The Southland Times

Total disruption

Airbnb: a blessing or a curse?

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‘‘Families/workers can’t get rental houses and are even being kicked out so owners can put these houses on the shortterm market.’’ Nigel Humphries Hospitalit­y NZ accommodat­ion advisory council chairman

Some say the rise of Airbnb has disrupted society, others say it compliment­s the tourism industry. Mary-Jo Tohill looks at the impact it has had on the south.

The idea behind Airbnb started off simply enough. Those with a spare room could rent it out for a night or two and earn some extra cash.

But now it has worldwide domination of accommodat­ion providers offering up en suite rooms, granny flats or even whole houses.

Airbnb has followed in the footsteps of the likes of Uber – taking something that already exists and simplifyin­g it.

But some would argue Airbnb is now far removed from its core values of just a room for rent, and is being used as a substitute for hotels and contributi­ng to a housing shortage.

While some may say the service is a disruption, others believe it is complement­ing the tourism industry.

Hospitalit­y NZ accommodat­ion advisory council chairman Nigel Humphries has been a motelier in Te Anau for 20 years. There were 294 Airbnb listings for the town last

week.

He says Airbnb is not so much a disrupter to the industry as a disrupter to society.

‘‘Families/workers can’t get rental houses and are even being kicked out so owners can put these houses on the short-term market.

‘‘This affects employment and growth. If we can’t get staff, or provide accommodat­ion for staff, this is a worry for all employers.

‘‘Families have to leave town because they can’t get a rental; not good for anyone and not to mention how stressful this is for the families.’’

All of the accommodat­ion industry needs to be following the same rules and contributi­ng to the regional tourism levy, he says.

Airbnb guests make a significan­t contributi­on to New Zealand’s economy. A Deloittes reports states that in 2017, they earned $660 million in gross domestic product (GDP) and supported more than 6000 jobs. There were 578,000 stays, accounting for 1.5 million nights booked in New Zealand through Airbnb last year.

According to Kiwi company HomeLegal, BookaBach has more than 12,200 rentals and Airbnb has more than 15,000, with the owners declaring income.

In the past year, the number of Airbnb guests to Southland has increased by more than 80 per cent.

Data provided by Airbnb shows, as of July 1, there were more than 590 active Airbnb listings in Southland, with more than 34,500 nights booked in the past year and 53,000 guests hosted.

That represents an 84 per cent increase in inbound guests across 19,000 trips from the previous year.

Now Queenstown Lakes District Council is proposing a short-term peer to peer renting limit, which would introduce a 90-day-a-year cap in the centre of town.

Airbnb Australia-New Zealand public affairs manager Julian Crowley and Australasi­a regional manger Brent Thomas were in Queenstown last month to discuss the proposed change.

Crowley says the debate has gone to the extreme, from laissez faire (keep the industry free of government interventi­on) to some in the hotel industry wanting ‘‘to put the genie back inside the bottle’’.

Thomas says there is no need for that.

‘‘The fact of the matter is hotels in New Zealand are healthy and their future is as bright as ever. What’s more, many local traditiona­l hospitalit­y providers are joining our community.’’

Stats NZ data shows that 2017 was a record year for hotels in New Zealand, including Queenstown, where occupancy had increased to 79.5 per cent – an all-time annual high.

Thomas rejects the view that the service had moved away from its core values. ‘‘Airbnb spreads the benefits of tourism to the people and places that traditiona­lly missed out, like the suburbs and regions.’’

Wellington-based think-tank the New Zealand Institute of Economic Research (NZIER) works on projects that measure the impact of disruptive technology.

Chief executive Laurence Kubiak said what was interestin­g about Airbnb was the way it had redistribu­ted people.

‘‘Hotels are concentrat­ed into urban areas. But if you stay in Airbnb you could be anywhere, so the spatial distributi­on is quite different.’’

He says Airbnb has brought a partial, rather than total disruption. ‘‘There definitely has been some disruption. The fact that hotels are so concerned about it says something. But Airbnb is not a substitute for staying at a hotel, it’s more complement­ary – more of a partial disruption.’’

The market is quite different between a hotel user and an Airbnb user, he adds.

Hospitalit­y New Zealand Central Otago president Chris Buckley, of Queenstown, is not anti-Airbnb; in fact, it could complement commercial accommodat­ion at peak times.

‘‘But it does have knock-on effects such as visitors staying at home and cooking, rather than visiting locally owned restaurant­s and bars.’’

It’s definitely affecting his business and other bar/ restaurant­s operators, he says.

‘‘Ultimately, less staff will be employed to cover shifts and less money will be spent throughout the business and community.’’

Having entire houses available rather than just single rooms has changed the dynamics in neighbourh­oods, he says. Increased noise is one example.

Along with capping the number of nights homes can be rented to short-term visitors, Queenstown Lakes District Council is also looking at the number of people who can stay in accommodat­ion. ‘‘If it goes unchecked, I would expect it to have negative consequenc­es throughout the country.’’

Auckland-based Tech Futures Lab general manager Sarah Hindle, who teaches disruption innovation, says Airbnb is a classic example of a business platform that ‘‘cuts out the middle man’’ in a massive way.

That model has since been repeated in several industries. ‘‘We’re living in quite a different time than most of us have ever lived in.

‘‘Most of us have done life in quite a linear way but we now have all these factors and multiples and a speed of change that we’ve never seen before.’’

She does not think trying to regulate the industry is the answer. ‘‘Are we a country that looks at disruption as something we put the brakes on?

‘‘We do live in a time of disruption and I honestly don’t know where it’s going to take us. But it’s a great opportunit­y in society to decide what kind of world we want to live in.’’

‘‘It does have knockon effects such as visitors staying at home and cooking rather than visiting restaurant­s and bars.’’

Chris Buckley Hospitalit­y NZ Central Otago president

 ?? STUFF ?? Southland has seen an 84 per cent increase in the number of Airbnb hosts in the past year, with Te Anau feeling the pressure of a short-term rental crisis.
STUFF Southland has seen an 84 per cent increase in the number of Airbnb hosts in the past year, with Te Anau feeling the pressure of a short-term rental crisis.

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