Australia’s leading hoteliers are urging the federal government to impose stricter regulations on short-term rental platforms like Airbnb and Stayz, including hefty fees and a cap on leasing properties for no more than three months annually. In a submission to the government’s budget preparation process, Accommodation Australia, which represents major global operators such as Marriott International, Hilton, and InterContinental Hotels, warned that the rise of professionalized short-term rentals is exacerbating the nation’s housing affordability and accessibility crisis.
Accommodation Australia CEO James Goodwin highlighted concerns over investors purchasing properties solely for holiday rentals, reducing the availability of long-term housing for workers and residents. The organization is advocating for a national registration scheme and commercial accommodation licenses for properties leased beyond 90 days, similar to requirements for hotels and motels.
The debate is particularly heated in Byron Bay, where the local council has implemented a 60-day cap on short-term rentals. Michael Skinner, owner of the luxury beachfront hotel Elements of Byron, supports a national approach, arguing that local councils alone cannot address the issue. He noted that the lack of affordable housing is deterring both potential residents and skilled workers from settling in the area.
However, Sharmila Campbell, who operates a baby equipment hire business catering to Airbnb and Stayz guests, argues that short-term rentals are not the primary cause of housing shortages. She explained that many Byron Bay property owners use their homes as holiday rentals during peak periods, leaving them vacant for the rest of the year. Campbell also noted that reduced rental activity has forced her to cut staff, highlighting the economic impact of stricter regulations.
As the federal government considers these proposals, the clash between the hotel industry and short-term rental platforms underscores the broader challenges of balancing housing affordability, tourism, and local economic needs. The outcome could reshape Australia’s accommodation landscape, impacting property owners, businesses, and residents alike.
