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

In essence, it is apparent that the disruption caused by the prevalence and popularity of online
accommodation share economy platforms has created a number of challenges such as:
 The removal of long-term rental stock from the market, with a reduction in supply and consistent
    levels of demand driving up prices of the remaining rental stock.
 Pressure on tight rental vacancy rates in high demand areas which is exacerbated where online
    holiday listings of entire homes expands.
 Increasingly transitory nature of communities and regions.
 Impact on housing affordability, as property owners realise that short-term letting is a financially
    viable activity to retain ownership of a property rather than selling, thus decreasing the property
    sale stock and driving up prices.
 The boom in short-term rental removes stock from the general rental market.
 The influx of tourists in an otherwise quiet residential area impacting on public and private
    residential amenity, with tourists generating increased noise, waste issues, traffic and parking
    congestion.
 A range of land use planning concerns.
 Potential for active tax evasion (including income tax, GST, and applicable state or local
    government charges).
   Lack of regulatory controls over safety issues (i.e. fire safety).
   The risk of tourism gentrification and over tourism.

Local and State governments are now grappling with how to address the consequences and
implications of the rapid uptake in usage of online booking platforms. Existing planning policies and
planning schemes do not typically have the capacity currently to address these issues, lacking
parameters to protect the desired land use within a region from the effects of short-term holiday
rental activity infiltrating residential areas previously void of tourism. Compounding this, it is
understandably challenging to regulate an industry where the commercial enterprises have such
different business models, perspectives and goals.

As acknowledged, tourism is a critical economic industry in Noosa and the wider region. However,
without appropriate response and recourse, and the right mix of legislation, intervention and
enforcement, the Noosa community may be permanently altered and the tourism reputation of the
region compromised.

This paper aims to comprehensively explore the challenges arising from the sharp growth of the
short-term online rental market in the Noosa shire, and in doing so explore the complexities of the
issue in order to facilitate over time the development of a suite of reasonable and actionable
responses. The role and actions to date of Noosa Council (Council), the Queensland Government,
other private service providers, the Australian Tax Office and Airbnb are also examined.

Online accommodation share economy platforms, such as Airbnb and Stayz, are now a vital part of
the tourism industry in the Noosa region, contributing to the revenue and economic activity generated
by tourism. Council also recognises that the existence of these platforms is symptomatic of a
continued focus on tourism growth in the region.

Strategic awareness of the issues and the development of actionable responses is critical to the
sustainable and amenable future of the Noosa shire. Council’s response should consider the legal,
economic, social, administrative and monitoring issues, with a clear undertaking not to impact
negatively on the region’s tourism through overregulation and onerous legislation. It is important to
make sure that the response to “home sharing” is in the best interests of both the community and
the economy.



Short Term Accommodation - Online Platform Response Issues Paper                                Page 5