Loved by Britons for its all-inclusive hotels, bargain booze and sandy beaches, Benidorm attracts millions of visitors a year. 

But in a bid to tackle illegal holiday rentals, the resort town introduced new measures last year when Benidorm City Council took over responsibility for regulating the area from the Valencian Government.

Now, local authorities have managed to earn a small fortune of over €100,000 from fining dodgy accommodation, The Olive Press reports.

The first four charges amounted to €50,001 each and were halved only after the owners agreed they had broken the law and would pay quickly, according to Javi Jorda, Benidorm’s commerce councillor.

In addition to the first four fines, there are currently 12 more proposed sanctions that are being processed.

Since the local council was granted its sanctioning powers, 196 holiday rentals have been flagged in complaints.

While 107 of the properties were found to be following the law, 16 are facing fines and 73 remain under investigation.

Policía Local Benidorm do the physical inspections and paperwork is organised by the Department of Commerce.

The local council is only one of a few municipalities in the region that has the power to issue direct fines, according to Euro Weekly News. Other municipalities rely on regional officials.

It comes after Airbnb was fined €64million (£56million) by the Spanish government for advertising unlicensed tourist rental homes.

More than 65,122 listings found on the platform consisted of unfair commercial practices affecting consumers and users, such as promoting properties that were not licensed to be rented, which Airbnb has now been ordered to remove from the platform.

The fine issued to the property rental giant is equivalent to six times the revenue generated from the illegal listings, according to Spain's Ministry of Social Rights, Consumer Affairs and Agenda.

Although the government body said the fine cannot be appealed, Airbnb intends to challenge it in court.

A company spokesman told Reuters: 'Airbnb is confident that the ministry's actions are contrary to applicable regulations in Spain and we intend to challenge this fine in court.'

The platform confirmed it is cooperating with Spain's Ministry of Housing to enforce a new registration system after Spain updated its short-term rental rules last July. 

In its effort to curb excessive tourism, Spain, which welcomed 94 million international visitors in 2024, is now cracking down on tourism rentals that use platforms such as Airbnb and Booking.com. 

The country's government, along with some city councils and regional authorities, argue these rental sites have increased housing costs and limited the supply of homes available to locals.

Consumer Rights Minister Pablo Bustinduy said the fine is the second largest the ministry has imposed for breaching consumer rights, following the mammoth €108million fine issued to Ryanair in 2024 for charging extra fees on cabin bags.

In Airbnb's case, the ministry said the fine was intended to help tackle Spain's housing crisis.

Mr Bustinduy said: 'There are thousands of families living on the edge because of housing, while a few get rich from business models that drive people from their homes.'