Steve Ball, spokesman for local hotels, says Airbnb should be subject to more stringent regulation. Cody MacKay, Centretown News The Ottawa Gatineau Hotel Association is calling on the City of Ottawa to regulate short-term Airbnb renters.
It’s just the latest in a series of attempts to rein in the local sharing economy by establishing clearer rules to govern online companies.
OGHA president Steve Ball said the goal of enforcing these rules would be to improve security and enjoyment for visitors to the capital.
“A real worry we have is over taxation and health and safety regulations,” said Ball. “Our industry is heavily regulated, for good reason, to ensure that guests experience a city in the best light.”
Ball is concerned that rooms on Airbnb aren’t following the proper health codes or fire codes, potentially putting the lives of guests at risk.
Airbnb facilitates a marketplace in which people rent out condos, houses or rooms in their home to visitors — generally for a much lower rate than hotels can offer.
Some Airbnb users have used the website to run what amounts to a private hotel business, purchasing properties for the sole purpose of renting them out to guests.
When Airbnb began operating in Ottawa in 2013, the OGHA said it would wait to see how the new business model would work before considering the issue of regulation.
Now, three years later, Ball’s organization, which represents 51 hotels in the region, said greater regulation in the hotel business is about fairness, and that zoning and safety regulations should apply equally to the entire industry.
Ball also said his association would like to see the city put a licensing strategy in place in which platforms such as Airbnb could only advertise hosts who’ve obtained a proper business licence. He also thinks owners should have to live in the units they rent and that a 30-day cap on visitors’ stays should apply.
Ball emphasized that these rules, if properly enforced, would not necessarily create a major burden on hosts.
He’s also quick to point out that hotel operators, if given the choice, would gladly forgo the extra costs associated with health and safety regulations.
“If that’s the new norm because of the Internet, I think the hotel industry would love to not have to honour any of those obligations,” said Ball. “(They’d) be able to reduce their rate as well, but I don’t imagine that’s ever going to happen.”
Many Airbnb hosts in the area do not support Ball’s position.
“My husband and I have been personally hurt by the hotel lobby and it’s overreaching,” said Ruba, an Airbnb host from Ottawa who asked that only her first name be used to protect her business. “We were threatened with a cease and desist order to remove one of our properties from Airbnb.”
Ruba said the regulations are just a way to squeeze small business owners out. She said profit margins for Airbnb hosts are minimal and that added fees would be a reason for many hosts to either shut down or start operating illegally.
Meanwhile, Meghan Machado, a frequent Airbnb user and a resident of Centretown, said the proposed changes appear both good and bad.
“I’ve had bad experiences, so I’m always a bit skeptical when I’m staying in an Airbnb as opposed to when I stay in hotels,” said Machado.
“I think these rules could help me feel more safe.”
Machado said she’s been a loyal customer of Airbnb because of the high accessibility and low prices. She said the possible increase in rates could prevent her from using the website’s services in the future.
“The reason I find Airbnb so great is mainly because it’s cheap,” she said. “If the prices get too high, I’d rather just go to a hotel.”
This wouldn’t be the first time City Hall has weighed in on controversial practices in the sharing economy. The city recently legalized the ride-sharing service Uber, despite months of protests from taxi drivers and several rounds of stakeholder consultations.
City council decided not to put in place many recommendations from the taxi industry, including such requirements as having security cameras in cars and performing strict background checks on drivers.
Taxi companies ultimately had to offer more to their customers once the city legalized competition in the industry, said Hanif Patni, CEO of Coventry Connections, Ottawa’s largest taxi operator.
After council voted to legalize Uber, Patni said he would welcome competition, so long as all companies were made to play by the same rules.
“We are not resisting (competition), we recognize that there should be competition… there should be alternative services,” Patni said.
Read the full story at centretownnews.ca
An important difference between the hotel and taxi industries is the limited number of taxi licence plates.
Taxi companies argue limiting the number of plates and selling them at about $200,000 a piece prevents the market from flooding. But it also means there are times when there are not enough taxis on the streets.
This, of course, is where Uber saw an opportunity – much like Airbnb.
A number of Canadian cities have begun to move toward greater regulation for Airbnb.
In Toronto, city staff are set to report on proposed regulations for room-sharing sites by early 2017. In Vancouver, officials are debating only allowing rentals of less than 30 days in houses that are principal residences.
Generally, Airbnb supports efforts for greater regulation, the company said.
“Airbnb is committed to working with cities across Canada, including Ottawa, to develop smart, easy-to-follow rules that support home sharing,” said Airbnb spokesperson, Alexandra Dagg in a written statement.
“We believe in paying our fair share. We have agreements in more than 200 jurisdictions,” said Dagg. “Next year Ottawa will host Canada’s 150th anniversary, and with most hotels already booked, we believe Airbnb can play an important role in helping the city deal with an influx of tourists during this large-scale, high-profile event.”