SA business lobby to challenge proposed law to regulate Airbnb

Sakeliga says the government is reinventing the wheel and, at worst, letting the air out of the tourism industry’s tyresA business lobby group says it is considering legal steps to challenge a new bill meant to regulate short-term home rentals, including those on online platforms such as Airbnb.

Echoing calls to regulate ride-share platform Uber, which has disrupted the taxi industry worldwide, local tourism industry players have long called for Airbnb to be regulated. The Federated Hospitality Association of SA argues that unregistered accommodation establishments marketed via Airbnb should be under the same regulations that are applied to the official tourism sector.

“The bill is ostensibly aimed at promoting the tourism industry, but really the bill is about intervening in the business of small-scale, short-term home rentals and the services offered by companies like Airbnb,” said Gerhard van Onselen, senior analyst at Sakeliga. Van Onselen said an increased supply of short-term rental units results in healthy competition. “Market innovations help to weed out poor service providers. At best, government is reinventing the wheel and — at worst — it’s letting the air out of the tourism industry’s tyres.

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