Tourist-rental sector seeks compensation for State of Alarm losses

An association representing tourist-rental property owners has started proceedings to claim compensation for losses incurred during the ‘State of Alarm’ imposed by the government.

Fevitur, a national federation of tourist rental associations defending the rights of owners who rent their properties out to tourists, is suing the Spanish government for damages resulting from the ‘State of Alarm’ restrictions that reduced incomes from tourist rentals.

Fevitur estimate the sector has lost more than €13b as a result of the State of Alarm the government imposed in response to the coronavirus crisis, which caused thousands of companies to close, with the loss of thousands of jobs.

Fevitur (full name la Federación Española de Asociaciones de Viviendas y Apartamentos  Turísticos or Spanish Federation of Associations of Tourist Homes and Apartments in English) argues that the government’s response to Covid-19 has been “contradictory, incoherent, restrictive, and harmful to businesses,”  and aims to “recover the cost incurred and average profits lost by companies in the residential tourism sector, and contribute to the regeneration of the sector’s industrial fabric.”

It seems the federation proposes launching individual suits against the administration for each person or company affected, rather than a class action on behalf of all members of the federation. Fevitur urges all owners of tourist rentals who have suffered economically because of the State of Alarm to get involved.

It’s hard to see how this initiative will get anywhere.

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