Airbnb battle – “Don’t kill small businesses to protect large hotel groups”

Former FNB CEO and tech investor Michael Jordaan has urged Tourism Minister Derek Hanekom to think carefully before taking on Airbnb.

Jordaan said Airbnb is the best thing that has happened to the South African tourism industry in a long time.

“Please don’t kill small businesses to protect large hotel groups,” Jordaan said on Twitter.

These comments come amidst major players in the hospitality industry calling on the government to regulate Airbnb.

Concerns from hotel groups

Airbnb has seen impressive growth in South Africa, and a lot of this growth came at the expense of established bed-and-breakfasts and hotels.

These establishments have expressed concerned that the unregistered accommodation establishments listed on Airbnb are taking business away from them.

The Federated Hospitality Association of SA (Fedhasa) called for government to crack down on Airbnb, arguing that they should face the same regulation as the official tourism sector.

According to the registered establishments, Airbnb hosts are not regulated and can therefore undercut them because they have lower overheads.

Tourism Amendment Bill

The government has now acted on these industry calls through the Tourism Amendment Bill, which was gazetted on Friday 12 April.

Through this bill, ‘short-term home rentals’ will now be legislated under the Tourism Act in South Africa.

Under the amendments, the minister of tourism will have the power to specify certain ‘thresholds’ when it comes to Airbnb in South Africa.

These thresholds can include limits on the number of nights that a guest can stay or even how much income an Airbnb host earns.

According to the department, this would ensure that “everyone gets their fair share” and that both private users of Airbnb and hotel groups get to enjoy a shared economy.

The department also plans to give more oversight to local government when it comes to zoning and where an Airbnb may be located.

Airbnb responds

Airbnb said it supports clear and progressive rules that support the sustainable growth of home sharing.

“We are having productive discussions with the government, based on our experience working with more than 500 governments around the world,” an Airbnb spokesperson said.

These discussions include measures to help Airbnb “hosts to share their homes, follow the rules and pay their fair share of tax”.

Airbnb said it is growing because it reflects the way people live, work, and travel today.

Now read: Airbnb is killing the tourism industry in South Africa – Hotels

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Airbnb battle – “Don’t kill small businesses to protect large hotel groups”