Arnie Weissmann
Of all the disrupters that have entered the travel industry so far in the 21st century, none has been as disruptive -- and ubiquitous -- as Airbnb.
Hospitality companies that must adhere to strict local development guidelines and pay bed taxes have begged regulating jurisdictions to level the playing field by addressing unregulated vacation rentals. Communities that lost housing stock to Airbnb conversions have seen rents increase and the fabric of their neighborhoods thin. The residents of some cities blame the company for contributing to overtourism.
Municipalities, even countries, have responded. This year Spain will implement regulations that include requiring that a permit be obtained before a property can become a vacation home. Oahu and New York have banned stays of less than 30 days. Amsterdam capped the number of nights a host can rent to 30 per year.
Airbnb issues become more complicated for countries whose economies are tourism-dependent. This week was Caribbean Week, when tourism ministers and the heads of destination promotion bureaus descend on New York to raise awareness of their islands.
In a series of back-to-back-to-back-to-back interviews with representatives of Caribbean islands, I found that they each looked at Airbnb's presence differently.
Antigua and Barbuda was the most supportive of vacation rentals.
"They are good for us," said the country's tourism minister, Max Fernandez. "We have seen a plethora of interest, and that means that a lot of people are getting involved in the industry. If you don't have people from all strata involved in tourism, especially in terms of ownership, then it's not sustainable, and sustainability is the key."
To keep housing affordable as more properties convert to vacation rentals, Fernandez said the government is supporting a large-scale home-building initiative. "It's about creating a balance," he added.
Airbnb serves another supportive role, Fernandez believes. "In economic downturns, the high-end is less likely to be affected. But at the same time, we believe that short-term rental properties like Airbnb can offer the kind of mix to make it balance out," he said. "That's the way we are looking at it."
On Anguilla, vacation rentals are regulated for two reasons, tourism minister Cardigan Connor said. First, they are monitored to see if they meet required standards, and second, guest information is gathered to help keep track of where visitors are staying in case of a hurricane. "Anything that happens on the island is a responsibility of government," Connor said. "And as long as proprietors of the Airbnb properties understand that, then they know we're protecting each other as well as guests."
St. Martin -- the French side of the island -- creates its balance by actively looking for unregistered vacation rentals but in some instances allowing them to operate in neighborhoods where they're not supposed to be.
"We need 3,500 rooms," said St. Martin tourism minister Valerie Damaseau. "We see that there's a lot of purchasing of villas and vacation rental homes. They're listed [on Airbnb's platform] but are registered to us as their personal home. We know that some are not fully paying their taxes.
"So we have several teams that visit these sites; they're just going to show up," she continued. "The situation exists, and we want to structure it. We don't want visitors who stay in these properties to say that they're not good, so we can assist the homeowner to make sure that the product is as renovated as possible and that it has the amenities that everyone is seeking."
Many of the St. Martin vacation rentals are in areas where they're forbidden to be, but Damaseau is not shutting them down.
"We're working on some text to try to regulate them," she said. "We need those rooms to bring [the island inventory] up to 3,500. We shut our eyes because those extra rooms have saved us over the years. We'll tighten the screws a little, but we need to find the right balance."
"Villas are a tricky one," said Turks and Caicos tourism minister Zhavargo Jolly. "It's a catch-22. We're a high-end luxury destination, but we get six or seven people staying in a villa because it's less expensive than six or seven hotel rooms. But then they can't afford the amenities that generate the [per person] revenue we expect. And they complain about the affordability of the island."
Paul Pennicook, CEO of Experience Turks & Caicos, added that it's one reason they are focusing on the travel trade, which doesn't typically attract the same clients as Airbnb.
"Also, with the Airbnb scenario, we're not ever sure that everyone is paying their fair share of taxes. But I had a discussion with Airbnb and got a commitment that they were willing to collect taxes for us," he said. "But they're not prepared to give us the details about who they collected the taxes from; they'll just send a lump sum. My attitude is: just take the money."