An explosion in the number of West Coast properties signed up to Airbnb has moteliers watching with concern.
Airbnb is a fast growing worldwide movement in which people sign up to offer their homes - or individual rooms - for hire.
"Tourism is on a high at the moment and moteliers can fill their accommodation, but when it falls off, like over winter, that's when it becomes noticeable," Hospitality NZ Westland president Steve Schmetz said.
"A lot of people are unhappy that BnBs are not required to meet council regulations for things like fire extinguishers, exit signage and the fact that people are not paying commercial rates," said Mr Schmetz, who represents Hospitality NZ from Greymouth to Haast.
"A friend in a Christchurch hotel chain said they were reluctant to build because Airbnb had sucked up the market and they didn't want to sink money into it."
With Airbnb accommodation steadily growing, Mr Schmetz said councils had to step up and address the issue.
Grey District Council environmental services manager Ben Healy said Airbnbs had been discussed in recent weeks, recognising that some in the Greymouth business community were "feeling the pain."
Hospitality NZ general manager accommodation Rachael Shadbolt said various councils had been investigating the impact of Airbnbs.
"Hospitality NZ has been aware of Airbnb for a number of years and hotels see it as a very real risk. We believe Airbnbs are benefiting from tourism promotion and should fund tourism promotion in their communities.
"A deeper concern is the safety of those who use Airbnb accommodation."
Ms Shadbolt said unregulated operators were competing in the same marketplace with fewer costs, because commercial operators had to pay for health and safety and building compliance, as well as commercial rates.
A search for accommodation this week on the Airbnb website for Greymouth, covering the period from May 15 to May 22, 2018, revealed a total of 163 rentals listed.
These included a nightly rate of $40 for a caravan parked outside a Greymouth house, up to $260 for a four-bedroom Greymouth house and $210 for a three-bedroom Rutherglen home.
Recently, Hospitality NZ made a submission to the Buller District Council's proposed rates overhaul and investigated the impact of Airbnbs on that region.
As of December 2017, they found 174 Buller properties were advertised at an average nightly rate for a room of $150.
Airbnb hosts had an average occupancy rate of 32% compared to Buller's commercial accommodation rate of 30%.
Some private operators in Buller had various investment properties (holiday homes and baches) advertised for rent.
Hospitality NZ said it was unfair that 53 commercial operators - comprising 25% of all Buller accommodation providers - paid 75.8% of the rates burden of the entire group.
One region which is heavily dependent on tourism - Queenstown Lakes District Council - has made moves to address the issue. It rates on-line accommodation providers based on their intended booked nights. It requires registration and for some categories, resource consent.
The categories that council uses are: Less than 28 nights is residential; 28 to 179 nights is mixed use (defined as 25% commercial and 75% residential); 180 or more nights is a separate accommodation differential, set at the same level as commercial.
- by Chris Tobin
