Airbnb’s Growth Worries Mexico Hoteliers

Hoteliers in Mexico are growing concerned about Airbnb’s soaring popularity.

According to a report in Mexico News Daily, there are almost as many Airbnb properties as there are hotel rooms in the Riviera Nayarit, and hotel operators are beginning to raise the alarm and would like to see a level playing field.

“...we calculate that there are just as many. In other words, the same supply in different conditions, without regulation. Yes, hoteliers are worried,” said Richard Zarkin, public relations manager at the Riviera Nayarit Convention and Visitors Bureau told Mexico News Daily.

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Zarkin noted that the government was working on regulating the rental giant.

One of the ways in which the playing field could be leveled is that apartment owners pay residential rates for water and power while hotels are charged commercial rates. This is something that needs to be fixed Zarkin noted.

“We think that it’s unfair competition. Airbnb is a platform that benefits from [tourism] promotion whose budget comes from the accommodation tax. There should be responsibility. Airbnb should pay the relevant taxes,” he said.

Some states already have regulations in place and Airbnb pays relevant taxes to operate in Guerrero and Mexico City. The report notes that federal Tourism Secretary Miguel Torruco is planning to propose a nationwide regulatory framework for online hospitality services, an initiative that is supported by Riviera Nayarit hoteliers.

Airbnb has run into similar headwinds in the United States.

Recently, New York City proposed new rules to regulate home-sharing platforms preventing affordable housing and rent-stabilized units from being used as rentals on Airbnb and HomeAway.

In Los Angeles, the L.A. City Council also introduced rules that would ensure residents access to more affordable housing by limiting Airbnb rentals.

Hawaii also recently cracked down on illegal vacation rentals, echoing a ruling in California that holds home-sharing sites liable for unregistered rentals.