Bookabach calls for reduced compliance costs for competitors

Wednesday, 15 July 2020

Bookabach is calling for reduced regulation on its competitors in the motel and hotel industry.

A holiday home rental company wants “outdated and redundant” regulation and compliance costs reduced for hotels and motels.

Bookabach has written to the Government asking it to ease up on the costs facing its competitors in the traditional accommodation sector.

But, Hospitality New Zealand Canterbury branch president Peter Morrison said the move was a “ploy” to keep regulation low for the likes of Bookabach.

“No government is ever going to reduce the costs once they are in and most of the costs are not from the Government, it’s local [body].”

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Bookabach corporate affairs director Eacham Curry said short-term rentals and traditional accommodation were complementary offerings.

“Bookabach believes there is an important conversation to be had about reducing outdated and redundant regulation and compliance costs on the entire tourist accommodation sector.”

Moteliers have a long list of regulations they have to abide by and with compliance, comes costs. They have to pay commercial rates and insurance, and for regular alarm and building warrant of fitness checks, along with public liability insurance.

The company has also renewed its call for the Government to regulate the short-term accommodation industry, which is something all accommodation players agree on.

Short-term accommodation providers Bookabach wants the Government to regulate the industry to avoid different sets of rules, regulations and by-laws put in place by 79 individual councils.

Traditional accommodation providers have long been calling for a level playing field with short-term holiday rental companies like Bookabach and Airbnb, who operate in an unchecked and unregulated industry.

Curry said the reforms should be led by central Government because different sets of rules, regulations and by-laws in 79 individual councils was neither efficient nor practical.

“It is time for strong national leadership on the issue of regulation for the short-term rental accommodation sector.”

The company wants to see a nationwide code of conduct to cover the behaviour of both guests and property owners and managers. It was also looking for national planning rules, a register of all short-term rentals and standardised compliance standards.

“Without central Government action, Bookabach fears a steady stream of local councils will resort to unproven night caps, punitive restrictions or excessive taxes.”

Tourism Minister Kelvin Davis said the Ministry of Business, Innovation and Employment had established an inter-agency official group to look at short-term rental accommodation issues, including proposals from the sector.

Group members included Statistics NZ, Department of International Affairs, Kainga Ora, Inland Revenue Department, Local Government New Zealand and the New Zealand Society of Local Government Managers.

The group was established just before the Covid-19 outbreak and ministers were yet to receive any advice from the group because of delays due to the pandemic response, Davis said.

The number of entire homes available for short-term let in Christchurch and Banks Peninsula has skyrocketed from 114 to 2135 in three years, representing a whopping 1772 per cent increase between 2016 and 2019. That figure is likely to have dropped since Covid-19.

But, Morrison said it was important the issue was tackled before New Zealand’s borders reopened and tourism resumed.

Christchurch City Council has grappled with how to regulate the industry since 2018, and earlier this year consulted with the public about what changes, if any, needed to be made to the District Plan regarding short-term accommodation.

Options ranged from allowing whole home listings everywhere to putting restrictions in some areas and not others. Another option was to limit the number of days a home could be listed for.

More than 425 people and organisations sent their views to the council and it would take those into account before deciding on a preferred option, which could lead to a change of the planning rules.

Council staff were expected to make a recommendation to councillors in the coming months.