Most of us simply want what Quebec is proposing:
The same rules for everyone.
The private and public sectors of the hotel industry agree there should be regulatory legislation to regulate the proliferation of non-hotel accommodations which visitors to the country can now avail of through the online booking websites such as Airbnb.
Airbnb is a website for people to list, find, and rent lodging. It has over 1,500,000 listings in 34,000 cities and 190 countries. It allows travelers, especially those traveling on a limited budget, to book their accommodation online.
The Airbnb website at https://www.airbnb.com/s/
A business daily recently reported Airbnb, Inc. is projecting Philippine home listings and clients to grow 300% by the end of 2015 and by the same margin in 2016 by expanding outside Metro Manila. Airbnb Ph has partnered with Smart Communications, Inc. offering discounts for Smart subscribers, PLDT HOME subscribers and clients of PLDT Alpha Enterprise and PLDT Smart SME Nation.
Limketkai Luxe Hotel GM Jerome de la Fuenta queries about the new DOT Accreditation & Star Rating System for Hotels during the TCP Mindanao Reg’l Meeting held 20 Oct 2015 at VIP Hotel, Cagayan de Oro CIty
The issue of unfair competition from Airbnb hosts to accredited hotels and similar establishments was raised during the Mindanao Regional Meeting of the Tourism Congress Philippines (TCP) held Thursday, 29 Oct 2015 at the VIP Hotel in Cagayan de Oro City.
According to Rosanna Tuason-Fores, TCP president, the organization is the private sector consultative body created by Republic Act 9593 (Tourism Act of 2009) and mandated to assist government in the development, implementation, and coordination of Philippine tourism policy.
“It is composed of duly accredited tourism enterprises covering the accommodation, travel and tours, meetings, conventions, exhibitions and events services and facilities sectors, tourism and estate development, management services and other accredited tourism enterprises,” she added.
Maria Rica C. Bueno, Director, Office of Tourism Standards & Regulations, Department of Tourism said the issue has already been referred to the DOT by the Phil. Hotel Owners Association, Inc. (PHOA).
“At this point in time we don’t have a policy or a program yet, on how to address Airbnb,” Bueno said. “While we are in the process of processing and developing accommodation standards, we will get insights from the industry and our consultants on how we will address this issue. They are already here and most of them are condominiums.”
Previously known as The Phil. Hotel Federation Inc., the PHOA’s primary objective is to bring together those in the accommodation industry (hotels, resorts, tourist inns, pension houses, and serviced apartments), and organize them to protect and promote their common interest and concerns.
Arturo P. Boncato Jr., DOT assistant secretary for Mindanao, said the present thinking here and abroad is leaning towards regulating listed host establishments in Airbnb and similar online booking websites.
CDO Mayor Oscar Moreno in huddle with TCP VP-Mindanao Eileen San Juan (left), DOT-X RD Butch Chan & DOT Dir. for Tourism Standards & Regulations Ma. Rica C. Bueno (CIO Photo)
“The local government of Quebec, Canada has filed a bill requiring all Airbnb establishments to pay the exact same taxes as regular hotels. This has already also been experienced in many parts of the world and I believe that should be the direction in dealing this new way of booking and travel which is similar to Uber itself in terms of getting their franchises paid and taxes, etc.,” Boncato said.
Cynthia R. Mamon, TCP trustee, said the hotel industry is apprehensive of Airbnb hosted establishments because they are not accredited with the DOT and have no standards to comply with when dealing with guests and accommodations.
“One bag egg, whether accredited or not, will spoil the whole basket,” Mamon said. “If we cannot police our own ranks, and encourage everyone to register with the DOT, how can we police the foreigners who come here and own our national landscapes and hospitality establishments?”
In his column The Hotel Mogel dated 27 October 2015, Larry Mogelonsky, founder, LMA Communications Inc. of Toronto, Canada described how the Canadian province of Quebec filed Bill 67, which would require Airbnb hosts “to comply with the same taxes paid by licensed hotel properties.”
Quebec Tourism Minister Dominique Vien said in a press conference that “everyone is going to play on the same rink” and cited the huge amount of tax that would be recouped in provincial coffers that the bill’s passage would impose on Airbnb operators (and their guests as a pass-on expense). “It is inequitable, unsafe and just not fair.”
Mogelonsky said “hotels go through a literal ton of red tape to obey the rules of the road, and it’s unjust that Airbnb has been able to circumnavigate these stipulations which are in place to first and foremost protect guests from harm.”
“These fiercely independent properties are regulated by Quebec law as well as through licenses which cover safety, health and other related matters. These B&B owners also pay commercial property tax, contribute to local tourism contributions (in essence, another tax), and provincial and federal sales taxes. In a nutshell, these are good corporate citizens and true hoteliers, admittedly on a smaller scale than the Fairmont.”
“Most of us simply want what Quebec is proposing: The same rules for everyone.”
Vien vowed last 29 April 2015 that the province will crack down on rentals through housing brokers such as Airbnb and subject Airbnb hosts and guests to the same rules hotels are subjected to.
Other local governments in Europe and the US have already legislated similar measures.
A 2011 New York State law prohibits renting residential units for less than 29 days, with some exceptions. In May 2013, a New York City judge penalized Airbnb user Nigel Warren with a $2,400 fine. In April 2015, Airbnb asked the state legislature for legalization in return for the collection of hotel taxes.
In January 2014, the Federal Court of Germany ruled that a transfer of residence to tourists is not covered by a permission to sublet. In this case, the tenant was previously warned by the landlords. A pending new case centers on the question, even if a termination without notice is possible if no explicit permission from the landlord is obtained.
In Airbnb’s home city of San Francisco itself, Airbnb hosting was illegal under most circumstances and Airbnb hosts had been fined by the city and received eviction notices from landlords. This changed in October 2014, when San Francisco Mayor Ed Lee signed a law legalizing short-term rentals in San Francisco.
Dubbed the “Airbnb Law” (as Airbnb was the most affected company), the law requires renters to register as hosts with the city, carry liability insurance and pay the city’s 14 percent hotel tax. According to a study commissioned by Airbnb itself, in fiscal year 2011-2012, Airbnb should have collected and remitted $1.9 million to the City of San Francisco, but have yet done so as of 2014.
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