Airbnb "undermining" Perth hotel boom

The Australian Hotels Association and the Tourism Council in Perth are claiming unregistered short stay providers like Airbnb are undermining hotels.


Key points:

  • AHA claim short stay providers like Airbnb are undermining hotels

  • 3,556 new rooms have opened in 32 hotels since 2014

  • An additional 2,728 rooms at nine hotels this year and 767 rooms at six new hotels to open next year


The Australian Hotels Association and the Tourism Council in Perth are claiming unregistered short stay providers like Airbnb are undermining hotels, undercutting them on price by ignoring costly safety and building regulations.


The AHA called on the State Government to ensure an even playing field. The AHA said 3,556 new rooms have opened in 32 hotels and serviced apartments across the metropolitan area since 2014. The boom is only half complete with an additional 2,728 rooms at nine hotels this year alone and an extra 767 rooms at six new hotels to open next year. The influx represents a 37% jump in city-based supply in five years and the Tourism Council said if Airbnb had taken off before these hotels were built, they never would have come to pass.


They warned regional areas such as Margaret River would be unlikely to get any major new hotels or resorts in the next few years because of the competition from Airbnb.


The Ritz Carlton is due to open at Elizabeth Quay with 204 rooms at the end of the year, Raine Square Hotel will open with 176 rooms and the 260 room Mantra on Hay Street will open at the end of the year.


A State parliamentary inquiry is investigating claims entire apartment blocks are being operated as Airbnb style hotels in a bid to avoid the costs of regulations.


There are also claims entire apartment complexes are being built and run as hotels.

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