The growth of "populist" movements in Spain is harming the country's economy, with some local governments resisting real estate development and threatening the growth of tourism, according to Ismael Clemente, the CEO of Spain's largest listed landlord, MERLIN Properties.
Speaking during a panel discussion on the Barcelona and wider Catalonia market at the 2018 MIPIM real estate conference in Cannes, France, Clemente said excessive regulation and the "increas[ing] presence in major municipalities of populist parties" were Merlin's main obstacles to growth in Spain.
"To get a license for a minor renovation [of a shopping center] today is a ... nightmare, because many people by ideology are against shopping centers because they think they go against family [values]," Clemente said.
Political and public resistance to the growth of large retail outlets is counterproductive for anyone who is against big business and globalization, Clemente said, as such resistance benefits global e-commerce giants. "My competition is Amazon, which is working 24/7 and not paying taxes in the European Union. And so the populist mayor in reality, indirectly, is defending Amazon. Well done, man!" he said.
"For some reason, between the populism and a general wave of stupidity in the population, there are a number of things that are making business a little bit more difficult," Clemente said.
Barcelona City Council is minority-governed by Barcelona in Common, which is described by many political commentators as a left-wing populist party. Barcelona in Common won the most seats in the May 2015 city council elections, securing 11 of the 41 available. The council elected Ada Calou, the party's lead spokesperson, as mayor of the city in June 2015.
Barcelona in Common's policy agenda includes social justice, environmental protection, community rights and the establishment of a new model of tourism for the city. The city witnessed a series of protests in 2017 against the impact of the tourist industry on the living standards of locals.
Clemente questioned the wisdom of one of world's most popular tourist destinations aiming to limit one of its largest sources of income. It appeared that locals wanted German tourists to simply send them money without visiting the city at all, he said. "Why? Spain is the second-most-visited country in the world, and now we are against tourists?" he said, adding: "[The locals say that] if tourists come, the prices eventually go up and [they] don't like that. Come on, come on! Wake up!"
In January 2017, Merlin Properties sold its 19-hotel portfolio in Spain to a Foncière des Régions unit for €542 million. Clemente highlighted the sale while discussing anti-tourism sentiment in Spain, but did not state that political support for such public feeling was a reason behind the decision.
