Airbnb operators say adapt

Dunedin Airbnb operators have defended their activity in the face of accusations that while their income is increasing, they are not contributing to city marketing.

They say the commercial accommodation industry demanding they pay commercial rates for their properties needs to adapt to the modern market rather than trying to stifle competition.

But a Queenstown woman who has researched the industry says regulation is happening worldwide, and is inevitable.

The response follows an Otago Daily Times story this week that Airbnb income in Dunedin had more than doubled in just one year to almost $4.4 million.

The news angered commercial operators, who called on the Dunedin City Council to introduce a rating system so all accommodation providers were on a level playing field.

Mayor Dave Cull indicated that could happen before long, as he said Airbnb operators contributed nothing to areas such as city marketing.

Mornington resident  and Airbnb operator Chris Sullivan said in a letter to the editor of the ODT to try to regulate to make "some kind of level playing field" was a waste of time.

"How can you possibly compare the commercial operation of a 20, 50 or 200-bed hotel-motel complex to that of a three-bedroom suburban dwelling letting out one or two rooms?"

Mr Sullivan said he paid tax on his income, and was more than happy to do so.

However the proposed rates increase was "just an extra tax at local government level for providing absolutely nothing".

"Hotel-motel operators should focus their energy on adapting and evolving with the market, rather than enlisting local government to stifle the increased competition by introducing an unwieldy and draconian tax regime."

Mr Sullivan said yesterday he would not mind paying some sort of fee towards city marketing, "as long as I know what that fee is for".

Dunedin Airbnb operator Christine Hall said she was "flabbergasted to hear people say operators did not contribute to Dunedin, or pay their fair share".

Ms Hall said she had a spare room in her house on Airbnb, and looked after properties for other operators who lived out of town.

She paid taxes like any other small business.

She was a "huge supporter" of Dunedin, and promoted city activities to guests when they stayed.

Asked whether Airbnb should pay towards city marketing that attracted visitors, Ms Hall said  someone could live in her house and pay rent, and there would be no issue.

"But because I’ve decided to do this, they’ve decided that I should pay commercial rates."

Queenstown resident Mary Christensen, who takes guests in rooms in her house and is about to release a book on providing online accommodation, said some sort of local government action to collect more rates from operators was "inevitable".

She had researched the issue in cities around the world, and found every major high density area or holiday area had introduced regulations.

Queenstown has rules for such activity, and is in the process of changing them at the moment, for instance lowering the number of days rooms are let to visitors before a resource consent is required.

Ms Christensen said Airbnb hosts were running a business, so they should run it like a business. Her property had higher rates, and "the sky didn’t fall in".

Ms Christensen also said Airbnb "recognised a need that the tired motel-hotel model didn’t respond to fast enough".

Worldwide the industry was "frantically" investing in various online models.

"If I owned a motel, I would actually be listing some of my rooms on booking sites."

david.loughrey@odt.co.nz