Heading for court - the Balearics one billion euros a year boat hire business

The regional government is warning it could ultimately withdraw moorings

Boats in Menorca

The regional government wants to tackle "disguised rentals" | Photo: Josep Bagur Gomila

| Palma | |

The Balearic and Spanish governments seem destined to see each other in court over a regulatory change to the hire of boats in the Balearics.

In January, the regional ministry for the sea amended a 2017 decree which regulates boat hire; this is not scheduled to be finally approved until some time this summer. It bans companies without a mooring, regulated buoy, or docking place in the Balearics from operating and prohibits individuals from renting out their boats for three months a year.

The government aims to curb overcrowding, reduce recreational boating accident rates and put an end to unfair competition that boat rental companies with or without skippers have been complaining about for years.

However, this has run up against objections from Spain's directorate for the merchant marine. A ban on private individuals renting out their boats for profit "invades state powers and violates the principle of equality by preventing an activity that is legal in the rest of the national territory". The matter therefore looks as if it will end up with the Constitutional Court in Madrid, the court which arbitrates on legislative differences between the state and regional governments.

Boat rental is serious business in the Balearics. The islands lead the national ranking of charter boat registrations, and the numbers continue to rise each year. In 2024, 904 new boats were registered, more than half of which were destined for the rental market. The charter sector is estimated to have a turnover of more than €1 billion annually and to generate more than 5,000 jobs on the islands.

The Balearic Government wants to stop the "disguised rental" of boats, a practice that, as with the rental of holiday apartments, has soared in recent years. If the decision is ultimately to allow private individuals to market their boats for a maximum of three months a year, the regional government could take a further measure. Toni Mercant, the director general for maritime transport, says the government will withdraw mooring rights in its ports from individuals who use their boats for profit.

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