10 / 08 / 24
Decree amending and adding various provisions to the Mexico City Tourism Law, Housing Law for Mexico City and the Law for the Integral Reconstruction of Mexico City
MEXICO CITY, MEXICO, October 11th, 2024 – Tourism is an extremely important sector for Mexico City’s economy. This activity represents an important percentage of the local gross domestic product (GDP) and employment in the city. Among the activities that make up the tourism sector is lodging (accommodation in hotels or in residences through temporary accommodation).
Temporary accommodations, such as Airbnb, have had a significant impact and growth in Mexico City, which have allowed homeowners to generate an additional income by renting their properties for short periods of time. Airbnb in Mexico City alone, has amounted to more than 26,000 accommodations, which is equivalent to 50% of the hotel supply in the city.
However, it has also generated challenges such as the shortage of housing available for permanent residents, rising of rental prices in certain areas, and low competitiveness of the hotel sector. For this reason, the Mexico City Government has implemented regulations with the main purpose of balancing the benefits of temporary housing, in order to protect the housing market and competition with the hotel sector.
On October 3rd, 2024, the Congress of Mexico City issued a decree in which several provisions of the Tourism Law of Mexico City (Ley de Turismo de la Ciudad de México), the Housing Law for Mexico City (Ley de Vivienda para la Ciudad de México), and the Law for the Integral Reconstruction of Mexico City (Ley para la Reconstrucción Integral de la Ciudad de México) were amended and added.
First, In Mexico City’s Tourism Law, a fourth paragraph was added to Article 61 Sexies, which establishes that properties used for temporary accommodations must not have an occupancy of more than 50% of the nights of the year. In the event of non-compliance with this provision, the registration to the Host Registry (a digital platform in which persons offering tourist stays through lodging platforms must register) will not be renewed, and such registration may only be renewed up to one year after the non-compliance with said provision.
In case homeowners want to offer more properties or for longer periods, they must follow the provisions of the Law of Commercial Establishments for Mexico City.
Second, Article 36 Bis is introduced to the Housing Law for Mexico City, which explicitly establishes that properties in popular, social and rental housing programs may not be used for purposes other than those established in the program, nor may they be used for temporary accommodations according to the Tourism Law. The same restriction applies to social, popular and sustainable housing, built under Ordinance Number 26.
Finally, a paragraph is added to Article 22 of the Law for the Integral Reconstruction of Mexico City, which prohibits the use of reconstructed housing, according to said law, for purposes other than those foreseen in the reconstruction programs, including temporary accommodation schemes according to the Tourism Law.