility for the economic consequences that this decision may entail."

Mr Barahona said rental companies were being blamed as the main culprits of the saturation.

"We are forgetting that the industry itself does not generate demand on its own but rather attends to tourists who decide to come to our borders for other reasons. Therefore, the consequence is being attacked and not so much the cause," he insisted.

"There is no analysis of the possible scenarios or an alternative transport plan and there is a lack of technical justification and proportionality and the study of mobility alternatives and the economic and social impact of this limitation is not addressed."

The Federation believes Ibiza council's decision is "an attack against fundamental principles of citizenship: freedom of movement, market unity and free competition". For this reason, it is demanding the suspension of the application of the rule this summer and that in 2025 data be collected that will allow an effective strategy to be implemented to guarantee the sustainability of transport.

"Otherwise, this action could be an attack not only on the fundamental rights of citizens but also a serious damage to the economy of Ibiza," said the employers' association, which has stated that, among the most immediate effects, there will be a drop in the quality of service by some companies, as well as a rise in prices due to the reduction in the supply of vehicles. A decision that, in addition, will also damage the image of the island as a tourist destination.

Under the new rules, only 16,000 rental cars will be allowed in Ibiza compared to the almost 28,000 that rent-a-car companies had requested.

Of the legal action announced by the hire car companies, Ibiza council says it will not be threatened or intimidated  and "is responding to the general interest of the island and its citizens, who are demanding control and limitation measures to preserve balance and sustainability."

"This complaint from rent-a-car companies only demonstrates that the limitation is real. Before the season has even begun, almost 12,000 (11,786) rental vehicles have already been cut, and they will not be circulating on the island's roads this summer. We have set a firm roadmap and threats will not intimidate us," said a spokesman.

The new regulations on Ibiza also affect the flow of private cars.

From June 1st, tourists who want to bring their cars onto the island must apply for authorisation and pay a daily fee of a euro to do so. The charges will apply from June 1st to September 30th.

Anyone wanting  to bring a car on to Ibiza can apply do so as the website https://ibizacircular.es (available in English) goes live. It explains all of the rules and exceptions.

Tourists bringing cars on to the island will be allowed to do so provided the maximum quote of 4,168 has not been reached.

Those who opposed the new charge said six euros for six days, for example, was too much and would harm tourism.

Motorcycles and vehicles owned by non-residents of Ibiza who own a home on the island will also not be required to pay the €1 daily tax. This exemption will apply only "to one vehicle per owner, as long as it is proven that the vehicle is tax domiciled in that home."

Vehicles owned by residents of Formentera, Menorca, or Mallorca "who prove they regularly need to travel to Ibiza for work" will also not have to pay the €1 daily fee. Vehicles belonging to people with reduced mobility, official and public service vehicles, including those used by law enforcement agencies, firefighting vehicles, ambulances and healthcare vehicles, hearses, civil protection vehicles, public and school transportation, taxis, waste disposal vehicles, and public cleaning services will also not have to pay the €1 daily fee.

Mallorca announced last week that it too is considering limiting cars as part of its plans to cut tourist overcrowding.