Airbnb stopping major international hotel chains from investing in Cape Town

Luis

Luis

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Airbnb stopping major international hotel chains from investing in Cape Town

Cape Town mayor Geordin Hill-Lewis said that Airbnb's operating model in the Western Cape capital is directly impeding major investments from international hotel brands.

He said that some businesses using the platform were dodging rates and tariffs that would normally apply to major accommodation providers in Cape Town, and that a new bylaw would put a stop to this.
 
No, this is about the city losing money from legit hotels and b&bs using it to dodge taxes. There's no loss of investment from Airbnb. It looks like this mayor isn't going to make any better leader than the previous one.
 
And if hotels didn't charge stupid money AirBnB would be a thing. So frankly, meh!
 
I agree with CoCT. AirBnB is a business. If you are a business you pay business rates and taxes.

On the upside - you are also allowed to deduct what you pay in rates and taxes from your gross income for income tax purposes. Homeowners living in their homes can't deduct their rates and taxes.

If Airbnb owners pay residential rates, same as homeowners then effectively homeowners are disadvantaged because they will effectively pay more in total taxes.
 
Johand said:
I agree with CoCT. AirBnB is a business. If you are a business you pay business rates and taxes.

On the upside - you are also allowed to deduct what you pay in rates and taxes from your gross income for income tax purposes. Homeowners living in their homes can't deduct their rates and taxes.

If Airbnb owners pay residential rates, same as homeowners then effectively homeowners are disadvantaged because they will effectively pay more in total taxes.
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Residential rates are at extortion levels already.
 
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Swa said:
No, this is about the city losing money from legit hotels and b&bs using it to dodge taxes. There's no loss of investment from Airbnb. It looks like this mayor isn't going to make any better leader than the previous one.
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Airbnb anit investing ****.
The city is just taking heat from the public over their lack of legislation. All they are doing is justifying the fix by making some money.

Its fair Airbnb pay taxes like everyone else. The city has tried fixing the problem a few other ways but nothing has worked.
 
AirBnB works best when it is used as intended to enable people to earn an income by doing short term rentals of their primary properties. The problem is that businesses have effectively taken over the market by buying up residential properties and renting them out at scale like hotels. This bylaw should distinguish between these two types of hosts else it will kill the smaller players who offer a genuine alternative to staying in a hotel.

Same thing happened with Uber in SA btw.... Uber was meant as a way for people who already own cars to use them to generate some income. Now we have businesses buying fleets of cars and renting them out to uber drivers who try and make a living by doing it full time.
 
So the city of Capetown rather compromise 100 000 jobs vs a R350m hotel with approx 100 jobs. This does not add up. I do agree though that Airbnb need to be taxed appropriately but then quality of accommodation will drop and so too would jobs.
 
Swa said:
No, this is about the city losing money from legit hotels and b&bs using it to dodge taxes. There's no loss of investment from Airbnb. It looks like this mayor isn't going to make any better leader than the previous one.
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The world has moved on from hotels. Airbnb like Uber has been a disruptor in traditional business. We need to move on with the times. Besides, we now have better choices in accomdation
 
Johand said:
I agree with CoCT. AirBnB is a business. If you are a business you pay business rates and taxes.

On the upside - you are also allowed to deduct what you pay in rates and taxes from your gross income for income tax purposes. Homeowners living in their homes can't deduct their rates and taxes.

If Airbnb owners pay residential rates, same as homeowners then effectively homeowners are disadvantaged because they will effectively pay more in total taxes.
Click to expand...
That should be the end of the matter. It shouldn't need any more than that in terms of law.
 
Cape Town mayor Geordin Hill-Lewis said that Airbnb's operating model in the Western Cape capital is directly impeding major investments from international hotel brands.
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Slowly, a finger on the monkey paw curls.

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Yes, I agree that properties solely bought for the purpose of an AirBnB should be taxed as a business along with all the other levies associated with being in the tourism industry.
 
Adhvik said:
The world has moved on from hotels. Airbnb like Uber has been a disruptor in traditional business. We need to move on with the times. Besides, we now have better choices in accomdation
Click to expand...

It's questionable whether many actual jobs are being created from an expansion of AirBnBs. All people I know who run AirBnBs manage the properties themselves. They do use temporary cleaning services after each guest leaves but that's about it.
 
People have more of a right to earn an income than the government does to stop them to increase its own income, end of discussion.
 
Johand said:
I agree with CoCT. AirBnB is a business. If you are a business you pay business rates and taxes.

On the upside - you are also allowed to deduct what you pay in rates and taxes from your gross income for income tax purposes. Homeowners living in their homes can't deduct their rates and taxes.

If Airbnb owners pay residential rates, same as homeowners then effectively homeowners are disadvantaged because they will effectively pay more in total taxes.
Click to expand...
There's Airbnb as a business and then there's individuals using it. Don't confuse the two. Airbnb is intended as servicing the missing middle where people have spare property to lease out but can't run it as a formal business and can't have full time occupants.

Sure if it's a real b&b or hotel using it then what's lacking here is enforcement. But if it's someone renting out a home the same as a traditional holiday home which doesn't incur these taxes btw there shouldn't be any changes. It seems what's really happening here is they've identified an income stream they can milk.

Vox Populi Vox Dei said:
It's questionable whether many actual jobs are being created from an expansion of AirBnBs. All people I know who run AirBnBs manage the properties themselves. They do use temporary cleaning services after each guest leaves but that's about it.
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Self-employment. For all this government talks about entrepreneurship and helping people be self sustaining they sure keep adding a lot of red tape.
 
Successful large international chains do not invest in countries or cities run by Socialist Communists. Easy as that. Getting rid of Air BnB will not attract more foreign investments. The problem with the new DA leadership are that they do not understand basic economics. They, like the ANC only know how to take.
 
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