2019-02-12 Attachment 1 to Item 7 - Short Term Accom Online Platform Issues Paper

1.       Background
In recent years there has been a global explosion in the short-term home rental market, significantly
and undeniably facilitated by online accommodation share economy platforms such as Airbnb and
Stayz, which add volume and variety to the tourism supply chain1. These online platforms link hosts
and travellers, providing a structured online portal for booking, communication with a streamlined
payment gateway. They are part of the growing sharing economy, offering community-based online
services that co-ordinate property, goods and services. Advantages are offered through direct
marketing opportunities and ease of transactions, dramatically increasing the potential market for
residential tourism.

Airbnb, a market leader in the field, now offers rentals in over 200 countries 2. There has been
significant growth in on-line short-term rental listings in recent years, with the Australian market now
the most “penetrated” globally, with approximately 6 million members or subscribers to the service.

Since Airbnb was launched in Australia, the number of listings has risen to over 130,000 properties.
Nationally, Airbnb listings for whole homes represent around 3.5% of all rental accommodation.
However, the rate is much higher in coastal communities and high tourist areas. For example, in
Byron Bay, approximately 18% of the total housing stock is offered on Airbnb. Taken as a percentage
of the total rental housing stock in that local government area, this amounts to 48.3% of Byron Bay’s
housing rental properties being listed on Airbnb alone (excluding Stayz etc.)


 In 2017, Airbnb commissioned Deloitte Access Economics to assess the economic effects of Airbnb in
 Australia, aiming to quantify the economic contribution to Airbnb guest spending to the Australian economy,
 and evaluate the economic benefits enjoyed by guests, hosts and the wider community.
  Airbnb guests spent more than $244 million in regional Queensland in 2015-163
  Annual Airbnb guests in Queensland exceed 343,8043
  Annual expenditure by Airbnb guests in Queensland of over $330 million3


The ongoing discussion and debate around the impact of Airbnb has led to some misconceptions.
One being promulgated by Airbnb is that their listings are private residences with owners present,
thus ‘hosting’ their lettings. Airbnb also claims to be part of the “sharing economy”.

However, the growth in Airbnb and other on-line short-term properties has been greater for whole
houses or apartments being let than for actual home-sharing. Data from sources such as Inside
Airbnb clearly shows that the majority of properties being let on Airbnb are entire homes, with no
residents or hosts in situ. What’s more, the proportion of entire homes as opposed to home-hosted
properties appears to be increasing.

An ABC report by Sarah Farnsworth in February 2018 using Inside Airbnb figures noted that there
had been an 87% rise in total listings across Australia in the previous 12 months, with the number of
entire homes making up nearly 70 per cent of all listings 18.

Nicole Gurran et al.’s report for the Australian Coastal Council’s Association (Sept 2018) notes that
‘online listings of frequently available whole homes amounts to the equivalent of nearly half the rental
stock in Douglas, Byron and Bass Coast’. When considered in relation to rental vacancy rates, there
are approximately 80 Airbnb listings for each permanent rental available in Douglas and around 50
in Byron Bay. In both cases this indicator has more than doubled in twelve months and increased
across all of the communities in the sample 19.




Short Term Accommodation - Online Platform Response Issues Paper                                     Page 3