The fight against Airbnb in Cyprus has started again

Following the announcement of the new legislation for the creation of a register, the voices that speak of unfair competition have returned.

screenshot 2020 06 17 at 15.11.40 1 airbnb, accommodation, CONTRA

Following the opening up of the economy and the hotel industry, the debate over the operation of self-service Airbnb-type accommodation in Cyprus has resumed.

A few days ago, the Ministry of Tourism announced that the relevant law is being amended, while a register is being created in which individuals and companies active in the sector will be registered, while those who do not join will not be able to advertise or rent self-catering accommodation. .

The "feud" between hoteliers and people of traditional hospitality has begun long ago, when PASYXE persistently called for legislation to regulate the market, citing "unfair competition", as hotels are subject to huge costs per hour. that tenants of self-catering accommodation simply turn the premises into accommodation.

In an intervention in the "First Show" of Radio Proto, the President of the Registration Council of Real Estate Agents Marinos Kynigeirou claims that the specific accommodations have created very serious problems in the market.

"These are not organized apartments and real estate, while our Council has received several complaints, both from foreigners and from Cypriots. "Because there is no control over functionality and security in several cases, several tourists made reservations, came to Cyprus and in the end there was not even accommodation," he said.

According to him, this situation leaves many problems in the place, such as the "bad name" in terms of daily rent.

Observing that the new amendments to the law attempt to regulate the market, he replied that the problem has to do not only with tax issues, but with organizational issues.

"There is also a huge problem with increasing rents in cities. They all became hoteliers, there was no supply in the market and so prices went up. An arrangement must be made immediately, there must be control, they must be licensed and they must not operate uncontrollably ", he stressed.

The Association's response

The Association of Self-Serious Accommodation responded immediately, with Konstantinos Karakondis' Treasurer sending a letter to Economy Today claiming that the Association welcomed the new legislation from the outset, as it would help eliminate unfair competition.

"Everyone will now have to pay their taxes. Also, with the issuance of a registration number, there will be no arbitrary accommodation since they will not be accepted without the registration number from the various rental websites (airbnb, booking.com, etc.) ", he states.

According to the letter, in 2019 more than 400.000 visitors stayed in self-catering tourist accommodation.

"It is a logical consequence that there will be some complaints about their stay by some and yes, due to the lack of legislation, some experts were putting up fake accommodation for rent. This is exactly what the accommodation registry is trying to prevent. But let Mr. Kynigeirou answer us how many visitors had complaints from their stay in hotels, since he is also the same hotelier and former operator of self-catering tourist accommodation ", he states. .

With regard to the increase in rents, Mr. Karakontis does not seem to accept the interpretation that this particular method of renting is responsible.

“How exactly are we responsible? Because property owners choose, based on their constitutional right to rent their property in the short term instead of the long term? When real estate agents themselves advertise to investors that they can have a better income through short-term rentals instead of long-term ones? Or when real estate agents themselves advertise extravagant rents on various websites, targeting offshore companies based in Cyprus? We challenge Ms. Kynigeirou to propose the application of a ceiling on rental prices. He will find us by his side to support this effort, "he said.

Regarding the report that "we all suddenly became hoteliers", Mr. Karakontis answers that many of the companies operating in the field of self-catering accommodation are also hotel operators.

"Apart from that, one does not need to have the title of hotelier in order to be able to operate effectively a self-catering accommodation or even a successful tourist business. Many of the professionals in the field have protocols and procedures that would be the envy of many hotels. Many have been given the opportunity to save their property from sale and generally have an extra income. As Cypriots, we are a hospitable people by nature. We like to generously offer authentic Cypriot hospitality. These platforms gave the opportunity to get to know thousands of tourists up close, what Cyprus is going to say ", he concludes.

Source: Sigmalive