Airbnb, Uber, and Lyft - why regulations are necessary - SA Tourism

Airbnb, Uber, and Lyft have quickly risen to prominence as the face of the new 'sharing economy'.

The rise of this new sharing economy begs another question, does Airbnb threaten the hotel industry?

READ: Number of South Africans visiting the seaside has dropped

The Tourism Business Council of SA (TBCSA) council has called for the government to regulate Airbnb rental sites as they pose a threat to the viability of conventional lodging providers such as hotels.

Speaking to Bongani Bingwa, CEO of SA Tourism, Sisa Ntshona, says as South African tourism, they welcome any players that come in and actually start to add more value.

The issue here for us is not so much regulation but more about levelling the playing fields and by that, we actually mean the following, for instance, most BnB users are actually registered as private residences.

Sisa Ntshona, CEO of SA Tourism

And they will pay rates and taxes for their private residence, the issue becomes, however, the occupation of your home is no longer the two or three people but over a month period has then been seeing a lot of guests.

Sisa Ntshona, CEO of SA Tourism

He says that this means that essentially the bulk usage of water, sewage and everything else is no longer private residential but more commercial.

He adds that those residences should, therefore, be deemed as private enterprise and pay relevant taxes.

Listen below to the full interview:


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