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Following on from my article about over-tourism, it seems that one of the biggest causes of this could be short-term rentals, which are also potentially threatening property markets and tourism in general. The issue stems primarily from foreign and local investors seeing the need for accommodation in tourism hotspots and, buying properties to rent only to vacationers. An SA Travelnews article says, “According to Inside Airbnb, Cape Town has 23 564 listings, exceeding the numbers in Berlin and Barcelona!” So, although this is a global issue, here in Cape Town we have one of the biggest short-term rental problems. There are some advantages to this however, so I thought it may interest my readers to look at the upside, the downside and the possible solutions.
The upside
The same article additionally states that according to Airbnb, 73% of its hosts say the extra income from their listings assists them with meeting rising living costs, and almost half say it helps them afford their homes. A FEDHASA spokesperson adds, “Short-term rentals have significantly affected South Africa’s tourism sector, generating thousands of jobs and contributing billions to the country’s GDP. They also provide vital income for many South African hosts amid rising living costs. Short-term rentals may also offer a solution in regions where hotels or guesthouses may not be available, resulting in economic upliftment for communities that may not have benefited from tourism before. This could be in the form of tourism spending at local restaurants, coffee shops, pubs, general retailers, local transport, entertainment venues and more”.
The downside
Well, so much for the upside, but unfortunately the downside paints a pretty dim picture. The counterargument is that citizens of the area are often pushed out of the property market by less availability of stock and exorbitant pricing and when short-term rentals are as numerous as those in Cape Town, for example, it is a recipe for over-tourism.
Even more worrying, from a visiting tourist’s point of view, is the lack of regulation of the average short-term rental which, if left unchecked, can run the risk of health and safety (and many other) concerns. Properties are not always cleaned to standard, smoke alarms and fire extinguishers etc. are often not even present and of course, in many cases when visitors arrive, they find the condition of the place to be far from what was advertised. Just one personal experience was that of my parents who found when visiting Madeira, a hot spot for foreigners who purchase homes and rent them to vacationers, that their accommodation was overcrowded and very uncomfortable.
Another concern is advertised properties that don’t even exist and tourists in South Africa being led into very unsafe areas that foreign guests would not know about. The fact of the matter is that none of these issues arise when tourists book with established hotel chains or well-known tourist venues, all of which are strictly regulated.
Possible solutions
The Portuguese authorities have put measures in place stating that if you are not a Portuguese citizen and you own a home, you need to occupy it for a minimum of one month a year or pay capital gains tax – and in Spain and New York more stringent regulations are being put in place, which I believe is a good way of trying to handle it. Here in Cape Town, the relevant authorities are being encouraged to, “implement sustainable tourism policies that protect the economy, local communities and residents’ rights, while simultaneously providing attractive accommodation options for tourists”.
Always about the balance
Although the issues around short-term rentals are numerous, there are also benefits, so there is a need for regulations and emphasising the importance of balancing tourism with community needs. The SA Travelnews article sums it up nicely with this observation, “South Africa’s tourism sector has only recovered so far to 85% of its 2019 levels so it is essential to continue attracting visitors to bolster the economy and create jobs. However, noting the experiences of destinations like Barcelona grappling with the effects of short-term rentals and over-tourism, South Africa is in a unique position to learn from global experiences and not repeat their mistake”. I agree, it’s all about getting the balance right and learning from those who have had to deal with this issue to a greater extent than we have. Let’s hope though that those in a position to implement the required regulations do so before it’s too
LIDIA FOLLI
CHIEF EXECUTIVE OFFICER
