Airbnb policy boss wants ‘fair’ regulation before COP31 surge
A registration scheme and a code of conduct would be welcomed by Airbnb, but the hotels sector warns of a “real and growing threat to employment and the viability of the SA accommodation industry” should tougher rules not apply.
As part of a Parliamentary inquiry into the short-stay accommodation sector, digital platform Airbnb said it would support regulation that is “fair and sustainable”.
This specifically includes a mandatory state-wide registration scheme to collect accurate data and a linked code of conduct so that expectations are clear on guests, hosts and platforms.
Its recommendations would support Airbnb’s continued growth in South Australia, AU/NZ head of public policy Michael Crosby told InDaily.
The SA Greens MLC Robert Simms-led inquiry is considering regulating the short-stay accommodation sector.
Simms earlier this year said the regulation of the sector was not a binary debate.
“Rather, what we’re looking at is, is there room for some level of regulation of the sector to make sure that we’re getting the balance right,” he said.
But onerous regulation, such as New York City’s effective ban on short-stay accommodation for less than 30 days, would take a hammer to Adelaide’s bourgeoning accommodation industry, Crosby said.
“We’ve got a real opportunity to help shape a new set of rules and regulations for the state,” Crosby said.
“The inquiry that has kicked off here has been a really excellent opportunity to work with all parties in the Parliament to start to develop a new set of rules that will work for the state.
“I’ve got to commend the way in which the committee members have actually approached this with a very open mindset.”
He said mandatory registration was a strong building block to kick off further regulation.
Airbnb’s submission said a registration scheme would be similar to those that already exist in New South Wales, Tasmania and Western Australia.
A registration system would be “simple, centralised and state-run”, where hosts can input their information and obtain a registration number via an online platform.
It would be mandatory for hosts to ensure that all data relating to short-term letting activity is being accurately captured, Airbnb said.
That data would be important for city councils that impose different rates on these properties.
You might like
| Sponsored |
In its 2024-25 budget, the Adelaide City Council imposed higher rates on short-stay accommodation owners – about 20 per cent higher than the residential rate – for those that lease their home out for more than 90 days in a year.
As there is no data collection being done, the Adelaide City Council paid for research to identify short stay rentals that met the conditions of its new rates structure.
Crosby said a digital registration and data collection system would ensure that some property owners weren’t unfairly slugged with extra rates.
“The way that some councils in South Australia – including the Adelaide City Council – have looked at this is to identify properties which are advertised for more than 60 days, not booked,” he said.
“That means, in theory, if one of our hosts leaves their calendar open and doesn’t actually take any bookings, they may get slugged with a rate rise notice, even though they haven’t actually made any money off that process.
“We said that’s pretty unfair. We think the registration scheme could be optimised so that this is set up fairly and appropriately.”
The COP31 opportunity
Onerous regulation runs the risk of stifling the industry amid the state government’s push to have regular, major events in the city, Crosby said.
Crosby was concerned that annual caps on availability and increased taxes or levies could have a detrimental effect and would remove short-stay accommodation from the market.
He said companies like Airbnb play an important role in facilitating these events.
Crosby welcomed recent public comments by Premier Peter Malinauskas in support of short-stay accommodation.
Speaking at the Adelaide Economic Development Agency (AEDA) Business Summit last month, the Premier said the city won the support of the Federal Government to host climate conference COP31 here because of “the number of people that came and were able to be accommodated through the massive expansion in the size of the Airbnb and short-term rental market” during Gather Round 2024.
“There’ll be some cash to be made next year if we get this – I’ll give you a hot tip,” the Premier said.
He said COP31 would be a coup for the state, should Australia beat Türkiye to win the rights to host the UN climate conference.
The state government said hosting COP31 could yield an estimated $511.6 million in economic benefits for South Australia and would “eclipse all these other major events” like LIV Golf, Gather Round and The Fringe – cornerstones of the Premier’s events policy.
“This is up there in terms of size and scale as the Olympics,” the Premier said.
However, it will require a considerable increase in the number of beds available to guests in Adelaide.
Crosby said Airbnb could play a serious role in facilitating the influx of visitors during COP31.
Airbnb listings in Glasgow rose significantly ahead of COP26 in 2021. Photo: Unsplash
Oxford Economics research showed more than 40,000 delegates attended the 26th United Nations Climate Change Conference in 2021, hosted in Glasgow.
