Mr Martin is the chief executive of the Tourism Industry Council of Tasmania and has welcomed news of a Legislative Council inquiry.

The inquiry was announced by Launceston MLC Rosemary Armitage to investigate the impact Airbnb has had on Tasmania’s housing crush.

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“Airbnb is not the problem; for 30-40 years Tasmanians have been putting out sandwich boards to advertise their properties for visitor accommodation, Airbnb is just the same as this,” he said.

“But the government changes are a dysfunctional system.”

A government spokesman disputed the claims.

“We believe our regulations deliver a contemporary, pragmatic and balanced approach to the sharing economy,” he said.

He said there was “no doubt” Tasmania’s booming economy had resulted in more people choosing Tasmania as a place to live, work and raise a family.

However, it had resulted in real challenges for Tasmanians on low incomes seeking to buy or rent a house.

“That’s why we are working hard to deliver a range of short, medium and long term solutions to ensure every Tasmanian has access to housing they can afford.”

The spokesman said the government would work constructively with the Legislative Council with its inquiry.

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said he didn’t believe increased regulation on the sharing economy would solve the issue.

“There is no doubt it [Airbnb] has had an impact, but I don’t think more regulation is the answer,” Mr Bailey said.

He said he believed the housing stress was an “unintended consequence” of the sharing economy.

However, he said both Uber and Airbnb, who have set up in Tasmania since the legislation changes, had described the policy as “progressive.”

A lack of hotel stock in Hobart and Launceston could also have contributed to the increase in Airbnb stock.

“The market will settle as the new hotel stock comes online,” Mr Bailey said.

He said he believed it was a timing issue, rather than any reduction in regulation or policy changes.

Both the TICT and the TCCI said they would participate in the inquiry and make submissions.