Airbnb faces crackdown to stop ‘harmful’ tourism surge

‘The damage is already done’

SHORT-TERM letting service Airbnb is facing a crackdown amid fears it risks a ‘hollowing out’ of communities and could spark a backlash against tourists.

A study has suggested owners using it to let out their properties could be restricted to doing so for a maximum of 90 days per year and be forced to register with their local council.

The Collaborative Economy Report, published yesterday, was produced by an expert advisory panel set up by the Scottish Government to investigate the online provision of services and goods. The panel is made up of stakeholders including representatives from taxi-sharing app Uber and ‘peer-to-peer’ lettings firm Airbnb.

There are 21,900 Scots properties listed on Airbnb, more than 40 per cent of them in Edinburgh. Average annual earnings for hosts is around £4,000.

In the year to March 2017, 802,000 stayed in Scottish properties listed on the site.

But critics say the rising number of people renting out space in their homes, particularly in the capital, is leading to an influx of tourists in previously quieter areas.

The panel said that while there is a ‘delicate balance to strike in preserving the fabric of communities and accommodating tourists’ there is no desire to see a ‘hollowing out of communities in cities, or a growing rise in aggression towards tourists’. It suggested that hosts could be forced to notify their local council that they are renting out rooms – even for a short time.

David Black, a founding memadded: ber of the Old Town Association in Edinburgh, said the rise of ‘low grade’ tourism had led to the city ‘becoming the Benidorm of the north, when it should be the Athens of the north’. He ‘I think the damage is already done... they have to stop the sale of properties to those who will use them solely for the purpose of Airbnb.’

According to the report, local authorities and the Scottish Government could ‘experiment’ with regulations such as a 90day limit on property lettings.

Hosts who fail to comply with the rules could be forced to pay non-domestic rates rather than council tax.

A spokesman for Airbnb said: ‘While Airbnb accounts for just 5 per cent of visitors to Scotland, they boost the national economy by £1million a day and put money in the pockets of local families.

‘We are pleased to be working with the Government on clear home-sharing rules, so more Scots can benefit directly from innovative forms of tourism.’

Economy Secretary Keith Brown said ministers will consider the report. He added: ‘As the collaborative economy grows, it is becoming clearer that we need to ensure it works for the good of consumers and our wider economy, and that unscrupulous elements are not able to exploit the system.’