'Air BnB is good competition but there are rules that need to be played by'

Competition from Airbnb is being pegged as a possible threat to the traditional hotel business since its establishment in 2008.

What is required to avoid the negative impact the technological advancement may have on jobs in the formal hospitality sector?

The Federated Hospitality Association of Southern Africa (Fedhasa) recently made a call to the Department of Tourism to address issues of regulation.

Fedhasa is requesting that people who rent out their homes through the online accommodation service pay tax, apply for liquor licenses, be visited by health inspectors and that tour guides be registered, like any other hotel.

CEO Tshifhiwa Tshivengwa says while they welcome the competition, a level playing field is needed.

We can debate on the size of the impact....I was talking to one hotel in Cape Town and they told me that for the first time in December they had some rooms available. Usually, they don't have rooms available during the period of Christmas and New Year. The impact is starting to creep in.

Tshifhiwa Tshivengwa,CEO of the Federated Hospitality Association of Southern Africa

We accommodate any cost along the lines of those accommodation establishments that are formal, registered and so on. We are one of the countries that have a very diverse accommodation offering.

Tshifhiwa Tshivengwa,CEO of the Federated Hospitality Association of Southern Africa

We find that international travelers are no longer coming to hotels and going to Airbnb properties, which is fine but as long as we are all following the same rules.

Tshifhiwa Tshivengwa,CEO of the Federated Hospitality Association of Southern Africa

An industry summit is expected to take place as part of a means to address concerns from business owners.

Listen to the full interview below...


This article first appeared on 702 : 'Air BnB is good competition but there are rules that need to be played by'


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