Does the new law threaten world-class hostels in Portugal?

their top priorities in 2016,' adding that they aim to increase the public housing stock from the current 2%. "It is necessary to find answers that can adapt to the needs of the population at every moment, with the ultimate goal of ensuring that everyone has access to decent housing," he added. "We, like other European countries, have problems with huge urban pressures, tourism and real estate, and the approval of a new set of more operational measures will complement the existing [measures]. "

A government spokesman claimed the law would not affect hostels and guesthouses, but nowhere in the law does it confirm this, and the law constantly refers to measures affecting 'establishments for accommodation', a legal term describing hostels and''guesthouses.

Resolutions of the new law could have far-reaching consequences for owners of "alojamento local" (AL) properties, including Portugal's world-famous hostels. The law will result in a moratorium on issuing new AL licenses until 2030, with the exception of "low density" municipalities and individual townhouses and villas. Municipalities will also be able to suspend licenses if they declare a housing shortage. After 2030, licenses will be renewed every five years at the discretion of local authorities. Condominiums will also be able to revoke AL licenses for units within them by majority vote. AL facilities outside of low-density neighborhoods will also be subject to increased property taxes, as well as a new tax in''at a rate of 15%, known as CEAL. A new short-term rental license would require unanimous consent from neighbors.

"The only [type of accommodation] that is slipping away is hotels," says Eduardo Miranda, president of ALEP, an association of AL facility owners. The law is now with Portugal's president, who can either approve it, veto it or send it to the country's Constitutional Court. Portugal's housing crisis has brought residents to the streets in protest this year, with activists calling it a "social emergency." Portugal is one of the poorest countries in Western Europe, with a minimum wage of 760 euros ($838) a month, and more than half of workers earn less than 1,000 euros ($1,103) a month, according''Reuters.

Meanwhile, rents in Lisbon alone have risen 65% since 2015, including a 37% increase in 2022. A government official told CNN that tourism has helped Portugal's economic recovery in recent years, but has driven up housing and rental prices in popular destinations and elsewhere, forcing families to relocate or face growing financial hardship. About 6% of properties in Lisbon and 7.4% of properties in Porto are registered as AL, they said.

The new legislation threatens the future of all hostels in Portugal, says Miguel Santos, a board member of the Associação Hostels de Portugal (AHdP) and owner of a hostel in Lisbon.