Regulation Catches up with Innovation – The Case of Short Term Rentals

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The World Tourism Organization (UNWTO) has published the first systematic overview of how both national governments and local authorities are addressing and managing new business models in the accommodation industry. The so-called “sharing economy” has experienced significant growth over recent years and is poised to outpace the growth of traditional accommodation. Drawing on case studies from around the world, “New Business Models in the Accommodation Industry” analyses existing rules and regulations for the sector.

Drawing on 21 global case studies, the new UNWTO report notes that most of the measures implemented refer to areas of ‘fair competition’ and ‘consumer protection’, specifically measures related to taxation and registration and permits In comparison, measures relating to ‘planning and sustainability’, are less commonplace. At the same time, the report highlights the challenges destinations face in implementing rules and regulations, with a lack of local capacity and a lack of clarity over whose responsibility it is to monitor and regulate short-term tourist accommodation.

Commenting, UNWTO Secretary-General Zurab Pololikashvili said: “There are significantly more regulations than we thought and it is encouraging to see destinations taking the initiative. However, many challenges remain, including the practical implementation of rules and regulations relating to the short term tourist rental market. Good governance and effective cooperation between the public and private sectors are key to successfully meeting these challenges.”

Case studies analysed for the “New Business Models in the Accommodation Industry” include European countries such as the Netherlands, Italy and Spain, which are home to some of the world’s most popular cities for tourists, as well as countries in the Americas such as Mexico and from across Asia as is the case of Japan.

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