Airbnb-style providers at odds with hospitality industry as regulation considered

Tuesday, 3 March 2020

Short-term accommodation providers and the Hospitality Industry are at logger heads over their views on how the Christchurch City Council should regulate the industry.

Airbnb-style providers say they play a vital role in boosting tourism in Christchurch, yet the hospitality industry is adamant short-term rentals are killing the motel sector and negatively affecting the community.

But there is one aspect they do all agree on: the need for Government regulation of the short-term accommodation sector.

Fyffe on Riccarton owner Rod Gray wants Airbnb and Bookabach-type operators to comply with the same rules imposed on motels.

The Christchurch City Council is looking at how it can regulate the industry and has asked for feedback on options that range from allowing whole home listings everywhere to putting restrictions in some areas and not others. Another option is to limit the number of days a home can be listed for.

More than 425 people and organisations sent their views to the council and it will take those into account before deciding on a preferred option, which could lead to a change of the planning rules.

Claire Mackintosh says she does not make enough money to abide by the same rules as motels.

Airbnb has had a huge impact on the accommodation sector in New Zealand. (Video first published in February 2020)

](https://www.stuff.co.nz/the-press/news/119146199/motel-owners-struggle-to-compete-with-airbnb)* Outrage at plans to 'commercialise' housing in affluent Christchurch suburb

* Christchurch moteliers call for urgent regulation of Airbnb-style accommodation

* Council considers regulating Airbnb-style operators in Christchurch

* Christchurch Airbnb-type operators could face $1000 bill**

Airbnb and Bookabach are both advocating for the council to remove all restrictions on short-term accommodation and treat it as a residential activity.

In its submission, Airbnb said the council needed to make the rules 'more modern, clear and fit-for-purpose'. The rules also needed to protect people's choice to 'responsibly and respectfully' share their homes, Airbnb Australia and New Zealand head of public policy Derek Nolan said.

Bob Pringle, the owner of Comfort Inn Riccarton, is angry Airbnb operators can operate with virtually no regulation, but owners of hotels have to comply with myriad laws and pay commercial rates.

About 254,000 guests had stayed in Airbnb homes in the past 12 months and they spent $53 million, supported 360 jobs and contributed $36m to the gross regional product, he said.

'Airbnb's community is an important contributor to the local economy.'

Bookabach government and corporate affairs director Eacham Curry said short-term accommodation allowed visitors to stay in areas not serviced by motels and spend money at a more diverse range of local businesses.

'This has the effect of opening up competition and thereby choice. Families, rather than commercial providers, have the opportunity to reap direct benefit from tourism to their local area.'

Hospitality New Zealand's submission said the Christchurch commercial accommodation sector was in crisis and the effects of competing against an unregulated home-share industry, coupled with the impact of coronavirus, could spell the end for smaller scale, family-owned and operated commercial providers.

Under the District Plan, owners in most residential zones need a resource consent to rent out their entire properties as short-term accommodation, but the law is not monitored or enforced. The council has conservatively estimated about 1600 homes are listed on various home-share websites without the necessary consent. The council has previously said it did not have the staff need to track down the unconsented providers.

HNZ, which has 300 members in Christchurch, said the council could easily and quickly identify the properties by using geospatial technology. It wants the council to enforce the existing rules in the District Plan.

'If a not-for-profit organisation like Hospitality NZ can afford to purchase verified geospatial data, arguments as to the cost or accuracy of available information are shown to be misleading or designed to deflect from mandated responsibility.'

Data provided by HNZ showed there were 2112 short-term accommodation listings in a residential zone in Christchurch and they generated $28m in revenue for 1502 operators, or an average $18,500 each.

'Our members have rights and form an important part of the community. They have invested in commercial businesses and abide by a multitude of compliance regulations. They do not deserve to be less valued in the community than individuals who are either deliberately or unintentionally avoiding compliance with existing rules.'

Despite their differing views, all three organisations want the Government to take the lead on the issue and regulate the industry nationally.

Airbnb and Bookabach say the Government needs to set up a nationwide registration system and a mandatory and enforceable code of conduct for owners, managers and guests.