Paris 'risks turning into Venice Sky-high demand for small rooms in the City of Light has led to a booming short-term rental market, with the Paris town hall estimating around 30,000 such flats are currently illegally being rented out to foreign tourists at above-market rates. However, second home rentals require special town hall authorisation and paying into a costly financial compensation system. Many property owners use online agencies that bypass this compensation system. Agents say such rentals of flats are vital in city reaching saturation rate in terms of hotel capacity. "Despite the spread of tourist flats, the occupancy rate of hotels in Paris was over the 80 per cent mark last year," one told Le Parisien. That proves the needs are huge. But the Socialist-run town hall does not agree. With the proviso that "every flat rented to a tourist is a flat less for a Parisien," it has created a unit of inspectors to crack down on such illegal rentals. It has also called on the Socialist government to further tighten the rules, forcing flat owners to ask for permission from all flat owners in a bloc before renting out to tourists.