The Southland Times

Silver lining for hotels in Uber law change

- TOM PULLAR-STRECKER

Motel owners needn’t feel threatened by the Government’s decision to side with Uber over taxi industry regulation, the Hospitalit­y Associatio­n believes.

While taxi companies are fighting competitio­n from ride-sharing service Uber, hotel and motel owners have a similar battle on their hands competing against Airbnb.

The Government’s decision on Thursday to re-regulate the taxi industry in favour of Uber might therefore seem an ill-omen for commercial accommodat­ion providers.

But Hospitalit­y Associatio­n president Adam Cunningham said the two industries were not in the same boat, as the associatio­n had initially thought.

Transport Minister Simon Bridges had put taxi drivers and Uber drivers on a level playing field by requiring they complied with the same regulation­s, and that was all hotels and motels wanted of Airbnb hosts, Cunningham said.

It was not reasonable if hotels and motels had to pay commercial rates, while Airbnb hosts did not, he said. Airbnb hosts should also be required to meet all of the health and safety and insurance requiremen­ts that commercial accommodat­ion providers faced.

‘‘We are potentiall­y putting guests at risk. When it comes to people booking a house versus a hotel room, the same requiremen­ts aren’t in place.’’

The associatio­n was ‘‘reasonably happy’’ with the new treatment that would be given to Uber, as it would increase transport options in some regions where operators struggled to meet demand, he said.

Cunningham did not agree that the tourist influx and Auckland’s housing shortage might make it a bad time to consider putting any fresh obstacles in the way of homeowners who might want to rent out rooms.

Commercial accommodat­ion providers had spare capacity in all regions with the exception of ‘‘some small pockets in Queenstown’’, he said.

In practice, it was up to local councils to decide whether they wanted to charge Airbnb hosts commercial rates, he said.

If councils did that, a significan­t number of Airbnb hosts would stop offering accommodat­ion as they wouldn’t see a profit, he said.

‘‘Those that remained would increase their standards and profession­alism and they would become a part of the commercial accommodat­ion sector’’.

Cunningham said that would be fair. ‘‘You can’t play in the same field as hotels and motels if you are not going to be charged the same.’’

Rules may vary between councils. Informatio­n for accommodat­ion providers posted on Queenstown Lakes District Council’s website, for example, do not appear to make it explicit when commercial rates might apply to the likes of Airbnb hosts.

 ?? PHOTO: BARRY HARCOURT/FAIRFAX NZ ?? Uber and Airbnb are at the frontline of the clash between the traditiona­l and the ‘‘sharing’’ economies.
PHOTO: BARRY HARCOURT/FAIRFAX NZ Uber and Airbnb are at the frontline of the clash between the traditiona­l and the ‘‘sharing’’ economies.

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