One challenge for Fiordland is housing, particularly rental accommodation.
A large percentage of properties in Te Anau are either personal holiday homes, or let out on the short-term peer-to-peer accommodation market. This is a prime example of where solving one problem has created another.
In 2007, a couple of friends sharing a flat came up with the idea of putting an air mattress in the lounge and offering breakfast. After setting up a website the following year, there was a conference on in their hometown of San Francisco and they got their first customers. I wonder if they envisaged that in 2023 this website born out of humble beginnings would have about 7 million listings.
There are about 300 properties on Airbnb in Fiordland, which when put into perspective with a population of about 2500, it becomes quite material.
The recently completed Beyond 25 plan has identified only 8% of properties in the Southland district are rentals, compared with 32% across the rest of the country. While this is reflective of our relatively affordable housing, and the high proportion of home ownership, it’s still quite a difference and creates a significant problem in some areas. Te Anau is really feeling the pinch to the point of being able to refer to it as a crisis.
Fiordland has a number of tourism and hospitality businesses providing visitors with a world-class experience.
However, they need staff who need somewhere to live. Several properties which used to be available for rent have been converted into short-term accommodation. This sector is largely unregulated, and with all of the rules and restraints on landlords, it is easy to see why one might find a short-term rental more attractive than a traditional rental property.
As the peak summer holiday season looms, I know many businesses in Te Anau are still looking for staff, and this problem is exacerbated by nowhere for the staff to live. This puts pressure on businesses and could impact the visitor experience.
The explosion of Airbnb has caused similar problems across key tourist areas around the world where it has had a dramatic impact on the supply, and affordability of the traditional long-term rental market, and the housing market as a whole.
Queenstown and Christchurch councils have ended up in the Environment Court after trying to regulate this sector, and while somewhat successful it has been a costly process and is still very difficult to enforce and ultimately still relies on good faith.
Our District Plan requires a property sleeping more than five people to have a resource consent, although many would argue this is not sufficient. Understandably those in the accommodation sector have strong views around the lack of a level playing field.
As a council we have been listening to the voice of the community. The Beyond 25 Plan has provided us with accurate data and, with our economic development agency Great South, we are focused on finding innovative solutions to deal with the issues in front of us.
— Southland District Mayor Rob Scott
