The Otago Motel Association is lobbying the Dunedin City Council to crack down on the ''booming'' alternative accommodation available in the city.
Association president Sue Rhodes made the call at yesterday's Dunedin City Council public forum, saying the growing number of ''unregulated'' accommodation options in the city needed to be addressed.
She had counted nearly 700 short-stay options available in Dunedin alone being promoted by Airbnb and other websites.
Her concern was that some were ''flying under the radar'' by operating as commercial entities while paying residential rates and avoiding other costs and regulations the association's moteliers had to comply with.
She wanted a ''level playing field'' for all, which meant those flouting the rules should be identified and forced to pay their dues or face heavy penalties, she said.
Other councils were already beginning to address the issue and the DCC should follow suit, she said.
''Sitting and waiting is not an option. Our moteliers are under threat as commercially viable operations,'' she said.
The rising popularity of services like Airbnb had other knock-on effects, including reducing the supply of houses and apartments available for long-term rent, she said.
It also attracted the attention of investors fleeing the Auckland market, who were increasingly turning to cities like Dunedin, which could drive up house prices here, she said.
Cr David Benson-Pope said the issue would be considered but was ''clearly'' a New Zealand-wide issue, while Cr Lee Vandervis wondered whether a crackdown was the right approach in Dunedin.
The city was already short of accommodation for major events such as next year's Ed Sheeran concerts, and he wondered where people would stay if more options were removed.
Ms Rhodes said she did not want properties forced out of the market - just for everybody to play by the same rules.
''All we are saying is can we all please work from a level playing field?
''These people are flying under the radar and it's just unfair.''
Dunedin Mayor Dave Cull indicated the council would consider the issue as part of a wider review of how studio rooms were charged rates, in time for next year's long term plan process.
