Tasmania’s IT industry has lashed out at a proposal by the state government to place a cap on unlicenced Airbnb rentals, arguing it would overregulate the sharing economy and reduce competitiveness.
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The state government is proposing a 42-day cap on unlicensed short term rentals and a restriction of rental space to less than 160 square metres, meaning anything longer would require a permit from council.
Airbnb gave evidence this week at the Tasmanian Planning Commission, arguing the draft proposal would impact on five percent of Tasmania’s annual tourism.
Startup Tasmania co-founder and digital strategist Polly McGee said regulation used in pubs and hotels was not necessarily effective for the peer-based platform.
“I think it’s going to be very hard to police and certainly the council and state government don’t have the resources to be going and checking on the 1700 people who are doing Airbnb’s,” she said.
She said the two-speed economy had its own set of regulations, and the state government’s proposal would undermine this.
“We’re trying to be part of a global economy, we’re trying to build Tasmania’s presence in that, therefore we are wholly supportive of entrepreneurial systems that allow that to happen,” she said.
“If the property is unacceptable for the users, then they will shut that property down on Airbnb by giving it bad ratings that’s how it works, it’s a peer-based world.”
TasICT chief executive officer William Kestin said the proposed measures were some of the most restrictive in the country.
Airbnb estimates that in the 12 months to May, there were 118,000 Airbnb guests in Tasmania and believes 48 per cent of those would have been affected by a 42-day cap.
Premier Will Hodgman said the draft proposal was still going through a consultation process, and the concept was simply a starting point.
Opposition ICT spokeswoman Madeleine Ogilvie said the Hodgman Government’s proposal would hinder the ability of Airbnb operators to compete both nationally and overseas.
Tasmanian Hospitality Association general manager Steve Old said it was only fair that Airbnb was regulated just like every other industry.
Tourism Industry Council Tasmania chief executive Luke Martin said the Planning Commission’s proposal would legitimise casual operators acting outside of the law.
“The alternative is they don’t do anything...and all that means is basically councils are going to be under pressure to essentially fine people,” he said.