Barbados’ developing housing crisis

This article was written and submitted by Hutson Inniss as a Letter to the Editor.

There was an article in another section of the press that brought into focus a housing crisis currently developing quickly in Barbados. The success of the Welcome Stamp programme and Airbnb rentals has resulted in a surge in the demand for short-term rentals which is fuelling an acute shortage of affordable properties that were previously available for rent to locals.

According to reports by real estate agents, it has become almost impossible to find apartments for rent between $900 to $1 600 because property owners are choosing to furnish their apartments and lease them to visitors on a short-term basis at much higher prices. This situation is taking a toll on young couples and individuals who recently entered the job market and wish to move away from the congestion and lack of privacy of their parents’ homes and venture out on their own. We have already seen reports of an increase in homelessness in Barbados, and it appears that the situation will only get worse.

Rental impact

The push back that has accompanied the introduction of the Tourist Accommodation Bill is perhaps an indication that the Government may have grossly underestimated the impact of short-term rentals and the demand for low-priced apartments on the real estate market, which is less visible than the market for highend villas that is clearly evident from the rampant construction along the south and west coasts. The result of this development is that, not only is housing accommodation for locals becoming less accessible, but the cost of living continues to rise exponentially. One real estate agent observed that “every year, the ability for a local Barbadian to get a property is going further and further out of reach. Most developers are catering to the outside market”.

Barbados is not alone in this crisis. Al Jazeera recently produced a documentary highlighting the extreme situation that currently resides in Spain. As a result of the excessive demand for Airbnb properties and the resulting unavailability of rental units for locals, there has been a wave of protests in Barcelona, Tenerife and Mallorca where the housing crisis has reached the point where shanty towns driven by homelessness are springing up due to the fact that residents cannot find affordable housing. There have also been hostile confrontations on the streets of Italy, Spain and Portugal as residents register their protests against the impact of overtourism.

Driven by the high demand, the proliferation of unregistered accommodations has reached the point where the Spanish authorities had to intervene ordering Airbnb to delist thousands of unregistered properties that have found their way on to the market. Their experience has shown that, where there is a high demand, operators will find ways of flouting government regulations in order to take advantage of lucrative business opportunities.

The populations in Europe as well as in Barbados welcome the benefits tourism brings to the local economies, but sooner rather than later authorities will have to seriously assess the total impact of tourism and determine where the boundaries must be set. It sounds great to report year-on-year increases in tourist arrivals, but this cannot be sustained without a corresponding analysis of the progressive impact on the local population, the environment and the economy.

The move to capture visitor registrations at the place of accommodation as the new legislation proposes will no doubt prove to be less effective than having more detailed information taken at the point of entry. Operators of Airbnb accommodation who want to remain under the radar will not be persuaded to submit information to the Barbados Revenue Authority.

Accommodation

Specific targeted research is required to show the real impact of the developing trends. Do the majority of Airbnb guests who pay less for their accommodation have more disposable income available to eat at restaurants and enjoy local attractions, or are we simply attracting a larger number of low-income tourists who have only enough for basic accommodation and food at the nearest supermarket?

How much benefit is the island really deriving from guests who stay at the expanding range of all-inclusive hotels where their entire spend is concentrated at a single hotel, having paid for their entire vacation before reaching the island? Do we know where the cruise ship passengers are actually spending their money? Can we really afford to have a hotel where the Holetown civic centre is currently situated? Do we need one to displace the civic centre at Oistins as has already been announced by the Government?

What is clear is that we cannot simply continue to fit high-rise hotels and villas on to every available square foot of land on or near beaches. It will only be a question of time before the same problems that have caused disquiet among the local residents in European tourist centres trigger vocal protests here as Bajans see the diminishing beach recreational spaces give way to the expansive spread of beach chairs and umbrellas occupied by tourists. It’s great to know that we still have access to our beaches, but what good is that access if it is confined to a narrow foot path leading to a sea of umbrellas, with property owners contesting where the variable high-water mark begins and ends?

We are already seeing the negative economic fallout. Let us not wait for tempers to flare before we start to pose serious questions about the capacity the island is able to handle reasonably. Once discontent or insecurity starts, there will be no space for the tourists or the locals to retreat to, and there will be no time to develop alternate strategies.