The NSW Government says it will work closely with peer-to-peer sites, such as Airbnb and Uber, because “they’re here to stay”.
The statement was made in a position paper reviewing the collaborative economy, which found platforms that allow a direct exchange of goods between consumers and providers to be playing an “important” role in the local economy.
According to Minister for Innovation and Better Regulation, Victor Dominello, bookings made through online sharing sites contributed around $504 million to NSW’s economy in 2015.
Around 450,000 people earned income from the collaborative economy in the last 12 months and globally the US$15 billion sector is expected to grow to around $335 billion by 2025.
He continued, saying international experience shows destinations that have embraced collaborative economy and adopted “sensible regulation”, experienced a boost for local startups and entrepreneurs.
“The reality is the collaborative economy is here to stay.”
Victor Dominello, Minister for Innovation and Better Regulation
“We are living in the information age and it is vital that government policies embrace new technologies and enable businesses to operate with certainty.”
Airbnb Australia Country Manager, Sam McDonagh, welcomed the decision, saying it’s “great news for New South Wales” and people who list their home on the website.
“We look forward to working with the Minister and the NSW Government to help grow and diversify tourism in NSW and continue to provide visitors to the State with unique travel experiences.”
Sam McDonagh, Airbnb Australia Country Manager
However, Tourism Accommodation Australia (TAA) has emphasised the need to regulate commercial short-term accommodation operators and ensure they are subject to the same safety and operational regulations as hoteliers.
This would include ensuring they are meeting safety, insurance, taxation, body corporate, strata, council and State regulations that are currently being imposed on other short-term accommodation operators.
“Hotels, motels, serviced apartment, B&B and other legitimate short-term accommodation providers have a strict regulatory framework in place to protect their guests and ensure they operate fairly.”
Carol Giuseppi, TAA CEO
“In the past few months we have seen the results of the ‘no care, no responsibility’ attitude towards unregulated short-term accommodation with reports of assaults, property damage and a terrifying drug raid.
“Overseas, there have also been reports of deaths.”
She continued, saying even rental costs around Sydney could be impacted by the collaborative economy, with apartments being transformed from long-term rentals to make more money on short-term rentals.
“The reality for many people involved in the so-called ‘collaborative’ economy is that they take rather than give,” she added.
“They contribute virtually nothing to employment, where as hotels and other legitimate operators employ 21,000 people in NSW.
“They contribute nothing to collaborative tourism promotion. They often avoid paying appropriate taxes and community charges.”
