Namibians could lose out on the growing and lucrative worldwide phenomenon of renting out their houses through the US based short-term rental company, Airbnb, following an announcement by the Namibia Tourism Board (NTB) that people offering their houses for rent must be registered with the board.
According to a notice published in the media recently by the NTB, those offering accommodation through the platform should be registered or risk being jailed for two years or face a fine of up to N$20,000.
All persons offering their homes to Airbnb have been requested to comply with Namibian laws and to register such accommodation with the Namibia Tourism Board by 31 December 2017 or face criminal proceedings.
This has been interpreted by some Namibians on social media as a backward step since Airbnb is a growing international phenomenon gaining a solid foothold amongst a certain group of vacationers who book their own travels using the internet.
Namibia could lose potential tourists who specifically want to use Airbnb for their holidays if the number of facilities available decline due to the regulatory administrative burden and related costs of NTB registration.
Other posts question whether it is legal for the tourism regulator to require the same registrations for a private home as for a public accommodation business. They suggest a legal challenge if the NTB applies its Act to decisions taken by private home owners.
NTB Chief Executive Officer, Digu //Noabeb, said in an interview that registration with the NTB did not mean that the tourism regulator was against providing accommodation through Airbnb.
“We are not against Airbnb. By all means, use whatever marketing platform that you want as long as you are registered with the NTB. We already have people using TripTravel and Facebook to offer their facilities, but they are registered with the NTB,” //Noabeb said.
He said anyone offering accommodation services must meet a number of standards, including possession of a local fitness certificate showing that they comply with health, zoning and business operation standards.
An examination of NTB’s website, lists a plethora of cost-ridden regulations to be followed by any Airbnb provider who decides to register.
If Airbnb hopefuls register as a Bed and Breakfast according to current NTB regulations, they would be required to, among other things, pay prescribed application fees (based on the number of rooms offered), submit to inspections, submit the one percent bed levy every other month, provide proof of company registration and ownership of the premises or lease agreement.
They would be also required to provide proof of ID, permanent residence or work permit of a manager, provide proof of permit, approval or authorisation to conduct a business (Certificate of Fitness - which also carries significant costs, possible building upgrades and fees), provide an approved building plan, submit a VAT certificate, and a Good Standing and Registration Certificate with the Social Security Commission.
Commentators say these regulations are a barrier for a private citizen that is not (and does not want to be) a business entity.
Registering as a business (which is required for NTB registration) with the relevant ministry also carries thousands of dollars of costs and annual registration fees.
//Noabeb said NTB has already discussed the issue with Airbnb representatives for Africa and has requested that only registered facilities be allowed to advertise on Airbnb’s website.
The private sector, which has previously complained about Airbnb facilities cutting into their business, takes the view that those wanting to offer paid accommodation must register with the NTB as per the law. Otherwise, the playing field is not level.
They find it unfair business competition if one segment of those offering accommodation have to carry the cost and administrative burden of NTB registration and set their prices accordingly, while another segment can offer lower prices because they are allowed to operate without those same regulatory obligations.
“HAN believes in competition, but the playing field must be level,” Hospitality Association of Namibia (HAN) CEO, Gitta Paetzold said.
She said the association has no problem with anyone using Airbnb as long as there are registered with the NTB. “We need quality control and regulations. We support the NTB. If a tourist contracts a bug or has an unpleasant visit or feels cheated, they won’t say it is the fault of Airbnb, they will say they had a bad experience in Namibia. And that will then reflect on us all. We have standards for very good reason.”
The Federated Hospitality Association of South Africa (Fedhasa) Chief Executive Officer, Tshifhiwa Tshivhengwa, says that in his country, occupancy levels in established facilities may have begun reflecting an impact from the rise in Airbnb offerings in larger urban areas like Cape Town, Johannesburg and Durban.
He said Airbnb providers have to follow existing registration laws of the various municipalities, but “in general, a property owner may rent out up to three rooms for bed and breakfast purposes, in a dwelling where a family still lives.”
Brett Herron, a member of the Cape Town mayoral committee for transport and urban development, said apart from regulating the land use of properties, the city generally “does not get involved in the standard or monitoring of services provided at guest accommodation facilities.”
In South Africa, besides increasing the tourism accommodation available, Airbnb has also led to the birth of other support businesses such as short-term rental management agents, who offer to do all the work for an Airbnb host, for a fee and additional employment for cleaners and accommodation service providers to assist a property owner with their Airbnb clients.
Reuters news service reported this week that Airbnb Incorporated registered 1,2 million guest arrivals in Africa last year driven by the internet plugged-in millennial generation and the rising number of more affluent world travelling market segments between 40-60 who now choose to book their holidays online.
Airbnb has shaken up the market for travel accommodation, competing with smaller hotels and guest houses by allowing people to rent out their homes or apartments, either in full or as part of a house-share, Reuters noted.
Presenting the latest figures at the Johannesburg City Hall, Chris Lehane, Airbnb’s Global Head of Public Policy and Public Affairs, said growth in inbound visitors to Africa jumped from 572,000 in the period 2015-16 to 1,2 million in September 2016-September 2017.
South Africa is the leading country on the continent in terms of total guest arrivals, followed by Morocco.
Close to 60 percent of trips to Africa in the past year were booked by millennials and 18 percent of guests travelled as part of a family.
Usually defined as people who reached adulthood around 2000, millennials use online travel sites that aggregate thousands of hotels and make choices based on peer reviews.
Airbnb this year launched ‘Experiences in South Africa’, an offer through which locals create unique activities, giving travellers access and deep insights into communities and places they may not otherwise come across.
Lehane said the firm will invest US$1 million through 2020 to “promote and support community-led tourism projects in Africa”, where 100 000 listings were reached last year.
