Airbnb warns of 'immeasurable harm threatening tourism'

Welsh Government proposals 'may face legal challenges'

- By ANDREW FORGRAVE Countryside and Tourism Editor

AIRBNB has lashed out at plans to introduce a licensing regime for short-term lets in Wales.

The booking giant said they could cause “immense harm” to tourism and may face legal challenges.

In evidence to the Senedd’s economy, trade and rural affairs committee, the company laid bare perceived shortcomings with the proposals. It said licensing is not needed and estimates it could cost Welsh hosts £4.5m-£15m each year.

Operators could also be left in limbo as they wait for licence applications to be approved, said Carl Thomson, Airbnb UK’s public policy manager. He said the planned “apply and wait” system where documentation is manually checked is an “outdated” model that in other countries has left operators waiting more than a year for approval.

If the bill is passed, accommodation providers in Wales will also have to pay a £75 fee, renew their licence every year and potentially complete a training course to continue operating. In practice Airbnb suspects fees will be much higher, noting that in Scotland they range from £653 to almost £6,000 in Edinburgh.

Mr Thomson said this could “potentially wipe out the entire yearly earnings of a typical Airbnb host”. The Welsh Government has rejected this claim, insisting the fee will stay at £75.

The company is also aghast at proposals to make booking platforms “criminally liable” for the correct display of registration numbers, a process the company says it has little control over. Without changes, the Welsh Government could be plunged into a legal battle, it said.

Mr Thomson slammed licensing as “blunt, unnecessary and grossly disproportionate to any potential risks that might be faced by guests”.

He claimed it will be a “powerful disincentive for those who are keen to make an economic and social contribution to Welsh tourism”.