Airbnb needs a reality check
OPINION: Not so long ago I was lucky enough to do a road trip through Texas.
Texas is as good it gets if roadside Americana is your bag. My trip included the rattlesnake round-up in Snyder, the Buddy Holly memorial in Lubbock and, of course, the Cadillac Ranch, consisting of 12 finned Cadillacs half-buried in the ground, nosefirst.
While Texas is long on roadside attractions, it’s short on corners. So it’s easy to speed.
The Highway Patrol officer who pulled over my rental Dodge Challenger was a charming ambassador for the state of Texas. After showing surprising understanding of where New Zealand was and that we were pretty handy at rugby, the officer chose not to ticket me for doing
79mph (127kmh).
Instead he gave me a brochure and a sticker that looked like a highway speed sign with the words
‘‘70 – it’s not just a good idea, it’s the law’’.
I was still thinking about it when I heard about the travails that another American invention – Airbnb – is causing in New Zealand.
In just 10 years Airbnb has become the largest accommodation business in the world.
Here in godzone, it’s taken off like a robber’s dog. There are more than 27,000 local properties on the site, ranging from fold-out sofas in Ponsonby to palatial lakeside properties in Taupo and Queenstown.
And it’s Queenstown that is the site of the current conflict. The locals say Airbnb is ruining the town for everyone – tourists and locals alike.
According to a study by Infometrics, one in 10 dwellings in the Queenstown Lakes District is listed on Airbnb; that’s 2000 dwellings.
The most obvious is the impact it’s had on house prices, removing a large slice of supply to create a demand-fuelled surge in prices.
There’s also allegations about a lack of a level playing field, whereby absentee property owners don’t contribute to the tourism overheads. Currently only those registered as commercial businesses pay the rates-based levy.
Last week the Queenstown Lakes District Council tabled a proposal to restrict short-term rentals of houses in low and medium-density residential zones to 28 days a year.
Airbnb has gone a bit thermonuclear in its response, calling in its Australasian head of spin doctoring.
He’s taken some pretty aggressive tilts towards the Queenstown council, and identifying the ‘‘nanny state’’ attitude as the problem.
This despite the fact Airbnb have met the community halfway in countries like France.
I reckon poking the borax at the Government here in godzone is a risky position for Airbnb.
As long as you enjoy commercial revenue in a community you have compliance obligations, including those relating to tax, health and safety.
I’d be willing to bet a cold beer on a hot day that there may not be full tax compliance by all the Airbnb operators in New Zealand, or even just in Queenstown.
So a targeted Inland Revenue audit could make things a bit awkward for Airbnb.
Under the Health and Safety at Work Regulations those property owners have widespread duties and obligations relating to the locals they employ in cleaning and servicing properties. Again, I’m not sure they all would chin the bar of compliance, due diligence and record-keeping.
And the recent Airbnb fire in Christchurch which put six people into hospital also raises questions about the provisioning of fire alarms and fire exits.
Which takes me back to my Texas Highway Patrol experience.
Paying your share for infrastructure, and making sure people are safe and healthy are not just good ideas; they’re also the law.
And Airbnb may not want to push too hard on this one.
As long as you enjoy commercial revenue in a community you have compliance obligations.
❚ Mike ‘‘MOD’’ O’Donnell is an e-commerce manager and professional director. His Twitter handle is @modsta and he’d love to be a shareholder in Airbnb.