The hostels on Airbnb are more numerous than the hotels and the controversy on the informality intensifies – 05/05/2019



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Airbnb has revolutionized the way of traveling the world and Argentina is not immune to this boom: here there are 52,700 seats, which equates to about half a million beds. And just over half is in Buenos Aires, the second largest city in Latin America after Rio de Janeiro.

This significant growth of Airbnb, which is present in 191 countries of the world, also produce a negative impact: is the one suffer hotel companies in Argentina, who speak of "unfair competition". They point out that so-called digital platforms do not pay the taxes they pay if they: 43% of income. And the sector they are already talking about "uberization of platforms".

Records of the Association of Hotels, Restaurants, Confectioneries and Cafés (AHRCC) inform that at the moment in Argentina, there are 487,000 temporary rental places against 420,000 hoteliers, a figure that clearly marks "the growth of informality", denounces its president Ariel Amoroso.

President of the badociation of hotels, restaurants, pastry shops and cafes, Ariel Amoroso exclaims:

Ariel Amoroso, president of the Association of Hotels, Restaurants, Pastry Shops and Cafes, exclaims: "We have a habit of playing hard, competing, but how do you do it if the rules of the game are not the same for everyone? "

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"We are used to playing hard, competing, but how do you do it if the rules of the game are not the same for everyone?" We, the hoteliers, pay 43% taxes and Airbnb … zero! Do you have virgin staff?"Amoroso clbad, this percentage includes gross income, payroll taxes, income tax" and unusual services such as paying SADAIC, ARGENTORES, AADI-CAPIF, SAGAI and DAC for the sole fact of having a TV in every room, even if in disuse. "

Does the government intend to take action on this? There was no response despite the insistence of Clarin during one week. "We prefer to avoid harshness, conflicts in these moments", slips a source close to a government sector. Before asking questions, as if the government was aware of the unease of hoteliers, who claimed that it "was unfair competition"; or if you plan to take a tax measure, the same source kept the "silenzio stampa"although he hinted which will let "all go through the natural channels".

However, during the last hours of AFIP, they badured this newspaper that in the next two months will be known "a tax law more related to traditional rental companies". It would be a new regulatory and fiscal framework, as was the case with Netflix and Spotify. In the long run, all these digital platforms (Uber, Glovo, Rappi, PedidosYa) will have to pay taxes, "they said.

The temporary rental platform faces the same conflicts in other cities of the world, many of which have already established mitigate the impact of traditional housing (see below). Airbnb has already made tax agreements in more than 200 destinations and plans to replicate them in another 500 cities.

Victoria Bramati:

Victoria Bramati: "There is room for everyone on the market, we support clear regulations that encourage fair and inclusive competition," said Airbnb's Public Affairs Officer.

His spokesperson, Victoria Bramati, head of public affairs of Argentina, replies by email to Airbnb: "In March 2018, some payment providers in Argentina started withholding and remitting amounts regarding income tax to the hosts through the application of AFIP General Resolution 830/2000. We think it is important to note that a large majority of hosts were already registered as contributors and comply with their tax obligations"

Airbnb does not want to confront, it's clear, and practices a peaceful philosophy that translates into "There is room for everyone on the market. We support clear regulations that promote fair and inclusive competition and avoid creating new barriers to entry for ordinary citizens who wish to offer their homes and generate additional income, "said Bramati.

More combative, Amoroso adds another difference between the spaces rented by the Web platform and the hotels: "Nothing less than security, because departments have not been designed to guarantee safety standards Which hotels should have. Is a department able to control a fire? ", He asks rhetorically.

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The President of the Federation of Gourmet Hoteliers of Argentina (FEHGRA), Graciela Fresno, said that "although there has been no closure of hotels punctually because of Unfair competition, "she said. yes many are in a national situation limit"

Fresno states that FEHGRA "is not against the existence of Airbnb, which is a platform through which an offer of accommodation is sold", but this affects is that it's a platform that is not regulated. Airbnb would not support the costs of the formality we do. "

They also do not ask if there are private individuals who rent a room, a studio or two rooms ", andThe problem is that we are talking about whole buildings dedicated to temporary rent. And it's not a question of staff, but companies that live exclusively from that, "reveals Amoroso.

Airbnb hosts end up with 97% of what they charge, while the remaining 3% are commissioned from the digital platform.

Airbnb hosts end up with 97% of what they charge, while the remaining 3% are commissioned from the digital platform.

Speaking of additional income, Airbnb has informed you that "the hosts of the community they stay with 97 percent the price they charge for sharing their space via the platform, while 3% is the commission received by Airbnb"

With regard to hoteliers' complaints about "inequality" and "unfair competition", Bramati says: "To require temporary accommodation providers the same requirements as hotel companies is unfair because prevent thousands of people from generating a legitimate and necessary income"

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Amoroso adds that "you have little to say that all these properties that are part of the world of temporary leasing to foreigners, in dollars," adds Amoroso they stop being a rental option, in pesos, for compatriots, the remaining supply is therefore considerably reduced by the enormous demand and prices are therefore in the clouds. "

Airbnb responds with numbers, which supports its efficient structure. "For many, Airbnb it is a fundamental option of income generation stay, "says Bramati According to a recent survey of Argentinian organizers about the impact of our service on their lives, 51% decided to share their space to earn extra income, 30% use the money they have . able to make ends meet and 47% say that the money they earn helps to be able to stay at home"

For Graciela Fresno, who heads FEHGRA, "what is disturbing is that the growth of this platform already represents a greater amount of beds than the hotel industry of the country".

For Graciela Fresno, who heads FEHGRA, "what is disturbing is that the growth of this platform already represents a greater amount of beds than the hotel industry of the country".

Fresno is worried about the rapid growth of these platforms, "which already represent a greater amount of beds than the country's hotel industry, which impacts on the hotel business clearly, since the offer has been considerably enlarged, but the demand has not increased in the same proportions ".

FEHGRA and AHRCC criticize state inaction, "this can not be diverted and allow this unequal treatment." We agree that new commercial formats are emerging, but that local laws need to change and require compliance. How is it solved? Clarin. "The solution is easy, it's in the hands of the government, it only depends on a political decision"

How does it work in other cities

Amsterdam: the rent for full houses is limited to 60 days a year and will be halved.

Barcelona: short-term rentals must be licensed and no new licenses are issued.

Berlin: Homeowners require a permit to rent 50% or more of their principal residence for a short time.

London: short-term rental of entire homes is limited to 90 days a year.

New York: It is generally illegal to rent apartments for 30 consecutive days or less, unless the guest is present.

Paris: Short-term rentals are limited to 120 days a year.

San Francisco: Hosts must register as a business and obtain short-term rental certificates. The rental of entire properties is limited to 90 days a year.

Tokyo: the house sharing It has been legalized in 2017 and is limited to 180 days a year.

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