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Calls to 'crack down' on unregulated accommodation

Australia's hotel association continues to urge the government to take actions against unregulated short-term accommodation providers that could be hurting Sydney's hoteliers.

Australia’s hotel association continues to urge the government to take actions against unregulated short-term accommodation providers that could be hurting Sydney’s hoteliers.

According to the Tourism Accommodation Association (TAA), there are some 10,000 rooms and apartments available in Sydney operating as commercial businesses without any permits.

These include apartments and rooms sold on sites such as Airbnb, which is particularly popular amongst travellers looking to stay in the heart of a city while saving a couple of dollars.

The Airbnb Inc. application and logo are displayed on an Apple Inc. iPhone and iPad in this arranged photograph in Washington, D.C., U.S., on Friday, March 21, 2014. Airbnb Inc. is raising money from investors including TPG Capital in a financing round that would value the room-sharing service at more than $10 billion, said people with knowledge of the deal. Photographer: Andrew Harrer/Bloomberg via Getty Images

TAA said the ‘spiralling increase’ in these unregulated short-term options are disrupting the playing field by not only making it harder for local hoteliers to sell rooms but potentially scaring off new investors.

“They don’t pay the appropriate council charges, there is a question about taxation, they often do not meet safety requirements and they contribute nothing to tourism promotion.”

Carol Giuseppi, TAA CEO

Giuseppi continued, saying these unregulated properties are ‘not good for future investors’ or current investors such as Singapore’s Pontiac Land Group who will open a new 240-luxury hotel in the city by 2021.

“The new hotels will play a crucial role in supporting the launch next year of the new International Convention Centre and will help elevate Sydney into one of the world’s greatest business and tourism destinations,” she said.

Airbnb 2

“However, the cost of developing hotels in Sydney is extremely high and needs to be based on a sustainable demand-led model if we are to continue to attract future investment.

“Investors in Sydney need to be confident that their hotel properties will be able to operate on a level playing field.”

Meanwhile, Pontiac Land Group’s new Sydney property will be developed on Sydney’s Bridge Street.

Around $300 million will be invested in transforming two heritage sandstone buildings into a five-star hotel. The property expected for completion by 2021.

Do you think the government should push for regulation?