There is an 'abject failure' by the European Union to recognise the impact of short-term lets on coastal and rural communities.
That's according to Councillor Cillian Murphy, Fianna Fáil Councillor for West Clare.
He was speaking after the bloc said Irish proposals to clamp down on short-term lets are 'too restrictive'.
The Government had been hoping to free up thousands of homes by clamping down on short-term lets like Airbnb.
Under the proposals, which Airbnb welcomed last year, owners would have to be registered with Fáilte Ireland.
Councillor Murphy told The Pat Kenny Show short-term letting is particularly harmful for rural communities.
"There's an abject failure here by the EU to recognise the impact of short-term lets on coastal and rural communities here," he said.
"It's almost disproportionate.
"It's easy to look at the big urban centres and say, 'The impact is here'.
"If you take any of coastal communities - I live in Kilkee - 70% of our houses in the town of Kilkee are holiday homes or second homes.
"What we're facing is... effectively any houses that are coming for sale in places like Kilkee, your local person is in competition internationally for that house.
"Somebody is looking at it and saying, 'OK I can either use it as a second home or I'm getting a significant income out of it'".
'They're holidays homes'
Councillor Murphy said planning permission conditions set on new homes in rural Ireland are already being broken.
"People are building houses - there's a condition in the planning that these are for permanent occupancy only," he said.
"Everybody knows they're not, they're holiday homes.
"There are people coming down, spending six or eight weeks".
He said while the town and businesses rely on tourism, there is a better way to do things.
"What we're seeing at the minute is a complete imbalance - there is no balance left in the marketplace," he added.
'Massive issue in Dublin'
Dublin Renters Union co-founder Peter Dooley said short-term lets have "created a massive, massive issue in Dublin city."
"Over the last number of years, we've been calling for a ban on entire homes and apartments being let out on these short-term letting platforms,” he said.
"They actually cause a total imbalance in terms of the supply issue around long-term affordable accommodation for people in desperate need of rental accommodation.
"It actually has a negative impact on local economies, despite the language coming out from some of these Airbnb lobbyists.
"[They] have portrayed it as protecting local communities - it flies in the face of protecting local communities.
"It actually destroys local communities and leads to enhanced gentrification," he added.