Picture: for illustration purposes
Airbnb hosts across South Africa might see changes on the horizon, as there could be extensive measures directed towards the regulation of the short-term home-sharing market. The SA Department of Tourism is set to introduce the Tourism Amendment Bill, outlined in a recently published whitepaper. The bill stipulates 'thresholds' on the number of nights an Airbnb in South Africa may be booked, a move the Department claims will prevent an overflow of unregulated properties on the market. However, this measure has drawn criticism from Airbnb, with the company insisting such implementation would harm the country's tourism sector.
The intention to regulate Airbnb and comparable home-sharing platforms emerged in April 2019 in a bid to address concerns around the unfair competition posed towards traditional establishments like guest houses and hotels, which face higher operating costs due to government taxes, levies, and insurance requirements.
The criticism mainly is not against individual property owners, but operators disguising hotels as homes available for rent. Airbnb, however, is of the view that individual hosts seeking a supplemental income should not be met with the same regulations as large-scale operators.
The proposed regulations, according to Velma Corcoran, Airbnb's regional lead for the Middle East and Africa, might lead to a spike in illegal transactions. There are worrisome examples in cities where strict regulations have resulted in "black markets" for rentals surfacing on platforms like Facebook, lacking the user protection measures provided by Airbnb.
The proposed modifications come in response to the hotel industry's concerns about the undemocratic business practices perpetuated by Airbnb, which are not subject to the same licensing and tax laws as traditional hospitality businesses. Michele de Souza, chair of the Pietermaritzburg Bed & Breakfast Network, argues that short-term rentals should be classified as business entities, therefore subject to all relevant taxes.
As per a recent survey by Airbnb, 50% of 1,800 South African hosts and guests stated that they require additional income due to the rising cost of living, arguing that the service provides affordability to many.