In a recent meeting of the Comisión de Educación, Turismo y Cultura held on April 29, 2024, significant concerns were raised regarding the regulation of short-term rental properties, known as Alojamiento Comercial Privado (ACP), in Puerto Rico. The discussions highlighted the challenges posed by the proliferation of unregulated rentals, often referred to as "ghost hotels," which are operating without the necessary permits and licenses.

One of the key points made during the meeting was the financial impact of these unregulated rentals. It was reported that commercial operators of ACP have generated sales of approximately $800 million, alongside $125 million in registrations, permits, and licenses. However, the lack of enforcement of existing regulations has allowed many properties to operate outside the legal framework, undermining the integrity of the tourism sector and affecting local housing markets.

The meeting also addressed the implications of proposed legislation that seeks to limit municipalities' ability to regulate these rentals. Participants argued that local governments are best positioned to understand and manage the unique challenges within their communities. The proposed restrictions could hinder municipalities from effectively addressing the issues related to ACP, which include the negative impact on affordable housing availability.

Moreover, the discussion underscored the importance of compliance with existing regulations. It was emphasized that all operators, whether they run a small bed and breakfast or larger rental units, should adhere to the same standards as other businesses in the tourism sector. This includes obtaining the necessary insurance and permits, which are crucial for ensuring safety and accountability.

The meeting concluded with a call for careful consideration of data and studies related to the impact of ACP on housing accessibility. Participants expressed skepticism towards findings from organizations that downplay the negative effects of short-term rentals on local housing markets. They urged the newly proposed commission to rely on credible research to inform their decisions and policies moving forward.

Overall, the discussions at the meeting reflect a growing urgency to address the challenges posed by unregulated short-term rentals in Puerto Rico. As the tourism industry continues to evolve, the need for effective regulation and enforcement remains critical to protect both the local economy and the availability of affordable housing for residents.