It found “flexible supply enabled by hosts on Airbnb facilitated increased participation during this significant event”, with more than 70,000 guest nights booked on Airbnb in Glasgow during the COP26 period. Of those guests, 60 per cent were from outside of the United Kingdom.
The research also found that the supply offered on Airbnb eased pressure on existing accommodation infrastructure.
Stay informed, daily
Airbnb data from the time indicated that listings on the platform in Glasgow grew faster by 73 per cent in the three months leading up to the event compared to the same period in 2019.
Further, private room listings growth was 113 per cent higher leading up to COP26.
“Our analysis indicates that without the listings on Airbnb, Glasgow would have required 19,000 additional hotel rooms to adequately accommodate all guests when demand was at its peak during COP26,” the research found.
Crosby said this highlighted an opportunity for Adelaide and South Australia to “showcase itself on the world stage”.
“We’re at the point where we need the Premier to rule out harsh restrictions on the short-term rental sector, because that would provide more certainty in order to be able to support these world-leading events that South Australia is putting on,” he said.
Calls for extra taxes and fears of threats to hotel industry
In a submission to the Legislative Council inquiry, the Australia Hotels Association South Australia (AHA|SA) warned that the growing number of unregulated short-term rental accommodation properties “poses a real and growing threat to employment and the viability of the SA accommodation industry”.
Like Airbnb, the AHA|SA said regulation was required to “properly manage” the industry.
“Whilst hotels, motels, bed and breakfasts, serviced apartments and hostels all must comply with a myriad of regulations, properties that are listed on peer-to-peer platforms, such as Airbnb, do not,” the AHA|SA said.
“This inequity has historically been impacting the viability of hotels, putting employment and training opportunities at risk, undermining investment decisions, jeopardising the safety of guests and adding to the strain of the long-term rental crisis.
“The AHA|SA has always expressed concern with the fact that STRA operates unregulated in South Australia, and these concerns are now further highlighted by the acutely chronic housing shortage currently being experienced across the State. The housing shortage is particularly felt across the regions, where there is both a shortage of skilled workers and nowhere to house them.”
Photo: Raphael Christinat
It also called for mandatory registration of short-stay accommodation properties with minimum stay requirements of seven to 30 nights.
Further, the AHA|SA wants to mandate that accommodation providers reside at the residential premises during the short-term rental agreement and that “neighbours, co-tenants and landlords must be empowered and allowed to have a say”.
The South Australian Council of Social Service suggested extra taxes or levies could be applied on short-term accommodation providers in its submission.
It pointed to newly introduced Victorian taxes that impose a 7.5 per cent levy on booking fees paid for short-term accommodation for stays of less than 28 days.
A tax on long-term vacant residential stock was another submission.
“The logic is the same in providing an incentive to put housing stock into permanent housing market,” SACOSS said.
“The proposed tax would recognise that vacant properties have a wider social cost (depressing local neighbourhoods) and it would provide some incentive for landowners to either sell or convert properties to productive use,” it said.
“There is inevitably devil in the detail of any new tax, and SACOSS is not suggesting that a vacancy tax, or even a combination of vacancy and short-stay accommodation taxes, would solve the current housing crisis. However, such taxes should form part of a suite of government responses to the crisis in rental availability.”
Homelessness services provider Hutt St Centre said in its submission that “the conversion of long-term rental housing into short-term rentals has significantly reduced the availability of affordable housing stock in Adelaide, particularly in areas with tourism appeal”.
“During ‘Mad March’ and other major city events, we see a significant surge in demand for our services as short stay accommodation absorbs much of the available housing stock,” it said.
“It becomes increasingly difficult for us and other support services to secure emergency accommodation, with prices often tripling, leaving more people displaced and without safe shelter, and placing even greater pressure on Hutt St Centre’s resources.
“The situation is compounded for low-income earners who cannot compete with tourist-driven rental prices or meet the criteria for “affordable housing”.”
The organisation said it did not support punitive taxation as the primary mechanism for increasing rental supply, rather “we advocate for targeted incentives for landlords to lease to low-income tenants”.
“We believe this positive approach will encourage greater participation in the long-term rental market while maintaining housing quality and community cohesion,” it said.
The committee is expected to finish hearing evidence in June, with recommendations expected later in the year.
