BUSINESS MAVERICK: Devil’s in the detail as government toys with regulating Airbnb

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BUSINESS MAVERICK: Devil’s in the detail as government toys with regulating Airbnb By Ruan Jooste duritz79

The Tourism Amendment Bill has created much angst among people making their living from providing short-term lodging on web-based platforms such as Airbnb. The bill, released on April 12,

He said that the bill stipulates that these online offerings are similarly regulated to guest houses and other lodging establishments in South Africa.It will level the playing field,” he said. “It’s about getting the balance right from a competition perspective.”If homeowners are to run an Airbnb as a full-time business, it should be treated as such, and also pay its fair share of taxes, he said.

But more opposing voices are raising the issue that “short-term rentals can be disruptive to the traditional lodging industry and trigger gentrification processes; housing affordability and availability are jeopardised when housing units are turned into vacation rentals”. Airbnb has seen impressive growth in South Africa, and a lot of this came at the expense of established bed-and-breakfasts and hotels.We’re not saying they must be like hotels. We’re saying we can’t just leave that space untouched, unregulated,” he said.

If the bill is to be enacted as it stands, it will be at the minister’s discretion to what the appropriate measures will be in terms of periods of stay and remuneration, and not a blanket approach of fixed rules. The measures will probably be clarified with subsequent regulations from the ministry itself. This is in line with global trends.Sakeliga said it would object to the bill as it could “seriously harm” small-scale, short-term home rental businesses.

 

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