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Decentralisation of authority over Local Accommodation (AL) to Town Halls

Town halls and local accommodation have a new relationship. On 23 October, a new decree-law published by the government gave municipalities more powers in the area of Local Accommodation (AL). In this decree-law, new powers in the ‘attribution, regulation, supervision and promotion of intervention processes in Local Accommodation units’ were decentralised from the government to the municipalities.

This recent attribution of more power to municipalities with regard to the management of local accommodation (AL) brings with it a number of advantages and disadvantages that must be weighed up.

Pros of Decentralisation

  • Adaptation to Local Realities:

Municipalities, being closer to the local reality, are in a better position to identify the specific needs and problems of each area, and can thus create more appropriate and effective regulations.

It allows for greater flexibility in the application of rules, taking into account the unique characteristics of each locality.

  • Greater Citizen Participation:

Giving municipalities more power promotes greater citizen participation in decisions that directly affect their communities.

Municipalities can organise public consultations and listen to residents’ opinions, ensuring that the rules are fairer and more balanced.

  • Combating property speculation:

Municipalities can implement stricter measures to control excessive LA growth, preventing a shortage of housing for residents and rising property prices.

Through specific regulations, containment zones or limits on the number of licences can be defined.

  • Improving coexistence:

By having more control over LA, municipalities can implement measures to minimise conflicts between residents and tourists, such as setting quiet hours or creating exclusive leisure areas for residents.

  • Promoting Local Development:

Municipalities can use LA as a tool to promote local economic development, encouraging the creation of local businesses and the valorisation of cultural heritage.

Cons of Decentralisation

  • Inequalities between municipalities:

The capacity of municipalities to manage LA can vary significantly, depending on their financial, technical and human resources.

Smaller municipalities or those with fewer resources may find it difficult to implement and enforce the new rules.

  • Lack of coherence at national level:

The decentralisation of power can lead to greater fragmentation of legislation and a lack of coherence at national level, hampering tourism activity and creating obstacles for operators in the sector.

  • Risk of Local Protectionism:

Some municipalities may adopt protectionist measures that limit the development of tourism and harm the local economy.

  • Increased Bureaucracy:

The creation of new regulations and the need to monitor compliance could increase bureaucracy and costs for LA operators.

  • Difficulties in Collaboration between Municipalities:

The lack of coordination between municipalities can hinder the creation of tourist routes and the promotion of the destination at regional level.

In summary, decentralising power over local accommodation is a measure that presents both opportunities and challenges. If the benefits are to be maximised and the risks minimised, it is essential that municipalities are accompanied and supported by the government.

This is in fact one of the intentions indicated by the government in this decree-law, trying to establish clear guidelines and that there is close collaboration between the different municipalities and the government, reconciling this activity with the right to housing, recalling, in addition to this, ‘respect for the rights of private initiative’ and ‘private property’, which had been referred to as being at stake with the previous legal formulation and with other parts of the Mais Habitação package. It also notes the need to reconcile ‘the economic and urban impacts of this activity in Portugal’.