Rather than 'Letting', this subject line should read 'Illegal letting' because 99% if not 100% of letting in Los Gigantes is illegal and it seems owners are just not aware of the fact or perhaps they don't want to know! Have to agree with Unhappy as people locally just don't seem to be aware how bad the situation is and how punitive the fines are. I, for one, stopped advertising my apartment a few months ago but am amazed at the number of on-line advertisements for holiday letting in the area - don't people realise what a risk they are taking?! You only have to look at the Owners Direct, Holiday Lettings, Holiday Rentals etc sites to see what I mean.
As to whether it is having an effect - the answer is definitely yes. It has been a slow, downward spiral for the past few years and anyone who can remember Los Gigantes 20 years ago like me, or even 10 years ago will recognise it. It started with the complexes being classed as either residential or touristic - and I believe all complexes in LG are now classed as residential, correct me if I'm wrong. The residential status meant it was illegal to rent and many stopped letting to holiday makers then. Now, with the threat of inspectors and very heavy fines - yes, 18500 Euros - even fewer people are renting out and for the moment if they are sensible, they should stop altogether. (It is also illegal for an individual to rent out on a touristic complex - owners on these complexes can only rent via an on-site agent, so there is no getting away from the fact)
Unfortunately, the full effect, that is, when everybody has been fined so stop advertising, sell their apartments and go elsewhere, won't be felt for another few years - by which time it will be too late! The village will only be 'full' when swallows, such as myself, make our annual pilgrimage in January to March - the rest of the year it will be reliant on the few visits, if any, of families of owners.
It is so sad and if I were the owner of a local business I would be severely worried. What is also sad is how little the local businesses seems to know about it! Perhaps they should read the article in August's edition of A Place in the Sun to get a real grasp of the situation and maybe then, more people will be up in arms about these draconian laws.