Spain's government launched a significant offensive against Airbnb last month, keen to show that the nation's economy and housing market are not up for grabs, a government minister has said, stressing that it is determined to safeguard the rule of law against unregulated profit-chasing.

Madrid took firm action by ordering Airbnb to delete nearly 66,000 listings from its site. It accused Airbnb of flouting local regulations due to undeclared licence numbers, inaccuracies in listed licence numbers, or failing to disclose the property owner's identity.

While Airbnb contests the government's directives and is appealing against them, Spain remains a top global destination. Just last year, it welcomed a record-breaking 94 million international tourists — nearly double its population — bolstering its reputation as one of the world's most-visited countries.

Despite tourism reaching new peaks, Spanish cities like Madrid and Barcelona face severe affordable housing issues, with increasing public opposition to short-term holiday rentals, spearheaded by platforms like Airbnb.

The Spanish authorities link the explosive growth of Airbnb and similar rental services to the soaring rents and housing costs. Consumer rights minister Pablo Bustinduy told The Associated Press: "Obviously there is a correlation between these two facts. It's not a linear relation, it's not the only factor affecting it, there are many others, but it is obviously one of the elements that is contributing."

A Bank of Spain report has highlighted a significant housing deficit in the country, with a shortage of 450,000 homes. In popular tourist destinations like the Canary and Balearic Islands, half of the properties are either tourist accommodations or owned by non-residents.

Mr Bustinduy added: "Tourism is for sure a vital part of the Spanish economy. It's a strategic and very important sector. But as in every other economic activity, it must be conducted in a sustainable way. It cannot jeopardise the constitutional rights of the Spanish people. Their right to housing, but also their right to wellbeing."

Spain has witnessed large-scale protests, with tens of thousands demanding government intervention on housing issues. Signs such as "Get Airbnb out of our neighbourhoods" at a recent Madrid rally underscore public frustration with short-term rental platforms.

While Airbnb's appeal is pending in court, the company confirmed that no holiday rentals would be removed from its website immediately. Mr Bustinduy reiterated the need for balance: "A balance must be found between the constitutional rights of the Spanish people and economic activities in general."

In response to the crisis, regional governments are taking action. Barcelona, for instance, announced plans last year to phase out all 10,000 apartments licensed for short-term rentals by 2028, aiming to preserve housing for permanent residents.

In response to a recent directive from Spain, Airbnb has stated that while the platform facilitates connections between property owners and renters, it does not bear oversight duties – albeit it does demand hosts prove compliance with local laws.

Mr Bustinduy expressed that Spain's fresh measures manifest a robust will within Spain and beyond to bring tech giants like Airbnb to heel. "There is a battle going on about accountability and about responsibility," Mr Bustinduy said.

"The digital nature of these extraordinarily powerful multi-national corporations must not be an excuse to fail to comply with democratically established regulations."

Mr Bustinduy, from the left-wing Sumar party that forms part of the ruling coalition, also took aim at budget airlines. Spain has been opposed to allowing low-cost carriers to levy hand luggage fees on passengers.

In the previous year, five budget carriers, including Ryanair and easyJet, were penalised with fines totalling 179 million dollars for imposing charges on hand baggage.

"The principle behind these actions is always the same: preserving consumer rights," Mr Bustinduy said. "Powerful corporations, no matter how large, have to adapt their business models to existing regulations."

Furthermore, Mr Bustinduy dismissed any notion that the Spanish government's stance towards Airbnb would deter tourists from visiting the country.

"It will encourage longer stays, it will encourage responsible tourism and it will preserve everything that we have in this wonderful country which is the reason why so many people want to come here," he said.