Regulations needed for Airbnb rentals, competing B&B owners say

Bed and breakfast owners on the Avalon say unlicensed Airbnb operators are competing with their licensed businesses — and they want the provincial government to level the playing field.

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Earlier this month, a letter was sent to Tourism Minister Christopher Mitchelmore, demanding his department "enforce the operating license requirement and shut down unlicensed business operations" from short-term rental platforms like Airbnb and Vacation Rentals by Owner (VBRO).  

That letter was written by Audrey Flynn, president of the Bed and Breakfast Association of Newfoundland and Labrador. Flynn said she witnessed Airbnb competition first-hand while running Cantwell House Bed and Breakfast in St. John's. 

"Rates have been dropping due to people staying at Airbnbs as opposed to fully licensed B&Bs," Flynn told CBC News. 

"[In] 2016 we had an increase in traffic come through St. John's, but unfortunately accommodations were down 20 per cent."

Flynn said that decrease is a direct result of Airbnb coming to St. John's, but she doesn't believe shutting down the site is the answer. 

"Airbnb is a platform. It is amazing. It's a great place to put your business. But the fact for this city is, a lot of people on there are unlicensed operators, which gives them the opportunity to give lower rates per night," Flynn said.

"We can't do it with all of our taxes [and] fees."

Unfair competition

Flynn said Airbnb hosts don't have to jump through the many bureaucratic hoops that she does — obtaining a business license and receiving inspections from Canada Select, the Department of Tourism, fire departments and so on. 

"They don't have to go through those," Flynn said. 

"There are operators on Airbnb that are legal operators, but the general population of them is not."

Emilie Bourque understands Flynn's frustration. Bourque has been renting out her two-unit home in St. John's on Airbnb for the last two years and agrees that some regulations are needed. 

"I absolutely think it should be a level playing field at this point," Bourque told CBC News. "If you have two people operating similar operations, you want them to be governed by the same regulations and you want everything to be fair."

But what exactly those regulations would be is still up for debate.

"There needs to be some thoughtful discussion on what it would look like to have something that suits all of the types of short-term accommodations in St. John's right now," Bourque said.

Future regulation unclear

Mitchelmore said he recognizes vacation rentals by owners aren't just a trend, but said the tourism establishment act is already in place and the province doesn't recognize unlicensed accommodations.

​"We require people to follow the tourism assurance program. We will only advertise those accommodations who are licensed, who are regulated, on our tourism website," Mitchelmore told CBC News. 

"We will not advertise anybody who does not meet those standards."

As for cracking down on some of the unlicensed rentals on Airbnb, Mitchelmore said his department is reaching out to the hospitality industry and Airbnb to "see what options are available."

Regulating the sharing economy has proven difficult across Canada, something Mitchelmore said will be a topic of discussion in the coming weeks.

"Other jurisdictions like Quebec have implemented regulations, but based on our review they have not been quite successful. There's only been a 5 per cent compliance rate," he said. 

In the meantime, he said the department will examine the tourism establishment act to see if any changes need to be made. 

"I think we can find some common ground and some solutions that exist in this province so that we can have a better overall hospitality industry."