Gray economy in tourism coming to an end for low end investors
Poland’s government plans to regulate the short-term rental market through amendments to the hotel services law, aiming to curb the gray economy and restore local control. The proposal by the Ministry of Sport and Tourism would allow municipalities to designate zones where short-term rentals are banned in non-hotel properties. A Central Register of Tourist Accommodation Facilities (CWTON) with mandatory ID numbers is also planned to improve enforcement.
The industry supports market formalization and minimum safety standards but criticizes proposed fines of up to PLN 50,000 as disproportionate, especially for small operators. Experts argue penalties should depend on revenue and the scale of violations. The reform is still at an early stage and subject to public consultations.