The Galapagos Islands are a dream destination, a bucket-list spot for travelers worldwide. But beyond the stunning landscapes, there's a growing social divide; hoteliers and local families fiercely debate on Facebook, taking political sides and trading insults over one major issue: Airbnb’s rapid rise in the islands.
Sure, choosing between a hotel and an Airbnb seems like a simple preference - comfort vs. flexibility. But in the Galapagos, where over 85% - some say more- of the population relies on tourism, this decision has far-reaching impacts on the environment, economy, and local livelihoods.
The Rise of Airbnbs (and the Problems They Bring)
Airbnb has exploded in The Galapagos. Once a niche option, it’s now a go-to for many travelers looking for budget-friendly stays. But here’s the catch: most Airbnbs in the Galapagos are illegal - they don’t have the proper permits, they don’t pay the same taxes as hotels, and they operate outside the regulations designed to protect the islands.
This spike in unregulated Airbnbs leads to serious issues:
Strain on resources – The islands are already struggling with waste management, water shortages, and energy consumption. More Airbnbs mean more tourists staying longer, using more water, electricity, and producing more trash.
Loss of tourism revenue – When tourists stay in unregulated Airbnbs, they often cook their own meals instead of eating out, and bypass the businesses that fuel the local economy.
Legal hotels can’t compete – Hotels in the Galapagos follow strict rules and pay taxes to different government institutions. Let’s see the disparity below, where Airbnbs skip most, if not all of them, allowing them to charge significantly lower prices:
Fire Department permit
Employee wages
Social security (IESS)
Environmental licensing fees (Registro o Licencia Ambiental)
All costs involved to pass and get permits from Ministry of Tourism, Fire Department, Galapagos National Park and City Hall
And lets be honest, it's not just Airbnb platform not requesting proper legal documents to approve a listing in The Galapagos Islands, other OTAs like Booking.com, Expedia, and Vrbo are also listing accommodations in the Galapagos without requiring legal documentation proving they are a legitimate business, making it easier for unlicensed rentals to thrive.
Pros and Cons of Hotels vs. Airbnbs in the Galapagos
HOTELS
Pros
Professional Hospitality – Hotels employ trained staff who ensure high standards of cleanliness, service, and guest safety.
Compliance with Laws – Hotels follow all legal requirements, including fire safety, social security for employees, and proper tax contributions.
Sustainable Practices – Many hotels implement waste management programs, water conservation, and energy-efficient systems to protect the environment.
Supports Multiple Families – A hotel provides stable jobs to many people in the community, supporting multiple families through direct employment and local suppliers.
Cons
Higher Prices – Hotels have more expenses due to regulations and wages, making their rates higher compared to Airbnbs.
Less Privacy – Hotels often have shared spaces and may not provide the same secluded experience as a private Airbnb rental.
AIRBNB
Pros
Lower Costs – Since most Airbnbs don’t pay for permits, taxes, or employee wages, they can charge significantly less than hotels.
More Space & Kitchen Facilities – Many Airbnbs offer larger accommodations with kitchens, ideal for families or long-term stays.
Cons
Unregulated & Unmonitored – Many Airbnbs in the Galapagos operate illegally, bypassing essential safety and environmental laws.
Negative Economic Impact – Unlike hotels, where revenue is distributed across multiple employees and suppliers, Airbnb profits usually stay with one family, limiting broader economic benefits for the local community.
Environmental Strain – The increase in tourists staying in unregulated properties puts a heavy burden on waste systems, water supply, and electricity grids.
Environmental Challenges: The Galapagos Can’t Handle It
The Galapagos isn’t just another tropical getaway, it’s one of the most fragile ecosystems on the planet. Every extra tourist puts more pressure on resources that are already running out.
Trash, Trash, and More Trash – Waste system is collapsing. With ten tons of garbage produced every day, the islands just can’t keep up. Unlike hotels, which have waste management policies, Airbnbs operate individually, meaning more trash is generated with no sustainable disposal system.
Water? What Water? – Freshwater is already scarce in the Galapagos. More tourists in unregulated Airbnbs means even more stress on a system that’s already failing.
Electricity Overload – Hotels are built to handle high energy consumption responsibly, but when more tourists stay in homes that weren’t meant for constant occupancy, the island’s energy grid suffers. The Galapagos still relies on imported fossil fuels, and an uncontrolled rise in Airbnbs is making the transition to renewable energy even harder.
The Economic Reality: Locals Are Losing Out
Tourism is the lifeblood of the Galapagos economy, but the rise of Airbnbs is pushing money away from locals who live and work here.
Restaurants are struggling – With Airbnbs offering kitchens, fewer tourists are eating out. That’s lost income for local restaurants and food suppliers.
Hotels are losing guests – Legal hotels are losing business to unlicensed rentals that don’t follow the same regulations.
Job losses – Hotels employ locals. They provide stable jobs with benefits. If they can’t fill rooms, they cut jobs. Less staff means fewer locals benefiting from tourism.
Housing crisis – More homes being used as Airbnbs means fewer homes available for actual residents and non-resident professionals that work on the islands. Rental prices go up, and locals struggle to afford to live in their own community.
Airbnb Revenue Stays with One Family – Unlike hotels, which distribute income among multiple employees, housekeeping staff, maintenance teams, and local suppliers, Airbnb profits typically benefit just the property owner and their immediate family.
So, What Can You Do? Be a Responsible Traveler!
If you’re coming to the Galapagos, make sure your trip helps the local community and protects the environment. Here’s how:
Stay in a licensed hotel or guesthouse – These businesses follow regulations and contribute to the local economy.
Eat at local restaurants – Support the people who live and work on the islands.
Book tours with certified operators – Avoid under-the-table businesses that don’t contribute to conservation efforts and safety protocols.
Respect conservation rules – Limit waste, follow National Park rules, conserve water, and reduce energy consumption.
When you visit the Galapagos, you’re stepping into one of the most delicate ecosystems in the world. Every choice you make impacts on the people, the wildlife, and the future of the islands. So, before you hit that "Book Now" button on Airbnb, ask yourself: Is this really the best choice for The Galapagos Islands? - Sustainable tourism is the only way to keep this paradise intact. Let’s do it right.
As a proud hotelier (Hotel Santa Fe), we’ve worked hard to earn our 4-star certification, a name in the market and following every rule. But if the government won’t act, why should we keep paying permits and taxes while others don’t? Maybe it’s time to skip the red tape and turn to Airbnb too or build some.